Cahoot or Northern Rock

winnie

Hi All,

Im after some advice - over the past few years i've racked up a load of debt by living above my means on credit cards, nice cars etc...

I've currently got 2 loans - 1 with Nationwide (£10K) and 1 with Natwest (£6K), plus my credit card stands at about £5K. Im currently paying back £410 a month on loan repayments (£205 each) and then i try and pay about £100 off my credit card.

Im now giving my spending a complete overhaul - ive tackled all my bills and curbed my spending and i've realised that if i consolidated all my debt my monthly payments would go down to around £385 - thats based on £21K over 5 years with either cahoot or northern rock.

I also paid and got my credit report yesterday and im good to excellent in all categories.

So i guess my questions are:

1. Would you consolidate the 3 debts?
2. Who is best out of Cahoot or Northern Rock?
3. Or would you suggest someone else?

I really hope you can all help me as admitting i've got all the debt and facing up to it is scary and quite depressing at times.

I look forward to hearing from you all.

Thanks,

Winnie

hilstep2000

I got a Northern Rock loan without any probs, but I have got a mortgage with them. They are the best at the moment for interest, but make sure they don't try and get you to sign up for their insurance, it's really expensive!
I sounds as though you've done your homework, and it would benefit you to consolidate, but please remember, once you have, DON'T TAKE OUT ANY MORE CREDIT!
or you'll be back where you started!
All the best to you.

winnie

Thanks for the advice. I think i'll do some more research over the weekend and then apply next week.

And no im definately not getting anymore credit cards or loans. I had 2 credit cards, i already cut one up and im going to freeze the other one in water, so that its there if i need to use it, but not when im out and buy something on inpulse!

Xbigman

How long are your current loans for? If less than 5 years you will probably be better off keeping them.

What are the settlement penalties? That also would be money down the drain.

Do you have PPI on your existing loans? If so you probably paid it upfront and won't get it all back, potentially more money lost (but not as clear cut).

In general, consolidating does not work on multiple levels. Don't do it.
For more detailed advice you could post all the missing info (lengh to run, APR, settlement figures, PPI).
Regards


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