Shall I Get Another Loan To Combine Debt????

Liani

Hi, Its been a while since I have visited this site. last time was my victory of reclaiming my 2000 bank charges which I should have used to pay off my debts but I spent it instead and now have lots a debt - AGAIN !!
I have been offered a loan from bank to pull all debts together, I have a loan at the moment which has another 2 years to run. Should I struggle on this next 2 years then when this loan is finished I can use the £150 I was using to pay it, to pay off my additional debts which currently stand at £7000 or take up the banks offer and get another loan lasting another 5 years?????????????????????? SOMEONE PLEASE HELP ME DECIDE

Lianne x:eek:

shinyhead

Hi Liani,
Before you go ahead with this new loan I suggest you contact the debt charities CCCS, Payplan and National Debtline for advice. I'm with CCCS and I believe one of their most repeated bits of advice is not to consolidate.

See what your options are first.

poorandindenial

Don't consolidate. I don't want to sound nasty but from what you have said you probably don't have willpower to not run up the debts again. You also have already paid a LOT of interest on your existing loan and to undo that and whack it in with a load of other debt is probably not helpful.

Check the different scenarios on whatsthecost.com snowball tool and see how much more you might be paying if you pay the debts back under the consolidation loan. IF you were to consolidate you may want to also look at consolidation of the £7000 without the other loan too (although I would personally counsel against consolidation, that was the slippery slope that turned my debt from £8k to £36k)

When banks OFFER you things they are RARELY in your interest.

Good luck with this, let us have more detail about what the £7k of other debt is made up of (for each debt we need current balance, credit limit, minimum monthly payment and interest rate) and we will be able to give better advice.

CCCS_Sarah

Hi Lianne,

If you were to take out a consolidation loan this would not be clearing your debts it would just be moving them from one place to another.

If you do find you are unable to meet your monthly payments then you might want to look at completing Debt Remedy on the CCCS website. Debt Remedy is an online debt advice system. You input your income and expenditure the system will let you know exactly where you stand and the best way forward. This link will take you directly to Debt Remedy and it only takes a few minutes to complete

Or if you are ok with your budget you could look at the snowball calculator. This is a system where you input your surplus, debts, APR etc and the formula works out what order to pay the debts back so effectively you pay the minimum on your lower interest rates and pay the higher interest accounts first so overall you will be not paying as much in interest. I don’t have the link to this but I’m sure someone will be able to point you in the right direction.

Look at all the possible options that are available and if you have any questions please feel free to ask

Sarah