Consolidate Credit Cards to a Loan

I owe £20,000 on 5 different 0% credit cards and I am finding it hard to keep paying £500 each month to cover the minimum payments. i was wondering if it would be better to have a personal loan even though I would be paying interest so that I can reduce my monthly payments?

Comments

  • bertiewhite
    bertiewhite Posts: 1,904
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    It worked for me but then others will tell you consolidation is not a good idea if you're not disciplined.
  • Hi Bertie I am disciplined enough but just wondering if it is a wise thing to do.
  • MallyGirl
    MallyGirl Posts: 6,515
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    Reducing the monthly payments just extends the time you are in debt - and can lead to you relaxing a bit.
    Have you addressed why you ended up with so much debt in the first place? If not then you might be back with £20k loan plus a load more on credit cards.
    Better to tackle the debt head on - with the interest looming at the end of the deals - and cut back on spending to throw everything you can at the cards while they are still 0%
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  • Hi MallyGirl

    I totally know how I got in a pickle to start with. My daughters father left me and did not pay any money towards his daughter and I was too sick to work at the time. Now i am working and self sufficient and trying to get myself out of this pickle. I have long stopped using my credit cards and work on the basis that if the money is not there then i can't have it. I am desperately trying to get the cards paid off before their due date but that would mean me going from paying £500 to £1000 each month which is too much. Thank you for your reply
  • [Deleted User]
    [Deleted User] Posts: 35,242
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    You stand very little chance of getting further credit, let alone doubling it, with your current circumstances.

    You need to tackle it a chunk at a time. Cut costs, overpay the most expensive, see if you can get a BT card to shift a mall amount of the debt.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    Why don't you compare the cost of taking the loan versus snowballing your credit card debt?

    http://www.whatsthecost.com/
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,324
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    If your credit cards are at 0% then it makes little sense to take a loan out at probably a very high rate to repay them. Your salary would have to be enough to sustain £40k of debt as any application will pick up the existing credit card debt and assume you want a £20k loan on top of that. It is not a wise thing to do. Tackle the cards in the order of the first one with the deal expiring and close them as you repay them. As the debt reduces you will find it easier to get new balance transfers.

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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 [email protected]. All views are my own and not the official line of MoneySavingExpert.
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  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Sweet330 wrote: »
    My daughters father left me and did not pay any money towards his daughter and I was too sick to work at the time.

    Have you pursued him to contribute?
  • savingholmes
    savingholmes Posts: 26,851
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    Hi don't know if the OP is still reading this - but an alternative would be to try and balance transfer to an MBNA type card who appear on average to offer lower minimum repayments than some of the others...
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