Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    Help Re Debt Consolidation
    • #1
    • 3rd Feb 05, 8:59 AM
    Help Re Debt Consolidation 3rd Feb 05 at 8:59 AM
    Morning Dudes

    Im currently looking into consolidating my car loan and 2 credit cards.

    My car loan has a settlement figure just now of 3900

    im currently paying it back at 104 a month over 5 years, im about a year into it. I believe the rate is 5.5%

    i have 2 0% credit cards

    sainsburys - 2300
    Cap 1 - 500

    Both cards are at their limit just now and im only paying the minimum.

    Now I know you may think im daft wanting to put 2 0% cards onto a loan but i really think it would help me just to have one payment coming out a month.

    I also have my car insuance due next month this will be 1000 for the year. I cant afford it so would like to put that on the loan as well so I can get everything sorted and start off fresh so to speak.

    any advice would be much appreciated.
Page 1
    • Debt_Free_Chick
    • By Debt_Free_Chick 3rd Feb 05, 9:39 AM
    • 13,149 Posts
    • 9,492 Thanks
    • #2
    • 3rd Feb 05, 9:39 AM
    • #2
    • 3rd Feb 05, 9:39 AM
    Now I know you may think im daft wanting to put 2 0% cards onto a loan but i really think it would help me just to have one payment coming out a month.
    Yep, I do think yer daft ;-) At the moment, you only have to repay 2,800 to clear those two cards. If you put those on a loan, you'd have to pay more than 2,800. Let's call it 3,000 (but it could be much, much more!). Now why on earth do want to chuck 200 at a lender, for nothing? If you've got 200, I'll take it off your hands ;-)

    A single payment seems better, but it's really no different. Do you buy everything in one shop and make a single payment? nope ... so do try to get your head around this.

    Your loan is also at a good low rate. I don't think you'll get a better one at the moment, so I'd be inclined to leave that one alone too.

    Have you looked at all your bills and go the best rates for utilities, mobiles etc? And could you cut out some spending for a while? Try to free up more money each month and get on with paying those cards off.

    When do the 0% periods end (month & date). You want to try & keep that debt at 0% until it's paid off and you may need to shuffle around a little. Post the end dates and we'll make some suggestions.

  • Malestrom
    • #3
    • 3rd Feb 05, 5:44 PM
    • #3
    • 3rd Feb 05, 5:44 PM
    You seem to be panicking because your car insurance is due and you have no money to pay it, rather than because you have some debts? Can you not afford to pay your insurance monthly rather than in one lump sum? If you can't afford to at least cover the running costs of the car then it would seem you are overstretched in other areas and a loan is not going to be the answer. What happens next year when your car insurance (or any other large bill) is due....another loan?

    My advice would be the same as Debt_Free_Chicks, to sit down and do a proper budget. Work out where you can cut back and then use that money to pay off your debts after all your expenses are covered (including the car insurance!). You don't need two credit cards so pay off the Capital One card and close it. Then work on the other credit card. The car loan is at a good rate so dont worry about it. Good luck!
    He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)
    • ffs
    • By ffs 4th Feb 05, 7:27 AM
    • 279 Posts
    • 45 Thanks
    • #4
    • 4th Feb 05, 7:27 AM
    • #4
    • 4th Feb 05, 7:27 AM
    There is only one situation I can think of where your idea makes any sense, and that is if you regularly incur bank charges for missed payments. Reducing the number of failed payments would reduce your charges, since one mistake can easily rack up 100 plus of charges (for say three missed payments), this might out weigh the additional interest costs if you consolidate. However, a higher level off awareness of your current account balance would be by far the better option.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,737Posts Today

6,267Users online

Martin's Twitter