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  • FIRST POST
    • Gardenequipment
    • By Gardenequipment 30th Jun 18, 7:20 PM
    • 4Posts
    • 0Thanks
    Gardenequipment
    Credit cards loan consolidation
    • #1
    • 30th Jun 18, 7:20 PM
    Credit cards loan consolidation 30th Jun 18 at 7:20 PM
    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.
Page 1
    • Edi81
    • By Edi81 30th Jun 18, 7:37 PM
    • 498 Posts
    • 428 Thanks
    Edi81
    • #2
    • 30th Jun 18, 7:37 PM
    • #2
    • 30th Jun 18, 7:37 PM
    Debt consolidation rarely works.
    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.
    • zx81
    • By zx81 30th Jun 18, 9:10 PM
    • 17,665 Posts
    • 18,802 Thanks
    zx81
    • #3
    • 30th Jun 18, 9:10 PM
    • #3
    • 30th Jun 18, 9:10 PM
    Keep overpaying. It will rapidly come down.
    • Dobbibill
    • By Dobbibill 30th Jun 18, 9:49 PM
    • 3,203 Posts
    • 4,106 Thanks
    Dobbibill
    • #4
    • 30th Jun 18, 9:49 PM
    • #4
    • 30th Jun 18, 9:49 PM
    Having 4 cards to pay instead of 1 loan allows you to overpay on one credit card (normally the one charging the most interest) while paying just over the minimum on the others. You can then recycle this payment to the next card when it is paid off.

    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.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • lindens
    • By lindens 3rd Jul 18, 3:07 PM
    • 2,044 Posts
    • 6,940 Thanks
    lindens
    • #5
    • 3rd Jul 18, 3:07 PM
    • #5
    • 3rd Jul 18, 3:07 PM
    Instead check out the snowball calculator and ensure you are savvy about who you are paying off first
    You're not your * could have not of * Debt not dept *
    • Gardenequipment
    • By Gardenequipment 10th Jul 18, 4:11 PM
    • 4 Posts
    • 0 Thanks
    Gardenequipment
    • #6
    • 10th Jul 18, 4:11 PM
    • #6
    • 10th Jul 18, 4:11 PM
    Thank you for all your replies and advice, I do very much appreciate it. One thing that I struggle to understand is that with a loan my payments would be considerably lower than the credit card cost per month and overall I would be paying much less.
    • Nasqueron
    • By Nasqueron 10th Jul 18, 4:18 PM
    • 4,910 Posts
    • 2,976 Thanks
    Nasqueron
    • #7
    • 10th Jul 18, 4:18 PM
    • #7
    • 10th Jul 18, 4:18 PM
    Thank you for all your replies and advice, I do very much appreciate it. One thing that I struggle to understand is that with a loan my payments would be considerably lower than the credit card cost per month and overall I would be paying much less.
    Originally posted by Gardenequipment
    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
    • eskbanker
    • By eskbanker 10th Jul 18, 6:18 PM
    • 7,502 Posts
    • 8,124 Thanks
    eskbanker
    • #8
    • 10th Jul 18, 6:18 PM
    • #8
    • 10th Jul 18, 6:18 PM
    One thing that I struggle to understand is that with a loan my payments would be considerably lower than the credit card cost per month and overall I would be paying much less.
    Originally posted by Gardenequipment
    Do you actually have an offer of a loan to use for paying off credit card debts, and if so, what is the APR you've been offered?

    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....
    • foxy-stoat
    • By foxy-stoat 11th Jul 18, 12:28 PM
    • 2,186 Posts
    • 1,186 Thanks
    foxy-stoat
    • #9
    • 11th Jul 18, 12:28 PM
    • #9
    • 11th Jul 18, 12:28 PM
    Thank you for all your replies and advice, I do very much appreciate it. One thing that I struggle to understand is that with a loan my payments would be considerably lower than the credit card cost per month and overall I would be paying much less.
    Originally posted by Gardenequipment
    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.
    • MallyGirl
    • By MallyGirl 11th Jul 18, 12:34 PM
    • 2,809 Posts
    • 7,818 Thanks
    MallyGirl
    Thank you for all your replies and advice, I do very much appreciate it. One thing that I struggle to understand is that with a loan my payments would could be considerably lower than the credit card cost per month and overall I would be paying much less.
    Originally posted by Gardenequipment
    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.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
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