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  • FIRST POST
    • katie4
    • By katie4 30th Jan 18, 1:16 PM
    • 135Posts
    • 38Thanks
    katie4
    to consolidate or not
    • #1
    • 30th Jan 18, 1:16 PM
    to consolidate or not 30th Jan 18 at 1:16 PM
    Hi
    I seem to gather from the forums that debt consolidation loans are pretty frowned upon. however, i am in the position to be able to put extra money now towards my credit cards the thing is the interest on one is 42% it will take me a long time to pay these off (i have three credit cards)
    currently pushing £400-500 a month onto the highest apr card but i'm thinking it may be better to get adebt consolidation loan to pay off all cards, it would save me thousands in interest take only 3 years and a manageable £250 a month meaning i can then cancel the cards and start putting some money into savings as well.


    would this seem sensible? thanks

Page 1
    • Pixie5740
    • By Pixie5740 30th Jan 18, 1:32 PM
    • 12,114 Posts
    • 17,050 Thanks
    Pixie5740
    • #2
    • 30th Jan 18, 1:32 PM
    • #2
    • 30th Jan 18, 1:32 PM
    Hi
    I seem to gather from the forums that debt consolidation loans are pretty frowned upon. however, i am in the position to be able to put extra money now towards my credit cards the thing is the interest on one is 42% it will take me a long time to pay these off (i have three credit cards)
    currently pushing £400-500 a month onto the highest apr card but i'm thinking it may be better to get adebt consolidation loan to pay off all cards, it would save me thousands in interest take only 3 years and a manageable £250 a month meaning i can then cancel the cards and start putting some money into savings as well.


    would this seem sensible? thanks
    Originally posted by katie4
    This was previously discussed on the Debt Free Wannabe forum.

    http://forums.moneysavingexpert.com/showthread.php?t=5775665

    I count at least 5 different threads about this credit card debt. What kind of advice are you looking for that hasn't already been covered?
    • zx81
    • By zx81 30th Jan 18, 1:35 PM
    • 16,832 Posts
    • 17,830 Thanks
    zx81
    • #3
    • 30th Jan 18, 1:35 PM
    • #3
    • 30th Jan 18, 1:35 PM
    Hi

    currently pushing £400-500 a month onto the highest apr card but i'm thinking it may be better to get adebt consolidation loan to pay off all cards, it would save me thousands in interest take only 3 years and a manageable £250 a month meaning i can then cancel the cards and start putting some money into savings as well.


    would this seem sensible?
    Originally posted by katie4
    No. If you were able to cut the interest on your borrowing, you should continue to pay the £500 a month.
    • DCFC79
    • By DCFC79 30th Jan 18, 1:39 PM
    • 31,642 Posts
    • 19,962 Thanks
    DCFC79
    • #4
    • 30th Jan 18, 1:39 PM
    • #4
    • 30th Jan 18, 1:39 PM
    This was previously discussed on the Debt Free Wannabe forum.

    http://forums.moneysavingexpert.com/showthread.php?t=5775665

    I count at least 5 different threads about this credit card debt. What kind of advice are you looking for that hasn't already been covered?
    Originally posted by Pixie5740
    It was the same OP who started that thread.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Pixie5740
    • By Pixie5740 30th Jan 18, 1:40 PM
    • 12,114 Posts
    • 17,050 Thanks
    Pixie5740
    • #5
    • 30th Jan 18, 1:40 PM
    • #5
    • 30th Jan 18, 1:40 PM
    It was the same OP who started that thread.
    Originally posted by DCFC79
    I know, that was the point.
    • DCFC79
    • By DCFC79 30th Jan 18, 1:43 PM
    • 31,642 Posts
    • 19,962 Thanks
    DCFC79
    • #6
    • 30th Jan 18, 1:43 PM
    • #6
    • 30th Jan 18, 1:43 PM
    Hi
    I seem to gather from the forums that debt consolidation loans are pretty frowned upon. however, i am in the position to be able to put extra money now towards my credit cards the thing is the interest on one is 42% it will take me a long time to pay these off (i have three credit cards)
    currently pushing £400-500 a month onto the highest apr card but i'm thinking it may be better to get adebt consolidation loan to pay off all cards, it would save me thousands in interest take only 3 years and a manageable £250 a month meaning i can then cancel the cards and start putting some money into savings as well.


    would this seem sensible? thanks
    Originally posted by katie4
    There's no specific loans for consolidation, you just choose the option on the application as consolidation.

    Have a read of the first thread in the loans sub forum.

    Your other thread in the DFW board gave some good advice.
    Consolidating only works if you cut the cards up, address the issue for the spending and only buy whats essential.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • DCFC79
    • By DCFC79 30th Jan 18, 1:54 PM
    • 31,642 Posts
    • 19,962 Thanks
    DCFC79
    • #7
    • 30th Jan 18, 1:54 PM
    • #7
    • 30th Jan 18, 1:54 PM
    I know, that was the point.
    Originally posted by Pixie5740
    Lol Pixie, I stepped into that 1.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • katie4
    • By katie4 30th Jan 18, 1:56 PM
    • 135 Posts
    • 38 Thanks
    katie4
    • #8
    • 30th Jan 18, 1:56 PM
    • #8
    • 30th Jan 18, 1:56 PM
    thanks i couldnt find my previous threads

    • DCFC79
    • By DCFC79 30th Jan 18, 2:14 PM
    • 31,642 Posts
    • 19,962 Thanks
    DCFC79
    • #9
    • 30th Jan 18, 2:14 PM
    • #9
    • 30th Jan 18, 2:14 PM
    thanks i couldnt find my previous threads
    Originally posted by katie4
    Click on your name then click Find more posts by xxx.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • falafel
    • By falafel 6th Feb 18, 12:05 PM
    • 8 Posts
    • 0 Thanks
    falafel
    Debts/Loan eligibility
    Hi - I'm sorry i cant seem to start a new thread (which seems to be an issue for other newbies too atm - as a different thread tells me) so i'm just posting here as its in some ways similar.

    Iím looking for any advice on personal loans, as Iím a little new to all this but really want to find a way to pay off an old debt.

    As a background, Iíve lived in UK for about 5 years and am self-employed Ė earning around £35k a year. My wife has lived here the same amount of time, but has a full-time job earning about £32k.

    1) my wife has credit card debt of about $15,000 Canadian (from many years back now, when she admittedly was young and mis-spent!) Ė she has been paying of minimum amounts for years, but itsí now time to try and get rid of this.
    2) We have good credits records in the UK (as her debt is back in Canada), banks accounts, credit cards that have never been behind on debt and no other debt.
    3) We were wanting to take a personal loan of around £7.5k to consolidate that Canadian credit card debt, and pay off the loan over 36-42 months. Hoping for a reasonably low APR. (in anycase lower than whatever the Canadian credit card charges)

    Given Iím self-employed the loan would probably just come from my wifeís name?

    Currently when we fill out loan eligibility test on MSE etc. it comes to a 30% chance of the Sainsburyís loan at 3.9% - most of the others are 10% to 0% chance.
    This doesnít leave me very hopeful! I donít really want to start applying for loans if they are not going to be accepted, or accepted at quite high rates only, as I know hard searches can impact credit scores.

    Would it be better to try with our bank (we have joint accounts with Co-Operative) or credit card institution (Halifax)? Or does that not make a difference

    Appreciate any suggestions
    • zx81
    • By zx81 6th Feb 18, 12:15 PM
    • 16,832 Posts
    • 17,830 Thanks
    zx81
    You may as well try one application, even though your chances are low.

    One search won't impact your credit file much, and in the UK, the credit scores are not used as a basis for credit (or anything else).

    A trip to the DFW board may be more productive though, to see how you can cut costs and pay back faster.
    • bengal-stripe
    • By bengal-stripe 6th Feb 18, 12:43 PM
    • 3,192 Posts
    • 2,085 Thanks
    bengal-stripe
    Hi - I'm sorry i cant seem to start a new thread (which seems to be an issue for other newbies too atm - as a different thread tells me)
    Originally posted by falafel
    Go to the front page of the forum you want to post in: in this case 'The Loans Board'. (Don't go further to individual threads.)

    Top left and bottom left you'll find a button 'New Thread'.
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