50% of borrowing - should i think about doing it?

beardybryn

I am in a bit of a dilemma.

I went to HSBC (my bank of 35 years) to consolidate my loans. I first enquired and applied overseas but since returning they have decided that my interest should be 16.9% which means the repayment is a whopping 50% on the borrowing.

Now i have tried Credit Expert to see why but it is not allowing me to update the number - yeah all the details but not score.

Now the question is, if i go an investigate a free balance transfer on my CC and overdraft somewhere else will the fact that I applied for loan be a black mark on the credit score stopped me from doing anything - resubmitting the loan.

I want to find the lowest payment so wish to investigate but i worries me that every time i investigate i get a mark against my name.

Please help I am trying to get out of debt as i say by lowering my payments but the banks are forcing me to build up bigger debts over long periods of time.

Any advice would be great.

HappyMJ

If you're getting offers of 16.9% on unsecured personal loans then it's probably unlikely you'll get the top rated 0% on balance transfer cards so I would not apply.

I would look at snowballing the debts paying the cards that charge the highest rate first with all of your income and then as you've spent all your income making overpayments using a 0% on purchases card to buy things with which will slowly transfer your debt to a 0% card.

CLAPTON

yes, its worth trying for a 0% BT CC
it's also worth reducing your spending and trying to increase your income

dresdendave

CLAPTON wrote: »

yes, its worth trying for a 0% BT CC
it's also worth reducing your spending and trying to increase your income

Excellent advice from Clapton, particularly the second part.


Think about it, why do you have debts? Because your outgoings have been more than your income and the banks have made up the shortfall for you.


Reversing this situation is the key, not trying to borrow your way out of debt.