Loan or not to loan paying off debts

MRDOLLAR

Hi there hoping you can help me.
I'm looking to have a bit more money per month for savings and for emergencies. I'm a new home owner with mortgage and getting married in May so looking to do the best with money and turn over a new leaf.
I was hoping to pay off existing credit card and car finance these are only debts I have.
I have a credit card debt of £6480.71
And I have been told I have an agreed settlement figure for my car of £2048.00.
My 0 % on card ends in June and I have a year on car finance at £129.00 per month.
I pay a minimum payment currently on card at £200 per month and car is £129.00 with a 21 months left.
I was thinking of getting a loan with sainsburys they told me it would be 8% apr and over 3 years with repayment of £270 per month.
Is a debt consolidation loan such as this worth it ?
What's your advice please thank you.

rockm87

Dont pay debt with more debt.

the best thing to do is work out your budget, and see where your money is going. Then you can allocate money to savings etc, or work hard to get rid of your debt early, and be free of it. Then you can save !

http://www.stoozing.com/calculator/soa.php

rising_from_the_ashes

Sorry but this bit doesn't add up .....

MRDOLLAR wrote: »

I have a year on car finance at £129.00 per month.
I pay a minimum payment currently on card at £200 per month and car is £129.00 with a 21 months left.

Is it a 12 months or 21 months that are left?


This site is full of stories of people who've consolidated (often more than once) and ended up with more debt

Much better to stick at it and keep plugging away - and look for a new 0% deal to move the c/card debt to when your existing 0% runs out

Kittycat1981

I wouldnt put my 0% debt onto an 8% apr loan. If you have been accepted for a loan, why not try and get different 0% balance card and keep the biggest portion of debt at 0%.

If you could get a Barclaycard 0% balance transfer for 35 months you could pay it off at £185 per month.

I would look at how could could cut back over the next few months to pay off the car finance quicker- once that is paid, either add what would have been the car finance payment to the credit card payment and get that paid off quicker too.

Doing a SOA and posting it on here, someone will pop along and make suggestions on how you could cut back.

I understand what you want to do, lower monthly payments= more cash in your pocket every month, but the debt would increase and the payment terms longer, the longer it takes to pay off, the more interest you pay.

My hubby was the same until i worked out just how much his initial bank loan was (way back many moons ago) and how much he has actually paid back, he consolidated and consolidated (even though there was no real reason to) - Now a days i never let him go to a bank appointment on his own - What turns from being an account review usually ends up in him coming away with a product that is completely useless to him (such as a packaged bank account AA breakdown etc and he dont even drive or have a licence) or a new bank loan- they see him coming and he cant say no (but i can and do!)

Good luck.

enthusiasticsaver

Do not consolidate. It is never a good idea to pay off debt with more debt UNLESS it is a significantly better rate and you do not take on any more debt afterwards. Obviously if the credit card is 0% and the deal runs out in June the best thing to do is as Kittycat suggests and get another long 0% deal. Pay as much as possible off every month and resolve not to use them again.

andyfromotley

You've had your answer,
Only switch this if you cannot, get another 0% APR deal. Just belt tighten and attack it.