Should I consolidate

duran68

Hi everyone, ok I currently have £11100 of debt spread across 4 credit cards, various rates of APR , the lowest being Barclaycard @15% ,the highest being around 18% , currently paying the minimum amounts ranging from £81.69 for the Barclaycard down to Virgin @£26.07( still on 0% until July,) my Sainsburys card is on 0% until January 2020 and I pay £56.75 per month.

So I think I may be better off getting a loan for £11000 and paying every card off straight away , I can get a loan for £11000 @ 8% APR from Tesco @ £ 221 per month over 5 years , I,m currently paying £240 per month for all cards , do you think I,m doing the correct thing in consolidating? PS , I would be closing the Credit Card accounts down too

DCFC79

duran68 wrote: »

Hi everyone, ok I currently have £11100 of debt spread across 4 credit cards, various rates of APR , the lowest being Barclaycard @15% ,the highest being around 18% , currently paying the minimum amounts ranging from £81.69 for the Barclaycard down to Virgin @£26.07( still on 0% until July,) my Sainsburys card is on 0% until January 2020 and I pay £56.75 per month.

So I think I may be better off getting a loan for £11000 and paying every card off straight away , I can get a loan for £11000 @ 8% APR from Tesco @ £ 221 per month over 5 years , I,m currently paying £240 per month for all cards , do you think I,m doing the correct thing in consolidating? PS , I would be closing the Credit Card accounts down too

If you can consolidate will depend on your salary and your credit history/file.

Its doubling your debt, lenders have no idea you will close the cards.

Consolidating is rarely a good idea, it will only work if your willing to stick to the plan and not build up more debt.

elsien

Only if you understand and address the spending that led to the loans in the first place.
Otherwise, with all best intentions, the next time you hit a problem you might take out credit again and end up with the consolidated loan and yet more credit.

duran68

DCFC79 wrote: »

If you can consolidate will depend on your salary and your credit history/file.

Its doubling your debt, lenders have no idea you will close the cards.

Consolidating is rarely a good idea, it will only work if your willing to stick to the plan and not build up more debt.

Yes I can consolidate, and 100% will be clearing all debt ,and sticking to the plan

duran68

elsien wrote: »

Only if you understand and address the spending that led to the loans in the first place.
Otherwise, with all best intentions, the next time you hit a problem you might take out credit again and end up with the consolidated loan and yet more credit.

I fully understand the spending issues ,my fault entirely ,but I,m at an age now where I want to sort out my future for the better

duran68

Or would I be better off just fixing my card payments at the level they are now on the cards I,m paying interest on ?

YorkshireBoy

The fact that not all of it is on 0% says your income is low, when compared to your debt, and you're being denied 0% BT cards. Would that be a true observation?

There are numerous calculators on the internet that will allow you to see when you'll clear your CC debt, based on various payment options.

How much can you, truthfully, afford to repay each month? You're currently paying £240 you say, but are looking at a loan over 5 years to pay £212. Why not reduce the duration so the payments are £240? Or even better, £300. Maybe £400 is possible by cutting back elsewhere?

Some numbers would help suggestions, ie income, other debt such as mortgage, a spouse/partner prepared to help, etc.

duran68

YorkshireBoy wrote: »

The fact that not all of it is on 0% says your income is low, when compared to your debt, and you're being denied 0% BT cards. Would that be a true observation?

There are numerous calculators on the internet that will allow you to see when you'll clear your CC debt, based on various payment options.

How much can you, truthfully, afford to repay each month? You're currently paying £240 you say, but are looking at a loan over 5 years to pay £212. Why not reduce the duration so the payments are £240? Or even better, £300. Maybe £400 is possible by cutting back elsewhere?

Some numbers would help suggestions, ie income, other debt such as mortgage, a spouse/partner prepared to help, etc.

Thank you , my income is around £31500 per annum , I,m a single parent so only income in the house , other debt includes £330 per month for mortgage /£212 per month for car as the main ones ,when you add all other expenses food/fuel etc realistically £250 per month is the most I could comfortably do .
All cards bar the Barclays card were 0% interest ,but obviously like a fool I haven't cleared the Tesco one , the Sainsburys one runs until jan 2020 , the virgin one July ,

onwards&upwards

Have you tried to get 0% balance transfer cards?

duran68

onwards&upwards wrote: »

Have you tried to get 0% balance transfer cards?

Tbh no I haven't , but realistically with Tesco offering me a loan @8% I doubt I would get a 0% card anywhere now, Actually I,ll take that back ,just been accepted by HSBC 28mnths 0% balance transfer card ,and shifting the Barclays and Tesco interest bearing cards balance onto that .
Thanks for your help guys ,I really don't know why I didn't think of a balance transfer card !!

DrEskimo

duran68 wrote: »

...£212 per month for car...

Do you mind if I ask for more details on your car payment?

Obviously this will count towards your overall debt, and if you can look at options at reducing this, it would got a long way to helping you with clearing the £11k CC debt.