Found 20th Jan
Anyone help with the best way to clear this debt

£7900 loan w/santander 3.2% APR - £237.71 p/m

£5000 loan w/neyber 4.9% APR - £114.16 p/m

£3500 credit card with MBNA - 22.9%

I'd like to bring my payments down to £300 p/m to make it more manageable

I've just applied for an HSBC credit card to transfer the balance of the MBNA card to 0% with a 1% fee. This would run out when the Santander Loan finishes and I could then just continue paying off at the same rate

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21 Comments

Interesting! Following the topic!

Given that you have just applied for a new credit card & the amount of debt you have I wouldnt now apply for anything else for 6 months.

How long do you have left on your loans?

In my opinion this isn't the right place to ask ... there are some nutters on this site!

Maybe citizens advise will be able to help you.

citizensadvice.org.uk/

That said you could consolidate everything (£16400) at 2.9% with Sainsbury's for 5 years for £287 a month. If your credit history is a mess I wouldn't even bother risking applying before talking to a professional first.
Edited by: "speric07" 20th Jan

can you not consolidate the loans and then pay off what you can from the credit card or if you get the 0% through all spare money at it.

You have pretty much done all you can do whilst still allowing yourself the ability to obtain credit. If things become unmanageable then there is the iva route or even further the bankruptcy route. You don't appear to be in that much trouble though and both those routes will mean your credit is affected for at least 6 years. Citizens Advice maybe a good call. I don't know if the CCCS still exists but they used to be a charity that did the same job as a debt management company but without having to pay stupid fees but again you will lose your credit for 6 years.

I would say consolidation is the way to go. consolidation to a personal loan of approx 15k should comfortably see you pay approx £270 over 5yrs (Sainsburys). Obviously getting that rate is dependant on your credit history. Using credit cards Balance Transfer deals are good, but you need to be confident you can manage them accordingly and you do not end up spending on them otherwise you will quickly find yourself worse off.
Edited by: "MoWanderlust" 20th Jan

rugbymike

You have pretty much done all you can do whilst still allowing yourself … You have pretty much done all you can do whilst still allowing yourself the ability to obtain credit. If things become unmanageable then there is the iva route or even further the bankruptcy route. You don't appear to be in that much trouble though and both those routes will mean your credit is affected for at least 6 years. Citizens Advice maybe a good call. I don't know if the CCCS still exists but they used to be a charity that did the same job as a debt management company but without having to pay stupid fees but again you will lose your credit for 6 years.



CCCS are now called Stepchange.

Don't under any circumstances use any debt consolidation company who charge a fee, as Rugbymike mentioned Stepchange/CCCS provide exactly the same service but are free.

Sounds like it is getting out of control. Can you try to reduce spending and pay off some of those debt?

I've noticed you've posted similar threads for help/advice since you joined, you really need to make an appointment with a debt advisor at your local CAB. My friend is a debt advisor at our local CAB and he says that just by being honest with your debt situation and exploring different avenues and putting a plan of action in place most clients are able to sleep better at night. They can also contact creditors on your behalf and negotiate lower monthly payments and even 'payment holidays'. You need to get this sorted sooner rather than later.

0% card is going to be the best option.
Do you have any property you could re-mortgage or assets you can liquidate?

Main priority is to repay as much as you can now and get the lowest interest rate possible on the remaining amount.
It's worth going through your monthly outgoings.
Check if you can make any easy monthly savings changing insurance providers, energy providers, mobile contracts, etc.
At that point start working though your monthly budget and get outgoings as low as possible (within reason) so you can pay off as much as possible each month.
The quicker you pay them off the less interest you pay in the long run.

As above, seek professional help. 4 months ago you had Debt of £8,300 now £16,400.
hotukdeals.com/tag/ask…346

As speric07 said Citizens Advice

Maybe stop using hotukdeals to find stuff you can't afford to pay for upfront I also agree with the others that say seek professional advise.

Pay as much off the higher Apr one first.

Stepchange will help but your credit score will go down the pan once you go on an arranged Payments.

If may be worth defaulting then all so they fall of your credit file on 6 years with no trace.

I would also try the mse debt forums.

Consolidating multiple debts into a single loan is now generally considered to be the quickest way for most people to end up doubling their problem. Your loans aren't in bad APRs so I'd just leave them alone and concentrate on getting that MBNA card cleared. If you get the 0% card then great but if not then the chances are you wouldn't get another big loan to cover the rest anyway. You need to concentrate on living within your means and throw every spare penny at MBNA. The moneysavingexpert.com forums are a great resource for people in your situation.

I was thinking just the same as others sounds like a job for Martin Lewis.

whatsoninscarborough

Anyone help with the best way to clear this debt£7900 loan … Anyone help with the best way to clear this debt£7900 loan w/santander 3.2% APR - £237.71 p/m£5000 loan w/neyber 4.9% APR - £114.16 p/m£3500 credit card with MBNA - 22.9%I'd like to bring my payments down to £300 p/m to make it more manageableI've just applied for an HSBC credit card to transfer the balance of the MBNA card to 0% with a 1% fee. This would run out when the Santander Loan finishes and I could then just continue paying off at the same rate



Your debts seem to have risen since your last query 4 months ago.

Opening another credit card and transferring the balances won't work long term, you say your looking at paying £300pm, at that rate the 0% rate will expire before its clear, open new card, transfer and repeat - never ending cycle.

I'd suggest contacting a company called Payplan, extremely helpful to me, and I was in a worse position than you, 5 years down the line, I'm debt free with all creditors fully paid.




Edited by: "andynicol" 20th Jan

from loping into this it seems u are spending a lot of money is that correct or have some other major issues if ur debts gone up by that much in 4 months can't really help u unless u tell us ur situation in full obviously not private life matters but like how much u total income vs how much u need pay towards mortgage bills and family. I know things that I wouldn't have if I was that much in debt like tv landline is just rediciclous these days anyway i would get rid of it if had one ,mobile phone ,internet, nights out buying new clothes unless all my old got ripped ad I couldn't patch them up or shoes and stuff no takeaways or ready meals. I would eat mostly home made cheap meals like lentils and chappatis and reduced foods u can pick up bread and other stuff meats fruit and vegetables and fish at most superstores in late evening times if ur not at work then or get someone else in ur family pick it up if u can't go ur self. The car would probably have to go aswell that would be the luxury I would probably miss the most but u probably done all of that stuff so I can't think ow anything else o yes the heating cold go down abit more and get more clothing in instead. but sorry can't really.help further unless.i new more information than that.

FreeDeal

As above, seek professional help. 4 months ago you had Debt of £8,300 … As above, seek professional help. 4 months ago you had Debt of £8,300 now £16,400.http://www.hotukdeals.com/tag/ask/finance-help-2507346As speric07 said Citizens Advice



clearly they got a loan / card to consolidate last time, paid off the credit cards, then got another one to fund their life they cant afford.

I doubt they will even get another credit card, let alone any other loans to consolidate with 16k+ of unsecured debt already.

they are just papering over the cracks, the wall behind is collapsing

consolidation rarely works, you're just putting off the inevitable, especially if you're consolidating because you are at your limit financially.


Edited by: "eset12345" 21st Jan

If you can, re- mortgage & buy nothing on interest bearing credit again, except 0%

Live and learn

eset12345

clearly they got a loan / card to consolidate last time, paid off the … clearly they got a loan / card to consolidate last time, paid off the credit cards, then got another one to fund their life they cant afford.I doubt they will even get another credit card, let alone any other loans to consolidate with 16k+ of unsecured debt already.they are just papering over the cracks, the wall behind is collapsingconsolidation rarely works, you're just putting off the inevitable, especially if you're consolidating because you are at your limit financially.


We dont know that, we dont know the wage, could have been a one off car purchase - needed for work, change of circumstances - dropped hours to care for someone/contract changes.

When people have non mortgage credit agreement payments and ask for help we should support not judge, no one sets out to have loads of credit agreements, esp with a education system that only teaches basic maths & english and not personal decision making around such - to assume everyone has 'natural ability' in even basic things is a bit Tory minded.

DEBTS are either personal repayments due out with no written/agreed repayment/plan 'contract' or unable/struggling to meet contractual financial agreements as signed.

Our education system fails - the way people approach people/situations - let alone someone's financial affairs.
Edited by: "seaniboy" 24th Jan
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