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Debt Consolidation Help

sophieg_2
Posts: 3 Newbie
in Credit cards
Hello,
I'm after some advice, I want to try and consolidate some of my debt, I currently have 2 credit cards (both at 18.9% apr) one is with Lloyds (£1k) and one is with Barclaycard (£2.5k). I also have a loan with my bank (20.9% apr) for £5.5k. I'm wondering whether the best option is for me to shift the credit cards to a 0% interest credit card or to extend my loan to pay off the cards, I can get the additional money at the same rate and would be able to pay an additional £200 per month on top of my repayments in the aims to cut the interest and pay the loan off quicker...
When shifting the debt to a 0% card, is there a limit on the amount you can transfer?
Are there benefits to either option?
Thanks in advance for any advice.
I'm after some advice, I want to try and consolidate some of my debt, I currently have 2 credit cards (both at 18.9% apr) one is with Lloyds (£1k) and one is with Barclaycard (£2.5k). I also have a loan with my bank (20.9% apr) for £5.5k. I'm wondering whether the best option is for me to shift the credit cards to a 0% interest credit card or to extend my loan to pay off the cards, I can get the additional money at the same rate and would be able to pay an additional £200 per month on top of my repayments in the aims to cut the interest and pay the loan off quicker...
When shifting the debt to a 0% card, is there a limit on the amount you can transfer?
Are there benefits to either option?
Thanks in advance for any advice.
0
Comments
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Consolidating all debt is very dangerous, because the trap is you'll take another credit card out, or keep using the one you transferred a balance form, then 2 years down the line you are attempting to consolidate a much bigger debt again.
I did this personally for about 10 years, my final consolidation was about 10,000 about 5 years ago.
I cut up the cards, moved the balances to new 0% ones, cut those up too and paid it off as I went.
Trust me, it's a lot easier in the long run to deal with them rather than consolidate a total debt.Non me fac calcitrare tuum culi0 -
What's your plan to reduce and repay the debt?0
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Hello,
I'm after some advice, I want to try and consolidate some of my debt, I currently have 2 credit cards (both at 18.9% apr) one is with Lloyds (£1k) and one is with Barclaycard (£2.5k). I also have a loan with my bank (20.9% apr) for £5.5k. I'm wondering whether the best option is for me to shift the credit cards to a 0% interest credit card or to extend my loan to pay off the cards, I can get the additional money at the same rate and would be able to pay an additional £200 per month on top of my repayments in the aims to cut the interest and pay the loan off quicker...
When shifting the debt to a 0% card, is there a limit on the amount you can transfer?
Are there benefits to either option?
Thanks in advance for any advice.
the lower the interest rate the better
the more you repay each month the better
so getting a 0% BT CC, if you can, is a good idea
transferring CC debt at 18.9% to a loan at 20.9% makes no sense0 -
You have to keep in mind that you may not get a 0% credit card they are usually reserved for those that have a good credit history.
The fact your own bank gave you a loan at such a high interest rate would suggest that your past credit history has not been great. Was the previous loan for consolidation as well?
But to transfer debt that is at 18% to a loan at 20% is not cost effective.0 -
If you have the means to pay, why bother consolidating? That's usually the pathway for people struggling to maintain their monthly payments.
If you can afford another £200 a month, throw it at the card with the £1K balance; when added to your usual payment you will smash it in four months. Then use this money to overpay the second card, at approx £300 a month this will be gone in 8 months maximum.
Of course if you manage to get a 0% card this process will be faster.
Then enquire if you can make overpayments to your loan and if not save up the outstanding balance and pay off in full.
Use the snowball calculator to find out your debt free date.
http://www.stoozing.com/calculator/snowball-calculator.php0
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