Advice Needed On Loan - Thanks !!!!

xgingerx

Hi, I am unsure what to do for the best to clear my debts and more importantly bring my monthly outgoing on debts down.

I have the following balances
Cards
Cap1 600 24%
Next 400 26% (guess)
Vanq 1000 35%
HSBC 2000 0% 7 months to go
Barclay Plat 2250 0% 7 months to go
Asda 400 26% est

Loans

Citi 5000 26%
Cahoot 9000 14.9%

Catalogue
Littlewoods 500 0%

I am paying out about 700 month on these bills.

I take home 1654 / month £26500 k / year gross

Outgoing other than debt is approx 600 - rent / car / food etc etc.

I am thinking of getting a loan but the question is I am not sire about is

1) For how much
2) When I know for how much what should I settle with it.

The problem is I am thinking if I got a 14k loan paid off all my cards and the high 6k loan then my payments would come right down would leave more desposable income, or would i pay off the 2 loans and then use all my extra income to clear the cards.

Sorry guys but I am really struggling to understand how to tackle this.

Appreicate any ideas and view.

fyi I dont have any adverse credit and have never missed any payments.

mountainofdebt

is don't get a loan, although I have to be honest I doubt you would get one.

The reason I say don't get one is that it is obvious from your comment that a loan would give you more disposable income means that you haven't addressed the cause of your debt and if you do get a loan (which I seriously doubt becuase of affordability) then you could land up in bigger trouble than you are in now.

The question you need to be asking yourself is how do I clear these debts asap - only that will give you more disposable income.

If you are spending £600 approx on 'living' then theoretically you have you have an extra £300 to throw at these debts. If you haven't then this suggests that you are a)spending money on other things or b) you are spending more on rent/food/travel etc than you think you are.

What you need to do is really analysis what you spend and what you spend it on.....then you need to cut down on any unnecessary expenditure and throw this at the debts, starting with the debt with the highest apr.

Yes it's not a quick fix but it is the only way to do it.

If you go over to the debt free wanabee board, there are lots of us in the same boat as you and you'll soon pick up a load of tips to chip away at that debt.

racer256

Hi Xgingerx,

My advice is not to get a loan as you will be paying interest on top of interest. You will find that only half of your repayments actually repay the debt. The rest is interest and PPI (if you go for it).

Try and find a credit card that pays 0% for 13 months you will be charged a transfer fee but it will save you loads on interest during that time. After the 13 months switch cards again until your debt is clear. The more you pay off the less you will be in debt. If it means taking two 0% interest cards it is the best thing as you will be then saving on interest.

Best of luck x

Slowly killing my debts
Virgin CC Cleared
HBOS Loan £978