Advice please...

henrypootle

Basic scenario - I have overdraft /store card /credit card debt of nearly £3000.

Put money into joint account for bills etc so all that is covered. This leaves me with approx £200 per month.

I'm wondering whether to get a loan for the 3k (my bank would be 120 per month for 3 years) as I keep paying fees / minimum payments etc and not getting anywhere! I haven't got enough to really start chipping away at the debts. Thinking wipe the slate clean, one payment per month, no overdraft or credit card to worry about.

Any advice?

[Deleted User]

Not enough information to say.

How much do you owe, at what rates?
What is your income?
What do your credit file shows?

If you can get a loan to consolidate, it doesn't wipe the slate clean. It just buys you a new dirty slate.

mrputney08

henrypootle wrote: »

Put money into joint account for bills etc so all that is covered. This leaves me with approx £200 per month.
QUOTE]


..as spending money for luxuries etc? I'd be inclined to put this towards the amalgamated debt where at all poss.
I'm against any sort of borrowing 'from Peter to pay off Paul', so no, I wouldn't borrow to pay off your original debt UNLESS interest rates somehow work out better for you and it is cheaper to do it this way..but I doubt it. I've never looked into using one debt to pay off another so can't advise how you'd go about it, it all depends on personal circumstances at the time. I'd be inclined to stick to the one debt and focus on really paying that off as you are able.

redpete

henrypootle wrote: »

Basic scenario - I have overdraft /store card /credit card debt of nearly £3000.

How many accounts, what interest rates, fees and balances?

Put money into joint account for bills etc so all that is covered. This leaves me with approx £200 per month.

£200 available for paying off debt?

I'm wondering whether to get a loan for the 3k (my bank would be 120 per month for 3 years)

Do you knowyou will get this deal? Would you be able to use excess cash to overpay? How does £120 a month compare with your current minimum payments?

as I keep paying fees / minimum payments etc and not getting anywhere! I haven't got enough to really start chipping away at the debts. Thinking wipe the slate clean, one payment per month, no overdraft or credit card to worry about.

Any advice?

wipe the slate clean - not really, you would still owe the money.
one payment per month - is handling several payments really giving you problems?
no overdraft - given the way banks charge daily / weekly / monthly fees this is probably good, but how does the loan % compare with the overdraft fee + %? How will you guarantee that you won't spend into the overdraft again?
no credit card - will you be cutting up the CC to ensure you are not tempted to spend on it and build up the debt again?

Foxy-Stoat_3

You have £200 a month spare, why not use some of this to clear down the debt.

£120 a month for 36 months is £4320 so the interest rates are a bit high, I borrowed £8,000 over 24 months a few years ago and the total interest was only £800 or so.