The Damoclese saga - will this work?

Cleosmum

Karmacat wrote: »

Pania, thanks for doing this - I can't make sense of this either, its obviously me not damoclese then, as to why I can't follow his post. Sorry Damoclese - I trust Pania's ideas, and I trust her maths and finance skills, so for me, this post is "what she said."

I did the same last night and thought maybe I was too tired to follow it, but it still doesnt make sense this morning! To me it just looks like Damoclese is getting himself deeper in it, rather than sorting it out, is it just me?

Damo, run away from debt consolidation, new loans etc and snowball it!!!

GeorgeUK

Lots of good advice here - will look at this again later for number crunching.

Edit: Might be worthwhile trying to look at LOB cards later too

Damoclese

Back again. Thanks for all the feedback.

Limits on the cards:
TSB C-Card £6500 (£3843.53 spent)
RBS C-Card £4000 (£3320.99 spent)
Halifax Card £2700 (£2561.20 spent)

I tried to get an Egg card with a 0% offer, but was declined. That is why i was surprised at being allowed a 2nd loan. But that is now a credit check for Halifax loan, Egg and TSB within a short space of time. Even in 6 months or so if i wait for these checks to fall off the credit report a borrower will see i have about 19k debt and 16.5k (possibly) income.

I've tried crunching the numbers and i think the difference is getting everything paid off in 4.5 years compared to about 6. I think it will take 70 months and 11.4k in interest without the 2nd loan.

With the 2nd loan i think it will take 55 months and 5.8k of interest.

Only question is if i can do BT's or not at a later date. I would need to clear my TSB card before doing that or get another card - which i may or may not get. Still don't know. I'll try phoning Halifax and see when my first payment is due. That may help.

I wasn't planning on keeping money back from the loan. I have a few months grace and was going to keep the extra money i have in my account until the first payment on the loan is made incase i have miscalculated or the bonus is not delivered (was verbally told i'd be getting the bonus, but nothing in writing)

The tsb loan is over 42 months and the halifax is over 48. Total interest is about £1050 and £1700 respecively.

If i get the bonus when i get my payrise in May (when i think the loan payments start) then i think the monthly expenditure will be £475. Also with the TSB Card paid off there is a chance of 0% BT's too for tarting.
Crikey. I'm confused and i'm trying to explain it. haha

Thanks for all the input and especially pania. If this is a bad move, i'd rather find out now

Bismarck

Hi again Damoclese...this may or may not be helpful....when I was stuffed on all my limits the CC providers kindly sent me offers of this and that balance transfer...usually impractical and followed by offers of loans,,the other thing is recently the providers have looked at my account to see if there are any special offers for me that aren't advertised and there often are.....for now is it worth phoning TSB CC and asking (without any intention to follow through, what BT rates they would give you to shift £1k from one of your other cards.....that will give you some idea of what shuffling you can do...try that and let us know what they offer you...

great name by the way!

Damoclese

Thanks for that Bismarck. Wish i had spelt it properly now Damocles
The TSB card had quite a few cash withrawals on it hence the high interest rate. If i put anything else on the card, the lower interest will get paid off first. Not sure if they do these Life of Balance cards though, so i may ask about transferring some of the available credit to that type of card.

Anyone know where these cards get advertised? Can't find much about them.

saffronflowers

try here

http://www.thisismoney.co.uk/best-life-of-balance-credit-cards

Bismarck

eek!

Cash withdrawals are the pits....didn't realise that bit....you ideally need to flush the balance off your card to clear those out and then look to transfer everything back again. Is there any way at all you can borrow for say 2 months the amount you need to flush this payment out....there are ways round this but you need the extra mule to dump this original balance on first....then rejig everything else...

I thought the spelling was iffy but decided not to be rude!;)

Damoclese

Not got any other cards so i'm kinda stuck with it for now - that's probably why the loan seemed such a good idea.

Will need to crunch some more numbers before i do anything methinks.

TSB don't seem to have any Life of Balance deals but i guess i could ask.
I'll need to see what the numbers are like if i take the loan and don't get the bonus too. There's quite a difference in the amount of interest.