Help and advice please

GT60

Hi everyone
I have two loans and one is due to end next Feb & the other one for 3K i have just took out to pay off the overdraft again. this loan is a pay off early one with no penalty.
i also have a credit card which is at 3.5k but is interest free and is due for balance transfer next June.
The question is should i use the interest only extension i have got on my mortgage to pay off both off my loans so that i am only paying one debt i have also used some of the morgage extension to purchase a car and home inprovements.
Total for the morgage extension is 14k up to now on top of the normal morgage.
i am thinking if i have one debt i can keep track of the payments and know that it is going down because at the moment the 14k is not getting payed regularly like i was supposed to do. But with the two in one place it will be payed.
I hope all this makes sense.
Thank you Niall

hypno06

bumping this one up because it was in danger of being missed.

I've got to go and do some work now, but I am sure someone can give some input on this one.

Thanks x

Scarlett.1974

Hi Niall,

What's ringing my alarm bells here is this comment: "3K i have just took out to pay off the overdraft again", especially the word "AGAIN".

You won't find many people here that will recommend consolidation I'm afraid, mostly because of the fact that it doesn't actually address the problem of why you've got into debt in the first place. Also, the very real danger (and it's happened to a LOT of people, myself included) is that you will then go on to spend again on those 'empty' CCs and overdrafts. I read somewhere that something like 80% of people who consolidate their debts go on to run them all back up again and end up in an even worse position that they were before. You also need to take into account the fact that by paying for them over a longer period time you'll pay much more interest.

What I would recommend you do is have a look at the snowball calculator here: http://www.whatsthecost.com/ and input all your debts with balances and APRs - you might be pleasantly surprised.

I hope I haven't come accross as too harsh in the post

Scarlett xx

GT60

Thanks Scarlett
I suppose you have told me what i already know.
I'll just see if anyone else has any ideas
Thanks again niall

cat4772

Niall

Sorry love, I agree with Scarlett. You need to work out WHY you are in debt and address the problem rather than consolidating (or taking new loans out to pay off the overdraft AGAIN).

Cat.x