Consolidate or not?

redviking

Apologies, Not sure if this the right place for this thread, could it be moved if not.

I am posting as I am looking at whether it is worth consolidating my current outstanding debts, or leaving them as is for now.

I am able to make all payments fine, never missed a payment and monitor my credit file regularly, with score of 974, whether this makes a difference i'm not sure.

Currently my outstanding debts with terms are:

Lloyds loan £4,812.40........20 monthly payments left at £239
Ratesetter Loan £2,805......31 monthly payments left at £95
Barclay Credit Card £3355...Regular payments made, on standard rate now
Natwest Credit Card £1465..Regular payments made, on standard rate now.

I occasionally use the Natwest card as a back up, and have already transferred some of the balance in the past to the Barclay card.

So is it worth actually consolidating them all, considering the terms on both loans. I also have a store card with £300 outstanding on 0%, which I could pay off tomorrow, that's why not included it.

Thanks, Steve

Tixy

Hi

It depends on what the APRs are on the existing debts, what APR you could get on a consolidation loan (if you are able to get a consoliation loan for the amount needed).

An alternative might be to try to tart the card debts somewhere else again if you can get another 0% deal on purchases.

[Deleted User]

Before you get to the issue of whether you should, you need to address whether you can. With debts of around £13k, you'd need a very good income to get a further loan of a similar amount to cover them.

Then you need to look at the rates you're paying. No point in paying off a 5% loan with a 10% one.

[Deleted User]

Ooh. It really annoys me when Tixy waits for me to post, copies it, puts it more succinctly and then goes back in time to make it look like she posted hers before mine.

redviking

Thanks for the replies

The Lloyds loan is 7%, The Ratesetter Loan is 9.9%

[Deleted User]

redviking wrote: »

The Lloyds loan is 7%, The Ratesetter Loan is 9.9%

Those are pretty low rates. Given the amount of debt you're already carrying, I doubt you would do much better with a further loan.

As Tixy suggests, perhaps just look at whether you can get a 0% card deal.

redviking

I will look into that then. Its just annoying having them now, I have a decent job and can afford all the payments....Just thought I would try and see if there was a cheaper way.

Thrugelmir

redviking wrote: »

I will look into that then. Its just annoying having them now, I have a decent job and can afford all the payments....Just thought I would try and see if there was a cheaper way.

For a few months make a determined effort to cut your outgoings and pay down the debt quicker.

While life is rosy now, the future could take a turn for the worse. That's when many people find servicing their debts becomes a real problem.