What would you do?

Skymoo_2

Sorry for all the questions, but I am in need of advice from those in the know! I have the following debts:

9800 cc

3400 overdraft at bank

1800 loan

I will have £500 available to try to pay these debts. What is the best way to do this

a) apply for loan of 15k with bank

b) apply for loan of 3400 to pay o/d and then switch the cc balance to 0% card (s), also can you transfer to more than two cards if the bank have a limit of say 6k?

c) is it better to borrow less than 15k to achieve a lower headline rate

d) pay off o/d at £500 per month until it's gone; continue paying the cc at the minimum payment, and then apply for a loan to clear the balance on card?

Also, one other question, if I apply for a loan through the bank, is that the best place, and as a joint mortgage holder, who does not pay into the mortgage any longer, will that affect whether they grant the loan or not?

Any other options/ideas would be most welcome. Many thanks

drbesty

You already owe £15k, I'm not sure if anyone would give you a loan, your own bank would be the best place to start and if they turn you down there's not much point applying anywhere else

DCFC79

Whats your salary?

Skymoo_2

18k pa roughly

DCFC79

Skymoo wrote: »

18k pa roughly

On that basis you dont have a chance in hell of a loan of 15k unless you dont want the use of your legs in which case use a loan shark.

Look at cutting your outgoings.

Whats the apr of the cc and loan.

Why so much in the OD and cc ?

Caz3121

It won't happen. On paper you owe £15k on a £18k salary and you want to borrow more....the calculation often quoted here is debt = 50% income .
Are the bank calling in your overdraft?
Have a look at makesenseofcards to see which you should be overpaying first to get the debt down

thegirlintheattic

Use the £500 to pay whichever has the highest intrest rate. You will not get a loan.

jason1231972

As pointed out, the loan option is probably a no-go.

If you want an 'easy' option, 'snowball' your debts. Use your £500pcm (which isn't a bad amount!) to tackle smaller debts first, whilst keeping up with the minimum payments on the larger debts. Once the smallest debt is tackled, apportion the bulk of your £500 to your next smallest debt (whilst still of course keeping up with any minimum payments).

If you want the cheapest option (may or may not involve a bit more faffing), apportion the lion's share of the £500 to your most expensive debt, and work downwards in terms of interest rates.

Moneymash

May I ask how you are a joint mortgage owner but no longer pay into the mortgage?

I hope this isn't being nosey but you did mention it...

Takeaway_Addict

If you don't mind seeing and putting a mark on your credit check then apply for a loan for the most you need.

What you need to do after that is to destroy all credit cards if it is allowed.

If not then as has been said snowball it

Skymoo_2

Sorry I haven't been back. Had problems logging in, and lost the will! OK update. Went to my bank. Explained my situation, they said I had an excellent credit rating. Haven't defaulted on anything at all, so history was good. Loan for 15K approved no problem.

I hope this outcome helps others as the opinions on here lead me to think I had no chance of sorting this mess out.