Shocked isnt the word! Consolidation

InsideInsurance

jovisd79 wrote: »

sorry probably should have explained a bit more......although i didnt call this time enquring about consolidation loan, it was on my mind that at some point after paying off all the loans that a loan would be the way forward to clear the credit cards. The way i saw it was that it would be a set payment with an end date rather than the continous accruing interest on the cards.

It just amazed me that the total amount payable was double the original loan amount. Obviously I'll look at other avenues now in the future, whether that be other lenders or simply attacking one card at a time with as much as i can while paying the minimum on the others.

First of all, assuming you dont keep spending on the credit cards then a loan and a creditcard is the same in that they both accrue interest daily. The difference is that a loan they calculate everything up front and lock the interest for you where as a credit card they dont but there are plenty of online tools to calculate the same things. The advantage of credit cards is that it tends to be easier to make over payments without penalty -v- a loan.

Certainly attack each card in turn with the highest interest rate one first. If your credit rating isnt great then its worth slightly overpaying on the other cards too as it will remove all the minimum payment markers against you (at least from a cursory look).

As to being quoted high APRs for a loan.... well thats just how it is. A few years ago when my finances werent as healthy I had a call from Barclays with them offering a debt consolidation loan. Even after taking the details that my debts were all on interest rates of under 10% they still tried to sell me a loan at 29.9%

jovisd79

InsideInsurance wrote: »

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Certainly attack each card in turn with the highest interest rate one first. If your credit rating isnt great then its worth slightly overpaying on the other cards too as it will remove all the minimum payment markers against you (at least from a cursory look).

Thanks for the advice, I didnt realise there were minimum payment markers? I thought as long as you were making at least the minimum all was good. I always try and pay a little over anyway but this is really useful to know.

ok 3 of the cards i used the calculater on here and if I keep up the rate of payment im paying at the monent they'd all be paid off within under the 5 year limit that i would have wanted a loan over. the last one which im pretty sure of what the interest rate is but went to check and believe it or not its with my bank and no where on my online accoutn info does it state the interest rate! will dig out my statements and see on there. the other 3 were at 2.08% per month if that sounds right.

InsideInsurance

Yes, the payment is marked with an M if it is only the minimum that is paid.

CLAPTON

jovisd79 wrote: »

Thanks for the advice, I didnt realise there were minimum payment markers? I thought as long as you were making at least the minimum all was good. I always try and pay a little over anyway but this is really useful to know.

ok 3 of the cards i used the calculater on here and if I keep up the rate of payment im paying at the monent they'd all be paid off within under the 5 year limit that i would have wanted a loan over. the last one which im pretty sure of what the interest rate is but went to check and believe it or not its with my bank and no where on my online accoutn info does it state the interest rate! will dig out my statements and see on there. the other 3 were at 2.08% per month if that sounds right.

2.08% per month is equivalent to 28% APR