Consolidate debt - Help

fairmorn308

Evening.

I have the following debt and was looking into a consolidate loan to try reduce my monthly payments

Monthly Income £2616

Out goings ( monthly )

Welcome finance loan £239 2yrs to go ( roughly £5.5k left )
Welcome finance car loan £170 3 1/2 yrs to go ( roughly £6.8k left )
Another car Finance £206 3yrs to go ( roughly £7.5k left )

Car insurance £67
Mobile phone £43
BT phone and internet £50
O2 and T mobile on move broadband £50
Credit card £200 limit . balance £43
Rent £300


Any help would be gr8 as i want to try pay off the above loans etc and just get it all into one.

tealady

Hi Seriously I wouldn't consolidate the debt but I guess Welcome have very high APRs so it may be worth trying to get a different loan to pay them off.
If you put up your SOA then people will be able to advise further as there could be ways you could cut back.

RAS

Hi

We need a lot more information to really help you but it looks like you hmay have already consolidated once or twice.

Basically it is a bad idea evne to consolidate CCs, but with loans you are likely to get walloped by early redemption charges as well.

So put up the APRs for everything and a full SOA and we will try and help.

poppyg_2

It'd probably be difficult to get a loan with a low APR for the amount you owe and as others have said it does look like you have been down this route before?

If you post an SOA I'm sure there'll be lots of people giving you some great advice

jo1972

Hi :wave:

You've listed some outgoings but are there anymore i.e. council tax, water rates, TV licence, gas, electric etc?

fairmorn308

hiya.

this is all the outgoings and in goings i have.

I live with my parents etc.

Not sure of APRs at the moment as am working in denmark at the moment and not home until ten days time but i want to know if there is anything i can do to try reduce the amount of outgoings etc as its quite alot i know but if i consolidate the lot would it not reduce the monthly payments aswell and would be easier for myself.

Or any advice on the best way to pay alot of this off quickly? am willing to over pay each month to get it paid off quickly. I want to start saving for a deposit to get a mortgage and want to try get alot of this debt paid off aswell

cheers guys

IWantToBeFree_2

Are the loans front loaded with interest? If they are, you could end up paying interest on interest which would increase the amount you pay significantly, not to mention any early redemption charges.

CLAPTON

Am bit confused

your income is 2616
your living expenses are 510
leaving 1,106 for debts
your debt repayments are 615
leaving a surplus of 401

so ... why are you so desparate to reduce outgoings when is seems you have a large surplus.

without knowing the APRs of your debts its impossible to advice on a strategy to repay debts quicker... a consolidation loan may have a higher APR and cost you more.

The best way to pay off quickly is to allocate more money each month to the debts and reduce APRs if possible..

fairmorn308

the amounts i have posted above is the overall amount i would end up paying back. How would i go about reducing the APR

PasturesNew

CLAPTON wrote: »

Am bit confused

your income is 2616
your living expenses are 510
leaving 1,106 for debts
your debt repayments are 615
leaving a surplus of 401

You slipped up a bit:

your income is 2616
your living expenses are 510
leaving 2,106 for debts
your debt repayments are 615
leaving a surplus of 1,401

OP - you need to find out for each of your loans if there is any financial benefit to paying them off early... or if to pay them off early you still end up paying the same amount.

For the loans where there is financial benefit to paying them off early, list them in order of the highest APR.

Starting from the top, pay in £1000 minimum each month until it's paid off, then move onto the next one.

You'd have them all paid off in 18 months that way.

However, just be careful to check that it IS cheaper to pay them off early. If it isn't, then instead pay the amount into a high paying savings account and get the payments to come out of that account.

fairmorn308

Think am going to set up a high interest savings account and pay like £1000 into it and get all my payments to come off that way then i am left with my current account to spend by myself