Debt consolidation query

Scout_75

Hi there

Just wondering whether I can get a bit of advice. Unfortunately over the last few years I have managed to run up a large debt. Whilst I can afford the repayments I am paying over £900 a month on it and would ideally like to try and reduce this. My credit score is 844, Fair, and I never miss payments.

Most of the debt is made up of 2 structured loans. These cost me £541 a month and the rest is a mix of credit cards and overdrafts, costing me £379. Three out of the four credit cards are currently on 0%, but these deals will obviously end. Obviously whilst the loans are structured and clearing off the debt year on year, the remaining £18k is a bit scattered and I am concerned it is going to be hard to pay this off without structuring it into a third loan. My problem is of course that whilst my credit score is ok, my overall level is high and this deters lenders.

My questions are:

-does it sound like the best option to try and structure this £18k into a third unsecured loan?
-am I likely to be able to do this, i.e, are there any companies that will actually understand that this is for consolidation purposes only and help me to structure this better? Even if I don't end up saving that much each month, surely consolidating is the best option?

Any advice at all very welcome. I am a lawyer on a decent wage with good earning potential, unfortunately circumstance has meant I find myself in this position. I don't want to ruin my credit score with a debt management plan.

Any advice very welcome.

Many thanks

jonesMUFCforever

How much salary are you on - do you have any savings?
You are unlikely to get more than £25k unsecured loan so do you own a property - any equity in it there?

You need to go to the debt free wanabe board write out a statement of affairs - income and expenditure - you will be amazed how much you can save when you actually see where your money is going.

Scout_75

Hi,

Thanks for your answer. No savings, on £43k at the moment. I own a property, yes, but a bit wary of homeowner loans. As I say, two unsecured loans already. The remaining £18k it would be good to get into another loan...

Already done my budget etc and monitoring everything very carefully and making savings.

Thanks for your reply.

Tixy

Whilst you haven't said the amount of the existing loans it does sound like you will struggle to get a new loan to pay off the cards, because as you say your existing level of debts is high compared to your income.

If most of the card debt is on 0% then now would be the ideal time to work on clearing the card that is not. Have you tried working out a snowball calculator entering the cards, promo deals and standard APRs and see how long it will take to clear the debts as they stand currently, and how much interest you will pay.

Snowball calculator here - http://www.makesenseofcards.com/snowcalc.html
You might also see how much time you can knock off if you can up your payments by a few pound a month.

If you do still want to try to get a loan to consolidate the card and overdraft then I would try your own bank first. But I anticipate being declined.