#2
Consolidation loans are rarely a good idea, you will still have the debt, probably for an even longer period

What is the amount of the outstanding loan and APR?

What is the amount on card and APR?



A lender will look at the new loan amount being debt in addition to your existing debt (no guarantee you will use it to pay of the others) so affordability will be based on your debt being existing loan+cc+new loan....you would be looking for that total to be less than half your income



Probably best heading to the Debt Free Wanabee board for help of getting the debt down/gone...have you tried a 0% BT card to move the credit card debt to and save interest?

#3



Hi i have some debt in a loan and credit cards i have 3 years left on loan and 3 years min payments to get card payed off would it be beneficial for me to take a loan out and pay both of with that? i have been looking at the Sainsbury's bank one for 5%
Originally posted by colesy88


It will only work if A you close the credit card account and pay it off as soon as you get the loan and B you then dont go and get into more debt.



As Caz points out lenders will see the loan as additional debt so you might not even get a loan with a suitable rate to make it worthwhile.



As to whether you could get the 5% you speak of well it will depend on your credit history.

#4



Hi i have some debt in a loan and credit cards i have 3 years left on loan and 3 years min payments to get card payed off would it be beneficial for me to take a loan out and pay both of with that? i have been looking at the Sainsbury's bank one for 5%
Originally posted by colesy88


If you are only paying off the minimum on your credit card/s then you will not pay them off within 3 years.

If you do get a consolidation loan to reschedule your debts what happens say next year your car is wrecked or your boiler needs replacing etc etc.

The only sure way to reduce debt is to earn more than you spend.

#5



Hi i have some debt in a loan and credit cards i have 3 years left on loan and 3 years min payments to get card payed off would it be beneficial for me to take a loan out and pay both of with that? i have been looking at the Sainsbury's bank one for 5%
Originally posted by colesy88


If you are only paying the minimum payments on your credit cards, then it's a fair assumption that you are on a very tight financial budget and are struggling with your current liabilities.



In such a situation, it's doubtful you will get another loan and certainly not at the headline rate.

#6



If you are only paying the minimum payments on your credit cards, then it's a fair assumption that you are on a very tight financial budget and are struggling with your current liabilities.



In such a situation, it's doubtful you will get another loan and certainly not at the headline rate.
Originally posted by poppasmurf_bewdley


That's a very good point, only a very few customers are offered the headline rate of 5%, everyone else is dependant on there credit scoring as to what rate of interest is applicable.



Much better to be looking at other ways to get rid of the debt, further borrowing is certainly not the answer.

#7
Ask yourself the question - am I willing to turn a 3 year debt into a 5 year debt? Because basically a consolidation loan the majority of the time is just extending the time you are saddled with debt.

#8



Hi i have some debt in a loan and credit cards i have 3 years left on loan and 3 years min payments to get card payed off would it be beneficial for me to take a loan out and pay both of with that? i have been looking at the Sainsbury's bank one for 5%
Originally posted by colesy88


If you can take out a big enough loan over 3 years at that rate, pay off the cards and cancel them then you would be better off.



Will you get a loan that effectively doubles your debt at 5% interest for debt consolidation?



Probably not.



You should overpay the highest interest card first, sell stuff and down value your car to help.

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