Should I consolidate

duran68

DrEskimo wrote: »

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.

Hi , its with Barclays ,can't remember the exact figures but circa 11k @3.9% ,owe £6268 on it as of now

DrEskimo

duran68 wrote: »

Hi , its with Barclays ,can't remember the exact figures but circa 11k @3.9% ,owe £6268 on it as of now

Is that just a straight loan, or a PCP loan with a balloon payment?

Is it likely you could sell the car for more than the outstanding £6,268 and look to get a much cheaper car with no payments?

If you were to consolidate with the 8% loan over 5-years, and sell the car/cut budget to free up £250 per month to use as over-payments, you could be debt free in just over 2-years.

YorkshireBoy

duran68 wrote: »

just been accepted by HSBC 28mnths 0% balance transfer card ,and shifting the Barclays and Tesco interest bearing cards balance onto that .

Just enough room?...or some left so you can transfer some of the soon to expire 0% card balance(s)? Reason I ask is that sometimes there's a 60/90 day window for 0% BTs so best to get in quick...even if it's the same 0% it'll be 0% for longer.

Two further points:

1. You MUST pay £250 per month towards the cards (you said you could, remember), even though they're 0% interest. You never know what's around the corner! And if you can't/don't, then that's proof that a 5-year consolidation loan wasn't a good option to be considering!

2. HSBC has a 2.5% minimum payment from memory? Your Tesco was 1% plus interest, and Barclaycard may have been 2.25%? So your minimum payments may well rise compared to what you were paying before. You may need to tighten your belt further.

YorkshireBoy

DrEskimo wrote: »

Is it likely you could sell the car for more than the outstanding £6,268

If it's on HP, if that's the sum of payments x months remaining, and there's some way to go, then the settlement figure could be a good bit less?

DrEskimo

YorkshireBoy wrote: »

If it's on HP, if that's the sum of payments x months remaining, and there's some way to go, then the settlement figure could be a good bit less?

Indeed, as you would be saving on interest!

duran68

DrEskimo wrote: »

Is that just a straight loan, or a PCP loan with a balloon payment?

Is it likely you could sell the car for more than the outstanding £6,268 and look to get a much cheaper car with no payments?

If you were to consolidate with the 8% loan over 5-years, and sell the car/cut budget to free up £250 per month to use as over-payments, you could be debt free in just over 2-years.

Straight loan ,would probably be lucky to break even if I sold the car

duran68

YorkshireBoy wrote: »

Just enough room?...or some left so you can transfer some of the soon to expire 0% card balance(s)? Reason I ask is that sometimes there's a 60/90 day window for 0% BTs so best to get in quick...even if it's the same 0% it'll be 0% for longer.

Two further points:

1. You MUST pay £250 per month towards the cards (you said you could, remember), even though they're 0% interest. You never know what's around the corner! And if you can't/don't, then that's proof that a 5-year consolidation loan wasn't a good option to be considering!

2. HSBC has a 2.5% minimum payment from memory? Your Tesco was 1% plus interest, and Barclaycard may have been 2.25%? So your minimum payments may well rise compared to what you were paying before. You may need to tighten your belt further.

Yes the HSBC card is 2.5% minimum payment so my payment on the 2 cards I transfer would be roughly £6 more than I pay now ,but obviously every penny paid in now pays off the debt ,which puts me in a much better position down the line,EDIT,the Barclaycard minimum payment is 2.5%

onwards&upwards

duran68 wrote: »

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 !!

Great news!

Shifting between 0% transfer cards is always a better way to get rid of debt than consolidating.

shiwen55

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

See if the loan APR is less than a balance transfer card fee, I'd go for it else balance transfer them

MallyGirl

but the BT fee is a one off and the loan was 5 years at that APR.