Consolidation.. Best apr possible

d_jimbo

Hello I'm looking for some advice on consolidating a loan and a credit card.

 I have a Santander Consumer finance agreement running that costs me £252 per month there is £10800 left owing and it's on 13.9apr. 
I had a problem with my car and ended up having to put £3600 on a credit card I had kept for emergencys it's interest free for another 9 months.
I'm wondering if it would be sensible to try and get a loan of about £12500 to pay off the card and previous loan (previous loan is actually £8900 for the early settlement) 
I'm going to struggle at the moment on reduced wages to cover the original loan payment plus the month credit card. So was thinking that £12500 with a slightly better Apr the 13.9 over another 5 years would keep my payments down below the £250 mark? 
Does this make sense, am I missing something obvious, is there a different way to do it? Also what would be my best chance of getting a loan at the advertised apr as I've seen them as low as 2.8%?

Thanks in advance

James

[Deleted User]

You're not going to get a low rate loan given your circumstances.

Consolidation loans will probably come in a higher rate than you're currently paying, given you'd be asking for a total of 25k.

You might do better with a modest money transfer card, but your indebtedness is going to be a problem. And if it's not enough for the full loan amount, your outgoings will be even higher.

Start with the DFW boards.

jonesMUFCforever

Basically what you are doing is kicking the can down the road and hoping.
Who is going to lend to you if you are on reduced hours?
To get the best loan rate your credit files has to be A1 - what state are yours in?

My advice would be to go to the debt free board - write out a statement of affairs - cut down on all unimportant outgoings - sell things that you do not use or need and pay down as much as you can on the credit card.
Good luck.

d_jimbo

Honestly what is with the condescension on this forum? 
Why am I kicking the can down the road and hoping? I'm not asking to be debt free. My credit score is perfect and I was more than comfortable last year making the payment. In fact I'm still comfortable making the payment and I can also affordable to pay back the card if I have too.

All I'm doing is seeing if it is feasible to shift things about to make things more comfortable at this more difficult time. I took in the loan in the first place and credit card to build my score, I'm glad I had the card to fall back on.

[Deleted User]

Your perfect credit score won't help when it comes to getting credit.  Lenders will only be looking at your credit history and management and unfortunately, they won't be giving you anything like a perfect score.

Try an eligibilty checker or two, but you need to tackle the root of the problem.

d_jimbo

ZX81
I thought my total debt would only £12500 plus it's interest as that would be used to pay off the other loan and credit card?

[Deleted User]

No. It's 25k. You can't pay off the first 12k until you get the second, meaning you'll be carrying 25k.

jonesMUFCforever

d_jimbo said:

Honestly what is with the condescension on this forum? 
Why am I kicking the can down the road and hoping? I'm not asking to be debt free. My credit score is perfect and I was more than comfortable last year making the payment. In fact I'm still comfortable making the payment and I can also affordable to pay back the card if I have too.

All I'm doing is seeing if it is feasible to shift things about to make things more comfortable at this more difficult time. I took in the loan in the first place and credit card to build my score, I'm glad I had the card to fall back on.

You are in debt and trying to pay it off with more debt - never a good idea - condescension - well I gave you suggestions to help - BYE!

Thenonameleague

d_jimbo said:

Hello I'm looking for some advice on consolidating a loan and a credit card.

 I have a Santander Consumer finance agreement running that costs me £252 per month there is £10800 left owing and it's on 13.9apr. 
I had a problem with my car and ended up having to put £3600 on a credit card I had kept for emergencys it's interest free for another 9 months.
I'm wondering if it would be sensible to try and get a loan of about £12500 to pay off the card and previous loan (previous loan is actually £8900 for the early settlement) 
I'm going to struggle at the moment on reduced wages to cover the original loan payment plus the month credit card. So was thinking that £12500 with a slightly better Apr the 13.9 over another 5 years would keep my payments down below the £250 mark? 
Does this make sense, am I missing something obvious, is there a different way to do it? Also what would be my best chance of getting a loan at the advertised apr as I've seen them as low as 2.8%?

Thanks in advance

James

So your going to struggle to cover the original loan and want to take out more debt, not good for a start.

Problem is the lender will see it as additional borrowing (your credit score will not be taken into account, your history will be).

Another problem is consolidating rarely works as there's the risk of more debt being created, you took out a loan and paid the card and loan off but 1/2 years later more debt has been created.

You can either look at your spending and cut back OR take on a second job so your income is increased so your not struggling and at a point revisit consolidating.

d_jimbo

Thenonameleague said:

d_jimbo said:

Hello I'm looking for some advice on consolidating a loan and a credit card.

 I have a Santander Consumer finance agreement running that costs me £252 per month there is £10800 left owing and it's on 13.9apr. 
I had a problem with my car and ended up having to put £3600 on a credit card I had kept for emergencys it's interest free for another 9 months.
I'm wondering if it would be sensible to try and get a loan of about £12500 to pay off the card and previous loan (previous loan is actually £8900 for the early settlement) 
I'm going to struggle at the moment on reduced wages to cover the original loan payment plus the month credit card. So was thinking that £12500 with a slightly better Apr the 13.9 over another 5 years would keep my payments down below the £250 mark? 
Does this make sense, am I missing something obvious, is there a different way to do it? Also what would be my best chance of getting a loan at the advertised apr as I've seen them as low as 2.8%?

Thanks in advance

James

So your going to struggle to cover the original loan and want to take out more debt, not good for a start.

Problem is the lender will see it as additional borrowing (your credit score will not be taken into account, your history will be).

Another problem is consolidating rarely works as there's the risk of more debt being created, you took out a loan and paid the card and loan off but 1/2 years later more debt has been created.

You can either look at your spending and cut back OR take on a second job so your income is increased so your not struggling and at a point revisit consolidating.

Nope... Read it again.
I'm not struggling to pay the original amount. I will be struggling to pay the original amount plus the monthly amount on the credit card. The £3600 on the credit card over the 9 months interest free is £400 a month which is a big jump up.  
The idea behind consolidation was to keep one payment at around the original amount even if it did mean extending over another 18 months. 
My thinking was it would be better to be paying back an amount I can afford rather than struggling to find money each month to pay it back.

Thanks

bodsj

To quote an old sage (my father) , "To get a Loan, you first have to prove that you do not need it".