Am I doing the right thing??

southernscouser

There are loans out there more than 2% cheaper than A&L so in that instance, no I don't think you are doing the right thing as you can get a better deal. Also PPI is gonna cost you and isn't guaranteed to pay out, for example if you're slef employed.

But generally speaking, borrowing more to get out of debt isn't a great thing to do. In instances it can be cheaper but it's not often that it is.

You might be better applying for a low life of balance credit card. They start at around 4.9% I think!

Have a play with this tool that will tell you how long it will take you to pay off your debts and how much in interest it will cost depending on the monthly payment. Then compare it to the loan. Also bear in mind that a loans interest is front loaded so you end up paying most of that first!

boxerdog1999

southernscouser wrote: »

There are loans out there more than 2% cheaper than A&L so in that instance, no I don't think you are doing the right thing as you can get a better deal. Also PPI is gonna cost you and isn't guaranteed to pay out, for example if you're slef employed.

But generally speaking, borrowing more to get out of debt isn't a great thing to do. In instances it can be cheaper but it's not often that it is.

You might be better applying for a low life of balance credit card. They start at around 4.9% I think!

Have a play with this tool that will tell you how long it will take you to pay off your debts and how much in interest it will cost depending on the monthly payment. Then compare it to the loan. Also bear in mind that a loans interest is front loaded so you end up paying most of that first!

Excellent, Thanks. I put in the 3 credit card debts and came out at 39 months! Thanks again, at the very least it's made me think about the alternatives to a loan. I'll get my SOA on here as soon as I can.

Seaxwyn

Hi boxerdog. I'm sure you could get life of balance credit cards at a lower rate than that loan. The great advantage of cards over loans is that you can pay them off at whatever rate suits you. any time you have a spare couple of quid you can make an overpayment, while with loans you are stuck with paying the same amount every time.

As someone who has had umpteen loans (OK, four) I would strongly advise AGAINST taking the loan.

Keeping_Motivated

boxerdog1999 wrote: »

Excellent, Thanks. I put in the 3 credit card debts and came out at 39 months! Thanks again, at the very least it's made me think about the alternatives to a loan. I'll get my SOA on here as soon as I can.

So 9 mths quicker to pay it off staying with the cards. Its a real eye opener when you look into things properly.

Sometimes the quick fixes end up the hardest routes whereas if you take the harder route of research and looking at things in depth (sometimes hard to do) then the the route ends up much easier. Hope that made sense.

Good luck

rayday2

Also if you did go with a loan, that payment protection is extorinate I have a mortgage policy protection and its only £8 a month and pays up to £450 a month in the event of sickness, redundancy etc

I took out a loan to sort myself out, you don't feel the impact of what you have done so carry on spending and eventually I ended up on a DMP - learn from an idiot and try and pay the cards off without it.

boxerdog1999

Keeping_Motivated wrote: »

If you do a SOA be sure to include all debts and all interest rates too so people can help you fully.

I've just done my SOA and apparently I've got £834.95 spare each month!! How's that work!!?? I wonder where it is?? I'll check through it again and post it when I've got it right.

rayday2

Most people discover that.

Try looking through bank statements, credit cards and see where its gone and spot trends also the very boring but if you do it helpful spending diary!
Just keep a note of what you buy.

RAS

Also

Think of all those annual costs like Christmas, birthdays, holidays and car tax etc and divide the costs by 12 to allocate a share to the monthly account.

kizzykizzywizzy

I wouldn't consolidate, I have consolidated loans, by getting more loans & even added the loans to the mortgage:eek: & still ran up another £20,000, which I am clearing the slow ( non quick fix ) way & the way that I realise my spending habits needed to change!
Like your user name I love Boxers, I had a Boxer called Kizzy, ( she died nearly 14 years ago now, wow didn't realise it was that long ago ) hence my name
It may be easier to pay a fixed amount over a longer term, but think of the money you will be giving them for doing nothing!! A bit of extra effort on your part moving to 0% cards of low lifetime of balance & you may even get debt free sooner than you think
Good Luck:T