Advice needed loan/ consolidation

neilr1975

Hi all

I am currently rebuilding my credit score but I am now wondering if i would be better off paying off my CC (£650) and another cash advance card (£100) by taking out a small loan (£1500) to consolidate these cards, cancel the cash advance card and (£150) on a payday loan that I have been paying off for months now.

I wondered if this would be better than slowly repaying over time. Monthly repayments would not be an issue.

Thanks for any advice.


Neil

[Deleted User]

It all depends on the rates and whether you can be disciplined.

But the less interest you pay and the quicker you pay back, the better.

DCFC79

Good luck on focusing on the score yhat lendrs dont even see. As above you need to be discinclined to make it work.

eschaton

neilr1975 wrote: »

Hi all

I am currently rebuilding my credit score but I am now wondering if i would be better off paying off my CC (£650) and another cash advance card (£100) by taking out a small loan (£1500) to consolidate these cards, cancel the cash advance card and (£150) on a payday loan that I have been paying off for months now.

I wondered if this would be better than slowly repaying over time. Monthly repayments would not be an issue.

Thanks for any advice.


Neil

Am I right in saying you have £900 to pay off?

If so, how about a £900 loan?

Borrowing an extra £600 to put you in even greater debt does not solve problems, it creates them.

foxy-stoat

Try to increase your monthly payment to the payday loan, sell stuff, down value your car. You wont get offered a good rate of interest on such a small loan.

Maybe a credit card with low balance transfer rate would be best, if you can get one.

enjoyyourshoes

General advice is don't consolidate, but with lots of 0% transfer and 0% interest, these are well worth it.

But

Ensue you set up DD to pay off amount by end free period and don't spend on the card

Dobbibill

neilr1975 wrote: »

Hi all

I am currently rebuilding my credit score but I am now wondering if i would be better off paying off my CC (£650) and another cash advance card (£100) by taking out a small loan (£1500) to consolidate these cards, cancel the cash advance card and (£150) on a payday loan that I have been paying off for months now.

As previously said, why are you looking to increase your debt from £900 to £1500. This is the very reason consolidation loans rarely works.

Make sure you address the issue of why you got into debt in the beginning. What will stop the same thing happening again?

You may struggle to get further borrowing at decent rates for debt consolidation anyway and with a PDL in your history.

Throw every penny you can at the highest costing debt first while maintaining minimum payments on the others and when one finishes, throw that money at the next debt as well as the minimum payments and so on until they are all gone.