should we consoladate personal loans?

p333p

I have a personal loan with RBS for 12.5K and I am paying £275 pm its with RBS.

Hsuband has personal loan with Tesco for £10k and is paying £350pm

Both are due to end within next 4 years but they are cripling us financially now and making it hard to afford anything or consider moving as these outgoings are bigger than our mortgage!

I was thinking about if it would be a good idea to take out one bigger loan over a longer period say over 10 years with enough to cover both and redude the monthly payment. this would free up more of these money to go on a bigger mortgage?

Is it better to have lower monthly outgoings or a lower outstanding debt?

any advice appreciated and also who should i talk to for loan of that size bank? should i use the words consolate when trying to get the new loan?

Tixy

Is it better to have lower monthly outgoings or a lower outstanding debt?

That depends on your situation - but in general most people would say a lower outstanding debt and at as low an APR as you can get. If you are paying less then its likely that you will be paying for much longer, and so also may well work out that it will cost you far more in the long run.

Before you make any decision have you worked out a really detailed income & expenditure account to work out how much you can afford to these debt repayments after normal living costs?

Do you have any other debts?

What APRs are you paying on these 2 loans?

In addition to whether its a good idea to consolidate the other big thing to consider is are you likely to be able to consolidate. Its pretty tough getting unsecured loans in excess of £15k in the current market, though it will of course depend on your financial circumstances, how much you both earn and your credit histories (and most banks start to increase the representative APR above £15k than for loans below £15k).

TadleyBaggie

It's unlikely you will find anyone willing to offer a £20K+ loan if you are currently struggling. As far as a lender is concerned this appears to be additional debt, the fact that you indend to repay the existing debt probably won't be acknowledged by them.

tell_it_how_it_is

Also, from the figures you give, it would appear both of these loans have been taken out in the recent past (?), which probably further reduces the chance of finding a lender willing to offer a loan which would - even if only for a short time - see your total debt exceed £40k.

My first suggestion would be to post a statement of affairs over on the Debt Free Wannabe forum, which may help with advice on how to save on your monthly outgoings and give you a little bit of breathing space.

pjproctor

I can see one problem here... The best company for providing un secured loans over a 7 yr period is Tesco ! and both your current loans are Tesco/RBS loans. I am in a similar situation and need to reduce my outgoings due to taking a lower paid job. I have a Tesco loan amonst other debt and tesco would not refinance me. I have been approved by my mortgage provider for a 20k loan over 15 yr but it will be secured and have a variable interest rate. However the current rate is 4.5 % apr and could rise.. BUT most un secured loans are 7% plus apr so therefore there would need to be several interest rates hikes to surpass an un secured loan rate......Keep buying lotto tickets in the meantime whilst you decide your next move.... I am sill unsure....

sharpy2010

p333p wrote: »

any advice appreciated and also who should i talk to for loan of that size bank? should i use the words consolate when trying to get the new loan?

If I was you, I'd be tempted to avoid using the word "consolate" as it merely means to console someone or to comfort them. I don't think it would have the right effect in the bank ;-)