Consolidating all debt into one loan - worth it>?

airking

bargainbetty wrote: »

Why not? I did it twice. Unless you change your spending habits and close the cards, there is a risk that they will fill back up, bit by bit. You wouldn't be the first and won't be the last to say it would never happen and then find you now have two debts.

The best idea would be to do a full statement of your accounts, working out where you are spending money and if you are living within your income. If you aren't, cut back because refinancing your debt won't solve the problem. If you are living within your means, then throw all your spare money at the debt with the highest interest. Getting those debts onto 0% cards would be better than a loan that charges interest.

Good luck!

Again I understand peoples skepticism but I am living well within my means, I've cut back to the bones, my gas/electric and water are cheap as I can get them, food bill is tiny... so while I understand, trust me I have no intention of using the credit card again.

while I again get peoples skepticism I really was after advice on the best way to reduce my credit card, my partners and the car finance (2500 left to pay over around 2 years). The loan seems like a bad option, so 0% card best option for the 3000 (over two cards of mine and my partners) best option?

airking

ShirePiskie wrote: »

If you get a loan and say it's for 'consolidation' that can be a bit of a flag for future credit. It can look (rightly or wrongly) as if you can't manage your finances.

thanks thats really one of the points I was wondering about, I think best option will be for me to get a 0% card. This less of a red flag?

thank you

airking

ShirePiskie wrote: »

The issue with a loan is you can be tied in to their terms as to how long you're paying it off, it depends what is more important to you - being debt free sooner of having more money a month.

Personally I would rather 'bite the bullet' on paying off all I can in a shorter period of time. Then you can spend all your money how you want, rather than handing it over to someone else!

Someone may be able to help, but I'm sure I've seen mentioned an online calculator that will show you how much interest you pay on different debts over their lifetime, when really you want to be paying OFF the debt itself.

Yea I'm with you, I've been selling all unused items etc, reduced my energy bills massively etc,.. I have 2000 on my credit card, my partner has 1000... Is the 0% card 0% for a limited period?

airking

Been looking online on Lloyds (my current bank) and found the Lloyds Bank Platinum Credit Card -
Saving - 0% for the first 15 months* on balances transferred in the first 90 days.**
Our lowest standard balance transfer fee of 0.70% applies on balances transferred within the first 90 days, 3% fee applies thereafter.

This seem a good option?

Would I then after the 15 months move to another 0% card? how does this affect credit history?


Thank you all for the replies, as abit of a noob I appreciate it

CLAPTON

the best option is to pay a little interest as possible over as short a time as possible whilst ensuring you can afford the monthly payments.

at the moment you haven't said what the APRs of the CCs are or the terms of your car loan (APR and any early redemption fees)
neither have you said how much you can afford to repay each month


it is however likely that transferring your CC debt to a 0% BT card would save you money
what you do with the car debt depends upon the details: but note that you can't usually pay a car loan off with a CC unless it's one that allows BT to your current a/c (e.g. MBNA stable)

airking

CLAPTON wrote: »

the best option is to pay a little interest as possible over as short a time as possible whilst ensuring you can afford the monthly payments.

at the moment you haven't said what the APRs of the CCs are or the terms of your car loan (APR and any early redemption fees)
neither have you said how much you can afford to repay each month


it is however likely that transferring your CC debt to a 0% BT card would save you money
what you do with the car debt depends upon the details: but note that you can't usually pay a car loan off with a CC unless it's one that allows BT to your current a/c (e.g. MBNA stable)

Having looked at the barclaycard 33 month 0% this looks like a good option, would be able to pay the 2000 off in this period, would be 60 fee. Currently paying 19.94% which is shocking.

AFK_Matrix

Just be prepared that you may well not get the full 3k your after on the CC. You won't know your limit on the CC until you actually get it so you may only be able to transfer some of the debt. But if your credit file is good etc you could leave it a couple of months and try for another 0% CC.

FireWyrm

airking wrote: »

They really wouldn't

We all start out with good intentions, but the general consensus of opinion is that consolidation doesnt work. You just end up going round and round again. Most of us have been on this treadmill at least twice, and some more than that, me included. It takes a supreme act of will to make consolidation work and if you are going down this line, you absolutely must cancel and destroy all credit cards or you will end up right back where you started again.

airking

AFK_Matrix wrote: »

Just be prepared that you may well not get the full 3k your after on the CC. You won't know your limit on the CC until you actually get it so you may only be able to transfer some of the debt. But if your credit file is good etc you could leave it a couple of months and try for another 0% CC.

Thank you, I think now I will cover my 2k (hopefully with the 0%) and get my partner to cover 1k with her own one. I believe my credits good so fingers crossed, I just want some light at the end of the tunnel, having a set 33 months to clear it is nice goal, be debt free.

thanks for the reply

airking

FireWyrm wrote: »

We all start out with good intentions, but the general consensus of opinion is that consolidation doesnt work. You just end up going round and round again. Most of us have been on this treadmill at least twice, and some more than that, me included. It takes a supreme act of will to make consolidation work and if you are going down this line, you absolutely must cancel and destroy all credit cards or you will end up right back where you started again.

I think looking into what everyone has said, a 0% card seems best option and closure of the card the balance is coming from