Debt Advice please

Fendt

Hi everyone,

I am new to this site and this is my first post. I have significant debt. Its in different banks and countries so I will just break this down into small parts and discuss two debts that I have. I have an outstanding credit card bill of about £1300 that I will hopefully have paid off in 4 months. I also have an UK bank loan of £9600 with an interest rate of 20%. The reason for the high interest rate is that I have not had a loan in this country before and had no credit history. This loan is over 5 years. The bank says that as I make the repayments and build up a credit history then the interest will decrease. I can make the repayments. My question is does anyone have a suggestion as to how I could better structure these debts?

Thank you in advance

sourcrates

Hi,

Well you say your hopefully going to pay off the card in four months, so that will only leave the loan.
Assuming it's an unsecured loan, then you won't have the option to "restructure" it, as it will be a fixed term agreement.

The only way you could do it, would be to borrow again, at a lower rate, and repay the first loan.
This would be a bad idea as it would end up costing you hundreds more in interest, that's assuming you could borrow again with little credit history, which is unlikely.

I would just stick it out to be honest.