Consolidation Loan?

smj43

Just wondering if there is any hope for me. I currently owe about £3000 on various credit cards. All of them are high interest, and I have 5

Ideally, I would like to get an unsecured loan for £3000 to pay them off as I'm currently paying about £160 a month (just above minimum on each) in total and my debt isn't going down very quickly due to the interest.

Problem is, my own bank won't lend me it as they say I can't afford the repayment, which ironically, would be £10 less than I'm currently paying to the credit cards every month without fail.

I'm employed, have been in the same job 4 years, earning 17k. I can't say I would rate my credit as 'bad', nor 'good'. I have quite a few searches within the past 12 months, only 3 years history and a handful of sub-prime cards which I'm sure looks bad. On the other hand, I've never missed a payment on any account, no defaults and on electoral register.

Is there anything I can do? Or am I just going to have to painfully pay off the cards at 20%+ APR?

unimaginative_user_name

It's generally a bad idea to borrow money to get out of debt as people tend to continue using credit cards too and end up with twice the debt. You might be better off posting on the debt-free wannabe board where there are lots of people trying to pay off debt. They will suggest you post your Statement of Affairs (list of income and expenditure) and suggest areas where you could cut back.

Have you got things you could put on eBay? Have you tried dropping a brand level when you shop? Do you keep a spending diary so that you know exactly how much you spend? The little things really add up. If you can make small savings here and there and throw it all at the debt you will start to make inroads into your cc balances.

Good luck!

smj43

Thanks for your reply, it was very helpful. You raise a valid point about borrowing to pay off debt however my plan was to pay off all cards and close them, except one which I would keep. I merely wanted to consolidate all card to one monthly payment with a lower interest rate than what I am currently paying. I suspect that your conclusion is spot on though and I may just have to put up with it and pay it off as quickly as possible.

cos_2

I have to agree with UUN and agree with your conclusion as well. It would seem to be so good and sensible to get it all rolled into one, but lenders are very wary. They've seen it all before when folk simply don't cut up the cards and fall off the precipice.

You seem to have a good handle on this - good luck!