Clearing overdrafts

Susie_Cooper

Hi - We want to clear our overdrafts and credit card balance. This will amount to about £10 000. Would anyone suggest that taking a loan and consolidating it into one amount be the best way forward or is taking more debt out the wrong thing to do. I dont want to go to the bank to ask for help because all they do is try to sell you products. Or does anyone have any other suggestions? Just tired of being in debt!!!
Many thanks

Candyapple

Read post #2 on this thread below and then write the answers to them in your thread.

https://forums.moneysavingexpert.com/discussion/5536512

foxy-stoat

Find out why you are £10,000 down, car purchase, holiday, monthly overspend, TV etc. If you have a handle on your monthly budget then over pay the highest interest debt first then the next and so on.

If your using the credit card monthly then everytime you pay £250 into the card call up the company and reduce the credit limit.

You will unlikey benefit from applying for a consolidation loan if you actually get approved for one.

ReadingTim

The only way to clear your overdraft and credit card balance is to spend less than you earn.

You can't borrow your way out of debt.

MallyGirl

Susie_Cooper wrote: »

Hi - We want to clear our overdrafts and credit card balance. This will amount to about £10 000. Would anyone suggest that taking a loan and consolidating it into one amount be the best way forward or is taking more debt out the wrong thing to do. I dont want to go to the bank to ask for help because all they do is try to sell you products. Or does anyone have any other suggestions? Just tired of being in debt!!!
Many thanks

you would still be in debt - you would just have moved it. This won't help you much unless the interest was much lower than your current debts. There is no easy way out

Dobbibill

Susie_Cooper wrote: »

Hi - We want to clear our overdrafts and credit card balance. This will amount to about £10 000. Would anyone suggest that taking a loan and consolidating it into one amount be the best way forward or is taking more debt out the wrong thing to do.

Unless you are cutting the interest you pay significantly then no, consolidation is not a good idea. It is not paying off the debt but merely moving it.

You are better to create a budget/SOA and work out how much you can throw at the debt.

Just tired of being in debt!!!
Many thanks

I doubt you accumulated £10k overnight and the same applies for getting rid of it. It's going to take time, determination and self discipline.

Do make sure you address the reason you have the debt, without doing this, the chances of it happening again are quite high.

This snowball calculator is handy for working out how soon it will take you to clear it.