Loan to pay of CCards

adamthegreat

Hello all.

Would love a little advise

I have

£1700 on Vanquis (39.9%?)
£950 on Aqua (39.9%?)
£1000 on Lloyds Duo ( 17.9%?)

Oh, and £500 overdraft (ish)

I am able to pay about £400 a month off the cards, but with interest its probably only taking less than £100 of each, each month.

Would you think taking a loan out for about £4500 to pay it all off a sensible idea? With Lloyds who I am already with, that's about £230 a month over 2 years

I get very stressed with working out all the payment dates and what I can afford to pay each month, So maybe just 1 loan payment would be a lot easier.

Any advise would be great, :money:

Thanks

Apples2

Depends on your credit file.

With both Vanquis and Aqua (both sub prime) on high APR's coupled with living in your overdraft, it is unlikely you would be accepted for a loan so don't get your hopes up.

adamthegreat

Yes.. My credit score was low when I took out those cards. Now its an average score due to the fact im living off the overdraft.

I don't want to apply and hurt my credit score, unless I think I will be accepted.

Im just fed up of paying 3 cards every month.

Tixy

Have you actually applied for a loan with lloyds and been accepted? Is the £230 based on tailored quote from them? or are the numbers based just on the representative APR?
If they have offered you a loan what APR is it at?

If you can pay back £400 a month then why were you thinking of a loan paying back only £230?

In theory moving debt to a cheaper APR is a good idea if you are able to get accepted for such a loan, and providing you cut up the cards and don't run up any additional debts. But reducing the amount you pay each month isn't usually a good idea.

gb12345

adamthegreat wrote: »

Yes.. My credit score was low when I took out those cards. Now its an average score due to the fact im living off the overdraft.

I don't want to apply and hurt my credit score, unless I think I will be accepted.

Ignore your "credit score" it is just a made up number that the CRAs feed to the gullible to make them feel good.

What matters is what is on your credit history - any defaults, late payments, CCJs? Are you on the Electoral Roll and what your salary is.

adamthegreat

Its the representative APR, I know this will change.

Its not that I want to pay less each month. Its just I would rather pay one debt and a smaller amount may be less worry.

adamthegreat

No Missed payments, CCJs, Defualts. On electrol roll, and salary of £14500

gb12345

adamthegreat wrote: »

No Missed payments, CCJs, Defualts. On electrol roll, and salary of £14500

To have a realistic chance of being accepted, you would need a salary of c. £18k, as you will be underwritten on a £9,000 debt.

adamthegreat

Ah ok. Thanks. As I say, I don't want to apply just to be declined.

Tixy

There is perhaps a small chance of acceptance.

Assume the overdraft is also with lloyds? if so then of the £4500 you already owe lloyds £1500. So from lloyds point of view its an additional £3000 of credit on top of what you owe them now, assuming you make it clear to them that you are happy for them to cancel your overdraft and credit card. Might be worth applying in branch because of this.

It could be worth applying but of course there is never any guarantee that a lender would accept you.
There shouldn't be a major issue with making this one application even if you are declined.

gb12345

adamthegreat wrote: »

Ah ok. Thanks. As I say, I don't want to apply just to be declined.

How do you split the £400 that you currently pay between the cards?

If you aren't already, pay just above the minimum each month to the Lloyds card and more towards one of the higher APR cards - that will clear it quicker than if you are pro-ratering the payment based on balance. When you have cleared the high APR card put the money that you are saving each month towards the other card and clear that. Then you can concentrate on the Lloyds card or o/d depending on which costs the most.