Should I get a loan? Apply online or in branch - is there a difference?

marky0077

I bank with Santander and currently have 2 overdrafts totalling £2500 and a personal loan (with Santander) with approximately £3500 left on it to pay. I also have £3000 on my Barcalycard. The total payments for these debts amount to £300 per month. Am I thinking right to apply for a loan to consolidate these and lower my monthly payment?

My credit history is very shady. I got myself into a lot of trouble a couple of years ago and have something that stays on my file for 6 years I think. I've been clean for 2 years now and successfully applied for 2 credit cards and kept them in order for over 6 months now in an attempt to rebuild my credit history.

My question is this: assuming applying for a loan is the right thing to do - does it make a difference if I apply directly in branch (Santander) or if I apply online? My thinking is that if I deal directly with a person then they can see what I intend to do with the money and I can explain my case better - or does it make no difference? In which case should I steer clear of Santander and go elsewhere as Santander are earning nicely out of me already?

Lots of questions. Appreciate anyones time out there. Thanks in advance.
Mark

CLAPTON

it's best to pay as little interest as possible
so
having debts with the lowest APRs possible is a good thing
paying the debt asap reduces the total interest and is a good thing

without knowing the APRs of your current debts it's impossible to say whether refinancing is sensible

how much do you earn?

gb12345

As clapton said, without knowing the APRs its impossible to say whether refinancing would be a good option (it seldom is).

By my calculation, you currently have £9,000 of debt, so any new loan would by underwritten for £18,000 (the existing debt plus the new application) so you would likely need a salary of around £36,000.

Add to that a "shady" credit history and it doesn't look good.

bargainbetty

Do either of the cards offer 0% transfers or low-life-of-balance deals? You may be better off trying to transfer the funds over to lower APRs using your existing lines of credit and bring down your overall debt (including your overdraft). When that is down to £0 and you are fully living within your means, you might have a better chance at refinancing the remaining CC debts.

Be warned though, if you do try to consolidate your loans, cut off your overdraft and cancel your cards once paid off. The biggest problem most people face is the risk of leaving them open and slowly running them up again. If you haven't learned to live within your means, it's a guarantee. I know, I did it twice.