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Best options to consolidate loan & overdraft
JOJONES2304
Posts: 2 Newbie
in Loans
Hi
I'm new to this forum and would love any advise about how best to consolidate / pay off a £10,500 personal loan (currently over 5 years) and a £1,000 overdraft. I'm paying £213.04 per month off on my loan & getting nowhere fast with shrinking the overdraft.
I have a mortgage & work 30hrs a week with 2 children under 9
Andy advice would be so appreciated - am feeling quite at my whit's end with it all now.
Jo x
I'm new to this forum and would love any advise about how best to consolidate / pay off a £10,500 personal loan (currently over 5 years) and a £1,000 overdraft. I'm paying £213.04 per month off on my loan & getting nowhere fast with shrinking the overdraft.
I have a mortgage & work 30hrs a week with 2 children under 9
Andy advice would be so appreciated - am feeling quite at my whit's end with it all now.
Jo x
0
Comments
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Post a statement statement of affairs on the debt free wannabe board, detailing your income & outgoings for the month. People there will be able to point you in the right direction of where you can save each month...Dwy galon, un dyhead,
Dwy dafod ond un iaith,
Dwy raff yn cydio’n ddolen,
Dau enaid ond un taith.0 -
Consolidation loans rarely work so there is no best way. The best approach would be to address you debts in a different way by cutting back spending and throwing extra cash at your debts. As suggested, post a SOA and you will get some good advice on getting things under control.0
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Hi Jo,
Welcome to the forum.
You have done the right thing asking for advice.
As others have said posting a SOA on the DFW board will be the best place to get support and with the SOA posted they will be able to provide tailored advice specifically to you.
Consolidation doesn't work - there are plenty of examples all over the forum.......life always throws in a curve ball and best intentions get disrupted. Consolidation is not paying off, it's just moving the debt and rarely at a better rate.
How long have you had the loan?
How long do you have left on it?
What, if anything has changed since you took it out?
Do you have any excess funds you can use to reduce the overdraft? even if it's just a few pounds a month.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
As above. Chances are you'll be overpaying for something, probably several somethings, and by reducing your outgoings which the guys on DFW board are good at doing, it frees up money to repay your outstanding borrowing faster.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Hi JOJONES - I'm here to pretty much say the same thing really. Consolidation is basically just making the same debt into a much longer one. How much have you paid off so far?
Take a look at my thread somewhere, it's entitled Unsure whether to consolidate please advise.
I started it in December but after the advice received on here, I decided to tackle my debts head on and overpay whenever I could.Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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