Should I consolidate

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  • duran68
    duran68 Posts: 13 Forumite
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    DrEskimo wrote: »
    Do you mind if I ask for more details on your car payment?

    Obviously this will count towards your overall debt, and if you can look at options at reducing this, it would got a long way to helping you with clearing the £11k CC debt.

    Hi , its with Barclays ,can't remember the exact figures but circa 11k @3.9% ,owe £6268 on it as of now
  • DrEskimo
    DrEskimo Posts: 2,347 Forumite
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    duran68 wrote: »
    Hi , its with Barclays ,can't remember the exact figures but circa 11k @3.9% ,owe £6268 on it as of now

    Is that just a straight loan, or a PCP loan with a balloon payment?

    Is it likely you could sell the car for more than the outstanding £6,268 and look to get a much cheaper car with no payments?

    If you were to consolidate with the 8% loan over 5-years, and sell the car/cut budget to free up £250 per month to use as over-payments, you could be debt free in just over 2-years.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    duran68 wrote: »
    just been accepted by HSBC 28mnths 0% balance transfer card ,and shifting the Barclays and Tesco interest bearing cards balance onto that .
    Just enough room?...or some left so you can transfer some of the soon to expire 0% card balance(s)? Reason I ask is that sometimes there's a 60/90 day window for 0% BTs so best to get in quick...even if it's the same 0% it'll be 0% for longer.

    Two further points:

    1. You MUST pay £250 per month towards the cards (you said you could, remember), even though they're 0% interest. You never know what's around the corner! And if you can't/don't, then that's proof that a 5-year consolidation loan wasn't a good option to be considering!

    2. HSBC has a 2.5% minimum payment from memory? Your Tesco was 1% plus interest, and Barclaycard may have been 2.25%? So your minimum payments may well rise compared to what you were paying before. You may need to tighten your belt further.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    DrEskimo wrote: »
    Is it likely you could sell the car for more than the outstanding £6,268
    If it's on HP, if that's the sum of payments x months remaining, and there's some way to go, then the settlement figure could be a good bit less?
  • DrEskimo
    DrEskimo Posts: 2,347 Forumite
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    YorkshireBoy wrote: »
    If it's on HP, if that's the sum of payments x months remaining, and there's some way to go, then the settlement figure could be a good bit less?

    Indeed, as you would be saving on interest!
  • duran68
    duran68 Posts: 13 Forumite
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    DrEskimo wrote: »
    Is that just a straight loan, or a PCP loan with a balloon payment?

    Is it likely you could sell the car for more than the outstanding £6,268 and look to get a much cheaper car with no payments?

    If you were to consolidate with the 8% loan over 5-years, and sell the car/cut budget to free up £250 per month to use as over-payments, you could be debt free in just over 2-years.

    Straight loan ,would probably be lucky to break even if I sold the car
  • duran68
    duran68 Posts: 13 Forumite
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    edited 17 April 2019 at 11:56PM
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    YorkshireBoy wrote: »
    Just enough room?...or some left so you can transfer some of the soon to expire 0% card balance(s)? Reason I ask is that sometimes there's a 60/90 day window for 0% BTs so best to get in quick...even if it's the same 0% it'll be 0% for longer.

    Two further points:

    1. You MUST pay £250 per month towards the cards (you said you could, remember), even though they're 0% interest. You never know what's around the corner! And if you can't/don't, then that's proof that a 5-year consolidation loan wasn't a good option to be considering!

    2. HSBC has a 2.5% minimum payment from memory? Your Tesco was 1% plus interest, and Barclaycard may have been 2.25%? So your minimum payments may well rise compared to what you were paying before. You may need to tighten your belt further.
    Yes the HSBC card is 2.5% minimum payment so my payment on the 2 cards I transfer would be roughly £6 more than I pay now ,but obviously every penny paid in now pays off the debt ,which puts me in a much better position down the line,EDIT,the Barclaycard minimum payment is 2.5%
  • onwards&upwards
    onwards&upwards Posts: 3,423 Forumite
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    duran68 wrote: »
    Tbh no I haven't , but realistically with Tesco offering me a loan @8% I doubt I would get a 0% card anywhere now, Actually I,ll take that back ,just been accepted by HSBC 28mnths 0% balance transfer card ,and shifting the Barclays and Tesco interest bearing cards balance onto that .
    Thanks for your help guys ,I really don't know why I didn't think of a balance transfer card !!


    Great news!

    Shifting between 0% transfer cards is always a better way to get rid of debt than consolidating.
  • shiwen55
    shiwen55 Posts: 124 Forumite
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    duran68 wrote: »
    Hi everyone, ok I currently have £11100 of debt spread across 4 credit cards, various rates of APR , the lowest being Barclaycard @15% ,the highest being around 18% , currently paying the minimum amounts ranging from £81.69 for the Barclaycard down to Virgin @£26.07( still on 0% until July,) my Sainsburys card is on 0% until January 2020 and I pay £56.75 per month.

    So I think I may be better off getting a loan for £11000 and paying every card off straight away , I can get a loan for £11000 @ 8% APR from Tesco @ £ 221 per month over 5 years , I,m currently paying £240 per month for all cards , do you think I,m doing the correct thing in consolidating? PS , I would be closing the Credit Card accounts down too

    See if the loan APR is less than a balance transfer card fee, I'd go for it else balance transfer them
  • MallyGirl
    MallyGirl Posts: 6,626 Senior Ambassador
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    but the BT fee is a one off and the loan was 5 years at that APR.
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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