Consolidation credit cards

artskol1

Hi everyone,

Couldn't really find an answer out online, so thought I'd give MSE a go.

I currently have £7000approx on 2 credit cards and 1 overdraft from a couple of years ago.
I pay £160 off one card, and £80 off the other and £30 off the overdraft each month.

I'm wondering if I will benefit more from taking out a loan out to pay all these off at once and close them down?
We've recently been accepted for our mortgage so I hope this won't affect us at all....

Thanks in advance,

[Deleted User]

A BT card would be a more sensible option, assuming you can get one.

But either way, you'll need to address the overspending and not build the debt back up.

And obviously, if you haven't completed on your mortgage, don't apply for ANY new credit until you're in the door.

jonesMUFCforever

Consolidation only works (in any circumstances) if you pay more in than take out. I know this sounds simple but is true.
If you take a loan today what will stop you from racking up more debt tomorrow?

Dobbibill

Try and pay off the most expensive debt first.

As zx says - if you have a mortgage currently going through be cautious with applications.
Address the reason for the original debt - will it happen again? What will you do differently to stop that happening?
I would say no to a consolidation loan but possibly to a BT and/or MT with good timing and eligibility.

All the best.

foxy-stoat

What is the interest on the cards?
What was the balance 12 months and 6 months ago on the cards/overdraft

Answering your question, I dont think there will be any benefit to you in taking out a loan at the moment.