Getting on top of debts

Fuzzyduzzyperkins

Hi I could do with some advice please?

I have two credit cards where i'm close to the limit on both.  On my Natwest one which has £9,395 on it I'm currently paying the minimum payment of £98 per month, however this is due to increase from May this year to over £600 per month.  
My other card is with Lloyds and has a balance of £12,014, again I'm paying the minimum amount every month of £317 per month, the minimum payments on this still have another 8 months or so before the payments back increase.

Natwest were due to start increasing the payment amounts back in December, but I managed to obtain a grace period of 4 months, where they've agreed to extend my minimum payment amounts, whilst I tried to obtain money in the form of a consolidation loan, or new credit card to pay them back.

I've recently applied for a new credit card, with a limit of £2,200 with Barclays, which I was hoping to use to pay off my Natwest card, but as the credit limit on this is a lot smaller than I'd hoped I haven't used it as yet.

I recently carried out an eligibility check on the MSE site for a loan and it said I have 95% chance of being approved for a £12,000 loan, with a low repayment apr, which I would use to pay off the Natwest card and pay the rest towards the Lloyds card.  
I really just want to get this sorted, as the last thing I want is to go down the IVA, or bankruptcy route etc...

Can anyone advise what, or point me in the right direction on what course of action I can take please?

eskbanker

Best bet will be to head over to the debt-free wannabe board, where posters will offer constructive advice about how to address debt:

https://forums.moneysavingexpert.com/categories/debt-free-wannabe

JES_F1

I'd recommend posting in the Debt-Free Wannabe board - they'll be able to give some great advice.

Nasqueron

Borrowing to pay debt isn't the solution, it doesn't address the underlying cause of the debt and doesn't prevent the debt being run up again which is why lenders are reluctant to do this as they cannot force you to use the loan to pay the cards and cannot stop you spending on the cards. This is why lenders will do a hard check and see your credit file and consider the loan + card payments combined rather than one replacing the other.

MEM62

Fuzzyduzzyperkins said:

I recently carried out an eligibility check on the MSE site for a loan and it said I have 95% chance of being approved for a £12,000 loan, with a low repayment apr, which I would use to pay off the Natwest card and pay the rest towards the Lloyds card.  
I really just want to get this sorted, as the last thing I want is to go down the IVA, or bankruptcy route etc...

You cannot borrow your way out of debt.  It just does not work.  Also, you will not get a decent interest rate on a consolidation loan.   

You need to address the route cause of amassing the debt in the first place. (to stop the rot, so to speak)  Once done then you need to consider a debt management strategy.  If the level of payments are already stressing you financially then this may be a painful process.  However, it will put you in control and there will be light at the end of the tunnel.  If you want meaningful advice on dealing with your debt from the guys and girls here post an SoA on the Debt Free Wannabe board.