I dont think the scale of my problem is huge and I know there are people worse off but I have £700 loan, £600 credit and a £700 overdraft and I owe out about £400, I am thinking of getting a loan to cover most of this, but it seems when I tell the bank I am considering consolidation that the interest rate increases! Shall I say its for a different purpose? would anyone sugest I don't consolidate?
2007-01-02 19:48:20 · 5 answers · asked by its_hackett 1 in Business & Finance ➔ Personal Finance
I can't afford £3000 over 1 year! the most they'll offer is £2000 over 4 years, i'll end up paying £1500 INTEREST!!
2007-01-02 19:57:37 · update #1
Yes consolidation is always cheaper. Banks prefer the truth.
Get one for £3000 payable over one year for the best rate and treat yourself to a holiday on the surplus!
Then just get the £2000 pay off the £700 overdraft the £700 loan and the rest divide between the other 2.
2007-01-02 19:51:40 · answer #1 · answered by puffy 6 · 0⤊ 0⤋
When you tell the bank that you want to consolidate they know that you are in difficulties and they do not want you as such a risk so they up the rate to put you off. If you do decide to go ahead then they will make big money from you. Default on a payment and more charges will be heaped on. Pay up the debt early and they will still charge you for doing so. Once they have you your theirs and you will not get away. Do not take out loans to pay loans as it is a slippery slope which start to get steeper.
Go to each of your lenders and agree a payment system with them and as long as you stick to it you will soon be out of debt. They would prefer that action than to have you default and end up perhaps not getting any of your loan back. Best of luck.
2007-01-02 20:03:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Depending on your income you could easily get a credit card with 0% for 9 or 12 months.
No loan can offer this good a deal.
Don't fall into the trick of paying too little per month or the free period will end and you will still owe loads.
Do this and tranfere to another card at the end of the free period.
2007-01-02 19:54:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I agree with Bob. Just make sure that you keep a close eye on the financial situation, because as soon as the 0% period is over, the interest rate will go sky high! But there's nothing wrong with transfering the balance to another credit card. Look out for 0% balance transfers.
2007-01-02 20:43:32 · answer #4 · answered by Rico 4 · 0⤊ 0⤋
Don't do the credit card trick. Credit cards make debt too easy, right up until you find you can't aford it.
If your bank it taking the proverbial, shop around. Try online banks and see how they stack up.
2007-01-02 20:01:58 · answer #5 · answered by Alice S 6 · 0⤊ 0⤋