Advice Please

Hoopylass

Hi there

I am looking for a bit of advice. I am considering a small loan of £3000 to pay off all my debt as Im sick of paying credit cards here and there. I have found a loan by Abbey. For £3000 over 5 years the repayments are £60.30 per month. The interest is 7.9apr which works out at £618 - total repaid is £3618.

Now the thing is I am due inheritence money in the next year (already waited a year and I would be in a position to pay off the loan completley....it says early redemption would be 2 months interest payments).

My plan was to wait until I got my inheritence and pay off all my debt but I am currently finding it hard and Im already paying £50 a month to one credit card.

So what do you guys think? Is this a reasonable thing to do?

MickMack

Don't know the details but here's a Tesco Loan at 6.7% APR

TAG

Can't you do a 0% balance transfer to another credit card?

southernscouser

Hoopylass wrote: »

Hi there

I am looking for a bit of advice. I am considering a small loan of £3000 to pay off all my debt as Im sick of paying credit cards here and there. I have found a loan by Abbey. For £3000 over 5 years the repayments are £60.30 per month. The interest is 7.9apr which works out at £618 - total repaid is £3618.

Now the thing is I am due inheritence money in the next year (already waited a year and I would be in a position to pay off the loan completley....it says early redemption would be 2 months interest payments).

My plan was to wait until I got my inheritence and pay off all my debt but I am currently finding it hard and Im already paying £50 a month to one credit card.

So what do you guys think? Is this a reasonable thing to do?

Hmmm. Be careful of consolidation. It can work but rarely does.

You really need to address why you got into debt in the first place otherwise it leads to a nasty spiral. Please learn from others mistakes. I've done the consolidation thing several times and it resulted in me being £34,268 in debt! :doh:

Also the trouble with most loans is that interest is front loaded, so you will end up paying the majority of it when you settle early anyway!

Also consider a low life of balance credit card. You could possibly get a rate as low as 3.9% and you can clear it whenever you want. Although beware minimum payments.

Why don't you have a look at this thread, then post your SOA over on the DFW board.

Hoopylass

Thanks for the advice, Im careful with money to a certain degree and the majority of the £3000 is actually vets fees as my insurance company wont pay out, and the rest was accumilated from when I moved into my flat (first time buyer).
Trust me it wont spiral out of control and thanks for the advice