Consolidation.. Best apr possible

Thenonameleague

d_jimbo said:

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

Well your still struggling, the bank will see it that way as well.
I understand why you are considering it but the bank will have no idea you will do as you say.
Theres a decent thread on the loans board, its the first thread, its about consolidation.

sourcrates

Liken your situation to dance moves, first you try to shift the debt around, when you can no longer do that you try to consolidate, when that fails you realise you need debt advice, just cut out the first two moves and go straight to the 3rd.
Debt free wannabe board awaits you.

[Deleted User]

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.

Honestly, what's with yet another thread asking if debt consolidation is a good idea?  Have you not read the thousands of other threads on exactly the same topic which includes a sticky at the top of this board?  You'll be hard pushed to find anyone telling you it's a sensible idea.

[Deleted User]

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.

What is it with the hostility and defensiveness of posters on this forum ?

What you're seeing isn't condescension, it's advice from older and wiser members.
The members who've been here the longest have the most experience in money management and credit conduct - they are trying to give you, free of charge, their expertise in the field you're asking about.

You're asking the best way forward - they're answering.
If you don't like what you hear - politely say thank you and leave.
When you're ready to talk again - we're here.

Keano24

Rather than consolidation and another loan, would it not be better to try and get a 0% Balance Transfer and put the £3,600 onto that meaning you can keep the loan payment the same as it is now and chip away at the card balance for 18 / 20 months, whatever the term is?

Your situation may not be favourable to lenders but you definitely have a better chance of being approved for a Balance Transfer card for a low figure amount than a new loan of £12,500.

foxy-stoat

d_jimbo said:

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

Just apply for a loan now and report back if you get a decline or a high rate APR - you wont get the lowest rate.
Why not just reduce the £400 a month you pay on the credit card for the next 6 months, by that time you should hopefully be able to get a longer 0% interest balance transfer deal and carry on the shuffling.

Kidder81

Keano24 said:

Rather than consolidation and another loan, would it not be better to try and get a 0% Balance Transfer and put the £3,600 onto that meaning you can keep the loan payment the same as it is now and chip away at the card balance for 18 / 20 months, whatever the term is?

Your situation may not be favourable to lenders but you definitely have a better chance of being approved for a Balance Transfer card for a low figure amount than a new loan of £12,500.

My suggestion would be to do this, although wait out the remaining 9 months on your current 0% deal.

If you pay £100 per month off the credit card, you’ll be down to £2700 in nine months time and your loan will be 9 months further down the line. Shift your remaining CC debt to another 0% (assuming it’s available) and keep going that way.

Please whatever you do, don’t get another loan. Loans are a sure fire way of getting into a mess imo, just as much as credit cards. 

Along with the above, you really need to look at where your money is going and cut back on any luxuries. Just think of every £ as a £ closer to being rid of debt and out of the control of businesses who solely exist to keep people in perpetual debt cycles.