Right place to post?

Brenster

Most people are correct that consolodation is not the answer in most cases, but there are a few circumstances where it works, especially for people who have impulsive spending issues.

If you have debt spread accross smaller loans and 2 credit cards, instead of paying your 'planned' amount, impulse can get the better before making credit card repayments causing you to pay the minimum and spend the rest impulsively (whether it be impulsive shopping, drinking, gambling, smoking etc). Whereas a loan has a fixed amount which must be paid......no reduced / minimum payment. This is why I think in your particular instance it may be the correct answer.

In addition to this i would repeat the importance of closing all credit card accounts and overdraft once consolodated, and make the term of the loan as short as possible, based on your available repayment amounts, dont cut yourself to the bone, maybe allow yourself a 'emergency fund' of £50 per month when doing your calculations to cover any unknown eventuialities.

Good Luck

powellct

Thanks Brenster - I'm going to do my own spreadsheet as the online one only allows an "extra amount", rather than a fixed payment (i.e. the "extra" will go up as the minimum payment comes down. I like your idea of a 0% card and a smaller loan though.
Does anyone have any idea if my rating would have been affected by being approved for a loan, even though I've not signed up??

powellct

Be really grateful if someone could work through my calcs so far. I've done a simple speadsheet (sum/product) for 2 of the cards (Barclay & Egg) using the current monthly interest (1.805% & 1.667% respectively) and a flat payment of £150 to Barclay, £100 to Egg, 2.25% min payment on both. If I've got the formulas right, these cards should be debt free in May14 & Feb15 respectively.
Rather than the online additional payment, I've taken minimum payment from the flat one, so as the minimum reduces the additional goes up (if that makes sense)
Obviously this leaves the other two to sort out as I've not taken those into consideration with the sums I can pay, but it would be good if someone could let me know if those figures sound right.
Can email if needs be,
thanks, Colin.