The best possible bad news

Daveo1983

So this is more in the nature of, overall, not that bad, but also not great, but it could have been muuuuuch worse.
Had a bit of a financial knockback @ work, also having to move as I've been given notice to vacate recently.
So basically, this has hit the ol' pocket hard.
Recently paid off a loan, and a credit card, however, still got three other cards with a total of about £3500 total, outgoing payments of £230 per month.
Can't afford that any more!
So had to go to the bank and get another loan (consolidation), to reduce the overall outgoings.
And they were very nice and understanding and agreed to another loan over 4 years which will clear all the cards, and my outgoings have dropped to £110 p/m as a result.
So not great, but it could have been worse.

This is me being positive....

Luck to all!

lee111s

Just make sure you don't build up any more debt, and if you can afford to, there's nothing to stop you making overpayments to the new loan to clear it quicker, and save yourself some interest.

thegrind

If it works for you then go for it.

Just cut the cards up though.

If you do come into spare money and your lender allows try to whack a chunk off the balance so you'll be charged less interest overall.

Just don't spend on them cards or you'll be looking at square one plus more debt.

ReadingTim

thegrind wrote: »

If it works for you then go for it.

Just cut the cards up though.

If you do come into spare money and your lender allows try to whack a chunk off the balance so you'll be charged less interest overall.

Just don't spend on them cards or you'll be looking at square one plus more debt.

So really, you need to:

• clear the balance(s)
• cut up the card(s)
• close the account(s)

Not doing the last one (then spending up to the limit again on the balance you've just cleared with a loan) is what gets most people into trouble, effectively doubling their debt

Jon_B_2

Cut up the cards and don't apply for anymore credit.

enthusiasticsaver

So now you are going to have to pay back £5280 (48 *£110). This is unfortunately the start of a slippery slope unless you address the reasons you got into debt initially. Reducing outgoings due to change of circumstances is one thing but it would have been better doing it by reducing interest rates. What rate are you going to be paying on the loan and is it better than the credit cards?


I would echo others' advice in that you cut up the cards and start to live within your means by budgeting and start to build up an emergency fund so you have that to fall back on when hard times strike rather than the credit cards. Good luck.

Daveo1983

Unfortunately the reason for the original debt was unavoidable.
I reckon I can have the loan paid off in about 19 months (life laundry - I own a lot of crap that people will pay stupid amounts for apparently!). So saving on the interest that I have to pay on the loan.
Int on loan is something like 14.9%, whereas on the cards it was 29%. And I'm not going into detail about my credit rating on here - I've seen the trolls going to town on people who have done that!
So basically, as opposed to not being able to pay back what I owe at all, it is actually good news.... :-)

chrisw99

I notice a lot of people have said cut up the cards. Either write down, or take a photo before you do though!
I took out a couple of cards for a balance transfer deal, and I cut them up so I wouldn't be tempted to use them.
Then months later an even better balance transfer offer came in on another of my cards, and when I came to transfer from one of the cut up cards it asked for expiry date, which as far as I know is not on a statement or anywhere else. I ended up having to say my card had got damaged and requested a new one, just so I could balance transfer from it!

Daveo1983

Bad luck Chris - hope you got the better rate in the end though?

Cheers!