Large loan + Cards = where to start?

MKat_3

OK, after years of costly professional studies, I now have a job and am in a slightly more secure position to sort out my mountain of debt. This question is similar to the "save or pay off mortgage" question - what should be the priorities and where should I start?

I have a study Loan = £26k (on 11% p/a with an 'understanding' bank) to pay off. Credit Cards = £9k to pay off.

My only major outgoing is £1000/month on rent.

Should I 'consolidate' the debt?
Could I get a mortgage and add my debt to that (to stop the rent waste/get on the ladder/possibly earn revenue from renting a room)
Should/could I move the loan to a cheaper rate, and who is best/most flexible/cheapest for this amount?
With whatever small amount of money I have left each month now, should I save it, pay more into my credit cards or more into my loan?

What are your views? Martin? Other forum posters?

RAS

Hi

We need to know the APRs on all those credit cards and load for other info about your outgoings. You eat?, buy clothes, travel to work, so they all ned to go in you SOA. see southern scouser stickie here

http://forums.moneysavingexpert.com/showthread.html?t=107280

And NO, do not consolidate.

Amongst other things, it is likely that as a new professional your income will increase and you will be trapped by old debts that you cannot pay off.

MKat_3

Hello,

Thanks for responding.

So the loan is 11%.
£4400 on an Egg card which was originally a 0% balance transfer, and now seems to be costing me a small fortune each month. (1.5% each month)
£1700 M&S at 4.9% for life of balance
£3600 on BA card at 4.9% for life of balance.

I have been a credit card 0% 'tart' but have 'dated' so many cards I think my credit reputation is not very good now. I know I won't be able to pay off these card debts within 9 months which are the longest 0% deals. Should I still go with them and try and switch again, or find another low rate for the life of the balance deal?

As for your other questions Ras - I spend about £25/week on food, am determined not to eat out as much now, don't smoke, don't drink, have got rid of the car, am strict with myself on clothes and buy them rarely, and just tube it to work within 2 zones.

Thanks!

Tr@cker

Thats a pretty austere lifestyle. Not sure what you mean by 'understanding bank' but 11%-i presume thats APR-is well above the best rates.
You arn't going to better 4.9% LOB anywhere especially with interest rates nudging upwards but depending on the length of term left on the loan i WOULD consider consolidation.
If you can get somewhere near the best rate-around 6.5%-consider taking a loan to cover the lot over the shortest term you can afford the repayments on. I take it you haven't missed any payments on anything the other thing is dont rack up any more debt on the cards or get rid of them and maybe try for a single low-limit card for emergencies.

Tr@cker

Forget that last post mate as far as i know you can only get unsecured loans up to 25k. Dont know what the terms of your loan are whether flexible or (more likely) rule 78 but it might still be worth looking around for something cheaper on your main debt there'd be a lot of difference in repayment on the best deals and 11%.