Best way to clear my debt

february66

Hope someone can please give me some advice.
I currently have the following debts:

Coop Loan 12,300 monthly payment 245.00
MBNA credit card 6700 80.00 per month
Lloyds credit card 4500 80.0 per month
overdraft 7000 93.00 per month
mortgage 142000 788.00 per month

I am currently paying all these loans monthly. The credit cards on 0% interest.

However I would like to see if I could consolidate some of these loans and reduce my monthly payments. I cannot remortage as my wife and I are both self employed and we don't earn as much as we did when the mortgage was taken out in 2003

Not sure if I have supplied enough information but would appreciate any advice.

Thanks

Tixy

Hi and welcome to the forum.

Are your repayments on the cards just the minimums? and on the overdraft just the charges/interest?

Have you worked out how much you can afford a month towards these debts? The problem with trying to reduce the monthly payments is that its likely to cost you more in interest overall, especially as some of your debts are currently on 0%.

The problem you are likely to face will be finding a lender willing to offer you a new loan on top of your existing debts. Whilst you intend to consolidate a lender will usually consider if you can afford all the repayments on the old and new debt (in case you don't actually use it for consolidation).

What is the APR on your loan? how recently did you take that out?
How long are the cards 0% and what APR do they increase to after the 0%?

february66

The credit cards are just above the minimum and the overdraft is just charges and interest.
The loan was taken out two years ago and the APR is 9.9% and there is 5 years left of this loan
The credit cards have 18 months left at 0% each. the Llloyds card goes up to 17.95 % after the offer ends. Not sure about MBNA

Tixy

Are these debts all in your name or any in your wifes?

I imagine you might find it difficult to consolidate them, and especially without it costing more in interest.

Are you struggling to meet your repayments at the moment? have you tried going through all your income/outgoings to see if there are any other changes you could make, any places you could save money?

chevalier

Here is the link to the SOA calculator
http://www.stoozing.com/calculator/soa.php
Once you have filled it in, you will have a much more detailed idea of your financial situation. If you format it for MSE then you can post it on here. We can then offer you more detailed suggestions. Even if you don't feel comfortable posting it on here, having a clear picture of your situation, will be invaluable to YOU.
good luck
chev