Borrowing

luckybert

I need 3k to pay off debts. I'm overdrawn in two bank accounts and am paying interest on these. I realise I'd pay interest on the loan but I'd feel happier with a positive balance in both. I pay £25 a month off of 1 and then they charge me £6 per month in interest so it'll take a while to clear.

My option is to take out a 3k loan which I can get and repay £3100 ish

This is my best option right?

glentoran99

luckybert wrote: »

I need 3k to pay off debts. I'm overdrawn in two bank accounts and am paying interest on these. I realise I'd pay interest on the loan but I'd feel happier with a positive balance in both. I pay £25 a month off of 1 and then they charge me £6 per month in interest so it'll take a while to clear.

My option is to take out a 3k loan which I can get and repay £3100 ish

This is my best option right?

Where are you getting this ten year loan at £100 interest on £3k?

luckybert

Not sure where you got 10 year loan from.

I'd borrow £3000 over 2 years and the amount I pay back is £3142

Candyapple

Rather than trying to take out a consolidation loan, you need to look at working out a budget and paying off your debts from any excess money you have left over and head over to the DFW board:

http://forums.moneysavingexpert.com/forumdisplay.php?f=76&_ga=1.259958474.1308485190.1457440431

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

foxy-stoat

luckybert wrote: »

Not sure where you got 10 year loan from.

I'd borrow £3000 over 2 years and the amount I pay back is £3142

Assuming you can get 4.3% rate in the first place......

Why not use the £130.92 and pay down the overdraft each month, rather than paying only £25?

glentoran99

luckybert wrote: »

Not sure where you got 10 year loan from.

I'd borrow £3000 over 2 years and the amount I pay back is £3142

because you are only paying £25 a month = 120 months

luckybert

Sorry maybe I wasn't clear. One account has a balance of -£900 and I am paying back £25 currently.
The other account (my current one) I'm constantly overdrawn and therefore I'm thinking with £3000 I can clear the first account and be in a positive balance on account 2.

I hear what foxy stoat says about paying £130.92 to clear account 1 but that still leaves me short in account 2 whereby a loan of 3k makes me in the black on both.

TadleyBaggie

luckybert wrote: »

whereby a loan of 3k makes me in the black on both.

But you have a new 3K debt, so a status quo.

luckybert

TadleyBaggie wrote: »

But you have a new 3K debt, so a status quo.

like a lot of people then.

It just clears immediate problems and gives me longer to sort out finances or am I missing something.

chalkie99

The point you don't seem to have considered is that you currently only have £25 a month to throw at your debt but if you take out the new loan you will need to find £131 per month to pay that off.

Where is that £131 coming from? If you really had it you should be paying off £131 a month now - not £25.

luckybert

My £25 doesn't pay it off quick enough and as a result I'm being charged interest, which means my £25 is only worth £19 as they charge me £6 a month.

The other account charges me money too so with the 3k yes I have find £131 a month but I will avoid paying interest/charges on both accounts as at the moment the second account is my current account and so the figures are constantly moving with wages/direct debits etc.