Repaying debt advice

dk250

Just looking for advice on my current idea to start repaying my debt more Efficiently. I've previously posted up SOA and taken on advice from points made.

Current debt

Tesco loan settlement today £18988 - costing £434 a month for a further 47 months at 7%.

MBNA credit card - £2239.06 , paying £25 minimum payment 0% finished in April 2017

Fluid credit card - £925 balance - paying £25 a month 0% finishes in April 2017

Tesco credit card £2894 balance paying £30 a month 0% finishes Dec 2016.


I have a Barclaycard which has 0 balance and this months offers are
1.9% fee for a money transfer until Feb 18 or 2.9% fee for a balance transfer until Nov 18.


I can't get any other balance transfer cards but have been approved for a loan with nationwide - £14999 over 48 months at 4.1% or £20000 over 48 months at 5.1%. I could get Upto 25k if needed which would pay off everything and I could cancel all credit cards.

I am thinking of taking out the £14999 loan with nationwide doing a money transfer for £4K off my Barclaycard which would allow me to settle the Tesco loan.

Then I could transfer my MBNA and Fluid balance to Barclaycard and close these accounts ?

Hope it all makes sense just trying to pay as much as I can as quick as I can and get these debts under control and close
Unnecessary cards as I go

EssexHebridean

First step is to make sure you have a solid and workable budget, know what your monthly surplus should be, and that you actually HAVE the surplus your SOA shows you as having? Until you're in this position consolidation loans are generally not a good option, as it's a temporary fix plastering over the cracks that are the things that caused the problem in the first place. Can I ask whether the loan you already have is by any chance from consolidating in the past?

What is the interest rate on the Barclaycard?

EssexHebridean

Knew you rang a bell - I've just looked at your other thread.

All the advice you were given on there is still relevant - and as that SOA was only a few weeks ago, I don't think you will have got a budget working properly for you yet.

dk250

Tesco loan is a mixture of a car loan , Home improvements etc.
Barclays would be 0% interest for the durations mentions s

EssexHebridean

Yes, but the Tesco loan is as a result of consolidating previously, I think. Then you had unbudgeted moving costs last year that ran up some of the new debt?

If that Barclaycard is 0% then transfer over anything that has already finished its 0% period as a start - that Tesco card for example. If you have additional room on your credit limit on that one then shuffle what else you can to it as well - basically whichever of the other cards will have the highest interest when the 0% finishes is your priority. You MUST close the credit card accounts as they are zeroed off though.

Random yet entirely related question - when did you last spend on a credit card?

On the loan - on the face of it the Nationwide deal is a decent one due to the interest rate. I'd suggest getting a loan for as close to the exact amount you need (ie £18988 - so 19k loan, NOT "rounded up" to 20k!) to transfer the Tesco loan over to that, and then look to throw the extra you save on those repayments at the cards to get the balances gone there sooner.

Definitely DON;T add anything that you can move to 0% onto an interest paying loan though - you know from experience, it doesn't work!