Help with loans

slates0201

Hi, 

I have recently joined the forum and I haven’t posted before but im in need of some help and advice as I’m unsure what to do. PLEASE be kind, I am well aware this situation is of our own making. We are a family of 4 and both my partner and I work full time however for various reasons we have got into debt. I’m conscious of paying more money in the long run but we also need to free up some money on a monthly basis as our mortgage payment is going up by an extra £240 a month in September. 

Currently we owe £2000 to a family member, £2000 as an overdraft and £6000 on a credit card where the interest is crippling. We also have a loan which is £244 a month. The original amount was for £18,500 and I have about £9,000 outstanding on it. Do I see if I can take out another loan with the same company ( if they let me) to cover the outstanding amount plus what else we owe?  Or move the credit card to interest free and try and find some spare catch wherever we can to tackle the other debts? Or do we look for a consolidation loan to pay off the whole lot?? Any help greatly appreciated 

MorningcoffeeIV

No more loans. You've tried borrowing and it's not something you're very good at.

You won't get 0% carda and consolidation loans are a terrible idea.

Go to to the DFW boards for help on clearing the debt. Do an SOA and people will help identify your options.

fatbelly

Yes this is something we are seeing every day now on debt-free wannabe.

Incidentally you'll probably find the overdraft has a higher effective apr than the card

[Deleted User]

Hi,

here's a link to DFW.

sourcrates

With the current rise in interest rates, sending mortgage repayments sky high, more and more people are finding themselves unable to meet their current financial commitments, so its important you make the right choices to deal with these issues.

You don`t lose weight by eating more food, likewise you don`t tackle problem debt by borrowing more money.

There are ways to deal with non priority debt, come on over to DFW, using the link above, and we can help you sort out a strategy.

Brie

You've done the hard bit - admitting that there's a problem and that you need to do something about it.  Not saying the rest will be easy or quick but with the help of the lovely people on DFW there's probably lots of good ways to tackle this.

ManyWays

Talk to Stepchange about a debt management plan which is like a flexible, no interest consolidation loan. It harms your credit record but if your mortgage is with a lender who has signed the Mortgage Charter (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1177713/Mortgage_Charter.pdf) this wont prevent you from getting a new fix as your lender wont do any credit checks. 

sourcrates

ManyWays said:

Talk to Stepchange about a debt management plan which is like a flexible, no interest consolidation loan. 

Just to clarify, its not a loan, you repay what you owe to your creditors, at a reduced rate, determined by your budget, over a longer period of time (hopefully) with all interest and charges stopped.

There is no further borrowing involved whatsoever.

enthusiasticsaver

Another loan is not the answer. You have tried that once already. Was the current loan for debt consolidation? 

The overdraft is probably more expensive. If you can move either that or the credit card to 0% that will help.

you need to do a budget or soa to see whether the extra £240 on your mortgage is possible. If not you will need some sort of debt solution which will involve defaulting on the loan/credit card etc. that could mean though that the monthly repayments will be affordable and interest frozen. 

Post on the DFW forum.