Debt solution?

enthusiasticsaver

What are the interest rates and terms of the loan? Have you tried contacting the lenders to extend the term to make it more affordable?

enthusiasticsaver

11% is not great but the debt is unsecured so not the worst. I doubt any new loan would come in at a better rate. Your best bet is either to increase your income by taking on a second job, reduce outgoings or restructure the loans over a longer repayment period.

-taff

It would be possible for you to get another loan, potentially, to cover what you owe at the moment.
The trouble is, you are borrowing more money to pay off money you already owe.
That may make perfect sense to you at the moment, but the trouble with that is, you have no idea what the future will bring. You could lose your job, you could have to help your parents again, you may have an emergency etc, so you're gambling on borrowing more money that you will always be able to repay it. As far as consolidation loans go, that usually means you're in a worse position a few years down the line.

If you can absolutely gurantee that these loans are your only debt, and will be your only debt [ so no new cars, no buying a house, no credit card debt etc] then getting a larger loan would be fine for you.

But you should understand that you won't be paying back less, all you'd be doing is extending the period that you owe this money for, and probably end up paying more back.

You already owe more than half of your wages on the UK loan, so if you did apply for another loan, they would take that into consideration and the rate you want to borrow at won't happen, you'll have a much higher rate.

There's no way of avoiding paying this, and not much chance of a single loan to cover both outstanding loans because you just owe too much compared to what you earn.

Your options are basically, carry on paying them off, or throw more money at them to pay them off sooner, or go down a DMP/bankruptcy road.

Vicande

UK loan rate is 11% and the other si am not sure.
Bankruptcy just sound scary about freezing my account, releasing money only for my rent and goods, it looks like I won’t have control at all and won’t have any kind of Liberty. Affecting with my employment, just sounds scary and with too many side effects.
As I am now I struggle but get payments done, will take me 4 years and 5 months to clear all the debts. Maybe I am trying to change a situation and maybe as I am now may be my best option?
Don’t know, what you think?

Vicande

BTW..... thank you all for you input and ideas, really lost in this kind of matters as you can see. Anything medical I am your person, but finance..... clearly not.

ViolaLass

I would go onto the debt reduction part of this forum and post an SOA (statement of affairs i.e. where every penny goes each month) and see what we could do to help you reduce your costs and therefore throw more money at the debt.

Vicande

I have downloaded a spread sheet from the step change website. Is a budget form to check where my money is going and where can I safe more. All the reading I have been doing regarding bankruptcy and all other options it looks like as long I can afford the debts, even if a struggle to safe, is the best option and I will get rid of the first loan in 2 years and 6 months, which will let me breathe a bit.
Bankruptcy option is just to scary and extreme for me I think.

-taff

Go to the debtfree wannabe section and post up an SOA, they will help you where to cut spending and send more money towards the debt.

Fil this in, format for MSE and post on the debt free board
http://www.stoozing.com/calculator/soa.php