One single payment for debt

Former Member

I want to get loan to pay off all my debt and then only left with one single payment. Any recomendations? I thought about virgin. I also want to borrow £3000.

Former Member

I'd seek advice from a financial adviser. And why on earth do you want another 3 grand of debt?

Former Member

Kentish wrote:

I'd seek advice from a financial adviser. And why on earth do you want another 3 grand of debt?

well i'm assuming she already has £3k debt and therefore will still be in the same amount of debt but will just be able to manage her bills better if she pays off the existing bills and is left with 1 big 1.

Former Member

but if she's in 3k of debt, consolidaes that and orrows 3k on top- she'll be in 6k debt, which is what it reads like.

Former Member

lucifer devil wrote:

well i'm assuming she already has £3k debt and therefore will still be in the same amount of debt but will just be able to manage her bills better if she pays off the existing bills and is left with 1 big 1.

I think she needs professional advice on her existing money problems. Those adverts on daytime TV for debt consolidation companies do not constitute professional advice. One payment might seem simpler, but if you end up owing more for longer then it's not worthwhile.

Former Member

Kentish wrote:

I think she needs professional advice on her existing money problems. Those adverts on daytime TV for debt consolidation companies do not constitute professional advice. One payment might seem simpler, but if you end up owing more for longer then it's not worthwhile.

I know. They never actually suggest changing your spending habits while you're repaying your debts, just 'one simple phonecall' which will instantly make you able to spend money you don't have again. :rolleyes:

Former Member

Consolidating your debt can make sense, especially if it's in high rate cards like store cards or expensive purchase agreements. You can get a cheap loan from Egg or similar and halve your interest in some cases.

Of course, if you consolidate using some of the companies you can end up paying for years and years and pay much more in the long run.

Former Member

Would I be right in thinking you can get a 0% APR card for 6 months, pay off some on there, then after 6 months switch over to another, and carry on the cycle until you have no debt left? Just a theory...

Former Member

katralla wrote:

but if she's in 3k of debt, consolidaes that and orrows 3k on top- she'll be in 6k debt, which is what it reads like.

no she won't.

if she has 3k of debt and takes out a 3k loan to pay off the existing 3k debt then she'll still be in 3k of debt.

Former Member

TheShyBoyInTheCorner wrote:

Would I be right in thinking you can get a 0% APR card for 6 months, pay off some on there, then after 6 months switch over to another, and carry on the cycle until you have no debt left? Just a theory...

Yes, you can do this. Most people don't bother to switch though.

Some cards have fees now for transfers, though depending on the amount and the length of free period the fee may still be less than the saving.

but if she's in 3k of debt, consolidaes that and orrows 3k on top- she'll be in 6k debt

She's not actually said that she's already got 3K of debt, just that she wants to borrow three on top of her consolidation.

Former Member

~kaz~ wrote:

I want to get loan to pay off all my debt and then only left with one single payment. Any recomendations? I thought about virgin. I also want to borrow £3000.

If its credit card debt ? Or even if its not and you have a good credit rating then you can do a balance transfer from a 0% card which will buy you time to pay down the debt.

Former Member

Be careful

You need to get some proper advice before consolodating anything. I know it seems like its gonna make things easier for you, but in the long run you just end up paying a lot more money. I've been in a similar situation in the past, which after a lot of hard work I managed to dig myself out of a really deep hole.

The only advice I would give you is to look into all the alternatives. Whatever you do, dont pay anyone for advice cos its all freely available.

I found the advice section on this site really useful.

Good luck, whatever you decide

Former Member

lucifer devil wrote:

no she won't.

if she has 3k of debt and takes out a 3k loan to pay off the existing 3k debt then she'll still be in 3k of debt.

er, yes. And if she had 3k of debt, which she consolidated and then borrowed 3k on top she'd have 6k of debt.

Former Member

katralla wrote:

er, yes. And if she had 3k of debt, which she consolidated and then borrowed 3k on top she'd have 6k of debt.

what?!?!

she's borrowing £3k to pay off her existing debts of £3k.

therefore will be £3k in debt.

Former Member

lucifer devil wrote:

what?!?!

she's borrowing £3k to pay off her existing debts of £3k.

therefore will be £3k in debt.

Kaz's first post sounds like she wants to borrow money to pay off her debt plus an additional £3000, I think that's what katralla has thought she meant too.

Former Member

Glittery Vodka wrote:

Kaz's first post sounds like she wants to borrow money to pay off her debt plus an additional £3000, I think that's what katralla has thought she meant too.

yeh i see what you mean.

i thought she was just saying how much she wanted to borrow.

Former Member

consolodating your debt

sometimes that can be a big mistake, but if you go ahead make sure that you can comfortably afford the repayment, or you'll end up in a spiral of debt.

Former Member

lucifer devil wrote:

what?!?!

she's borrowing £3k to pay off her existing debts of £3k.

therefore will be £3k in debt.

That is what I am meaning. I want to borrow £3K to pay off my £3K of debt that I already have. I have looked into Virgin and they are offering £150 a month repayments over 2 years which I can manage easily. Also interest is 6.9%.

Former Member

6.9 sounds good. have you looked at lowering the rates you have with existing credit?

Former Member

I can't lower the rate really. I got a laptop and want to pay that off coz that interest is high.

Former Member

moneybackbank.com 5.5% APR. They turned me down though but it's worth a try!

Former Member

tittletattle wrote:

moneybackbank.com 5.5% APR. They turned me down though but it's worth a try!

Why they turn you down? I hope i dont get turned down. I can afford the repayments so that should be all that matters.

Former Member

So could i but i think because its such a brilliant rate you need to have a really brilliant credit history and all i had was the one credit card. I went with Egg in the end, still a good rate and theyre really flexible, once you've made 3 months of payments you can have a 3 month payment break if you need it. Theres no penalty for early repayment either, which all adds up! x

Former Member

I only have one credit card too. I got accepted for credit when I got my laptop, is that a good sign?

Former Member

it depends on the company.

i no doubt have a bad credit rating but would still be able to get catalogues/storecards. annoyingly because they know they'll get extra money off me! but, i have the sense not to take out any more storecards.

Former Member

how about ocean finance? have u seen their adverts?

"we were in't fokkin shit 'nt ocean fiiinance gave us't money to build new conservatory"

give them a try

Former Member

urgh i'd avoid them just because of their adverts.

Former Member

lucifer devil wrote:

urgh i'd avoid them just because of their adverts.

have to agree with you there.

I have already been acepted by Virgin so all is well. Going to pay off my credit card and cut it up I think. I don't have any store cards thank god!