What would be best....?

LavenderBoy

Well where to start !?!?!

Basically I am considering getting a consolidation loan...and do not know if it would be for the best or not. I have listed my debts below and the apr and monthly instalments too. Any help would be sooooo appreciated.

Very Catalogue - Balance £499.68 - Monthly - £22.68=Apr34.98%
Barclaycard - Balance £800 - Monthly £15 = Apr29.9%
Pounds to Pocket Loan - £52.53 monthly , 9 Instalments left. (ridiculous amount of apr !)

Theres no excuse for getting into such debt and I am not going to sugar coat it but I can admit that I was stupid and just plain greedy and I have got myself into this situation but it feels like because I am just making minimum payment on my credit accounts that the debt never dissapears just stays the same. Pounds to pocket was the worst loan to take out as it is such a high monthly figure for a loan of £400. For the last 3 months I have really cut back on everything and I am trying to be as frugal as possible.

I dont know wether to try and work more overtime etc to pay off higher sums each month and gradually pay these off ? or to get a consolidation loan (e.g a loan I saw was for £2000 which would allow me to clear them off, over 3 years, monthly £100 roughly) Would it be better to just try and pay my current amount off by larger amounts when I can or get a loan and just pay them off?

Any help would make me smile so thankyou!

DVardysShadow

Consolidation loans are not generally recommended here. The risk is that you take the loan, believe it is 'easy', take your eye off the ball and end up needing more credit so end up taking all the old lines of credit to the max, ending up in it twice as deep. Added to which, the repayment schedule is relentless, meaning that you will turn back to the cards you have cleared if things get tough again.

Best advice, work the overtime, pay minimums on everything except the credit with the highest APR and throw every spare penny at that debt until it is gone. The repeat with the next highest APR debt.