Credit cards loan consolidation
Gardenequipment
Forumite 4 Posts
in Credit Cards
I'm looking for a loan for about £8000 of credit card debt, my credit rating isn't fantastic but it is on the up and I have been making regular payments to these four particular credit cards. I would like to take out a loan to settle these credit cards, however, when I carry out a search on Google I am struggling to find the right product! The amazing thing is that I'm paying quite a bit per month for these credit cards and yet to have a loan would be a considerably cheaper cost per month. Incidentally, I am completely up-to-date with all my payments and household bills. Does anyone have any suggestions, please?
Thank you for reading.
Thank you for reading.
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So get a loan for £8000 lenders are really considering you on having £16000 of debt as there is no guarantee that you will clear the credit cards.
Post a SOA on the debt free boards for advice on cutting expenditure.
Look at a BT card to transfer some of the debt to a 0% offer to give you time to overpay on the other cards.
As is said above, consolidation rarely works - overpay instead.
Make sure you address the reason you have the credit card debt - that way you can prevent it happening again in the future.
Just be better than you were yesterday.
Yes but banks assume someone struggling to pay off CC debt may not use the loan for the CC due to other financial issues (say car breaks down the day the loan money comes in) then you've suddenly got a loan AND CC payments to make so they have to calculate based on loan + CC and whether this is affordable.
Go to the Debt Free pages and post a statement of affairs and see if people can help you save money. You can then pay off the most expensive card first to save interest, then do the next card etc
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I get the impression, perhaps wrongly, that you're basing your view of relative interest rates simply by looking at generic headline figures quoted on websites, rather than actually having a formal loan offer made with visibility of your own circumstances and credit history....
Post up balances, minimum payments the lender is asking you to pay (and the actual amount you do pay) and interest rates of the cards you have.
And as stated above, you wont get the lowest rate low for debt consolidation.
If you got a decent APR then they would be lower but it is unlikely that you would get a great rate.
It is a sad fact that those who most need the low rates are the ones who won't get them.
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