How to get loan to clear cards

[Kevinthesnipe]

After a bit of advice on a name change please.
Covid hit us hard and I now have 2 credit cards and a very account which are at the max limit.
Making slightly more than the min payment but it’s not really making a dent. We’re now stable and hoped to be able to merge the card debt and a small loan I’ve e got. It would mean the new loan would be the only debt I’ve got and would take my repayments from £300 to under £200 plus the debt would actually be going down (and I could even overpay) to be actually cleared.
This all sounds good in theory, except because of my wages v debt my affordability is seen as low. Is there any way around this? I really don’t want to be in this hole forever and I want the credit accounts closed as soon as I can.

I would have a look on Money Supermarket, at their 0% balance transfer cards page. Some of them are offered for lower credit ratings. Read through thoroughly and see if any of them sound like a good fit. Don't just apply and hope, because that can affect your score negatively.

You might be able to get a deal for 0% for 18 months or so. Then transfer everything to that, pay off as much as you can each month. Then when you have a month left, look for another deal. You will have to pay about 3%(usually) to move deals, but it's cheaper than a loan. Plus you paying it reliably, and over the minimum every month will boost your rating.

I agree with 0% credit card
You can move debt and over pay where you can, work out how long to clear the debt in say 18 months 2 years and hide the card.

Think about every penny you pay out, avoid all the extras in shopping, coffee out, takeaways, it’s possible if you stay focused.

How much is the debt and do you have any CCJs?

I agree with the suggestions of 0% transfer cards..... if you qualify.

It's often not a good idea to take out a loan to clear credit card balances. Because credit cards are unsecured debts whereas loans generally aren't.

You also need to look at interest rates, not just the monthly payments.

I'm also concerned that the debts seem to be in your name, but you are referring to 'we' and'us'... I hope you are at least married, but it's rarely a good idea to take on debt for someone else.

There is useful debt information and an advice forum at Moneysavingexpert. Do check it out.

Thanks. Sorry this debt is in my name but I am married (all wages and cb in the one pot and one joint acct).
One cc I’ve had since I was 18 and got a student 0% it’s at £5500 it’s 21.9% min payment £130 interest is £90. No ccj, other debts come to £1000 plus loan balance of £2000.
On mse credit club it says I’d get a 6 month 0% with Aqua, I can’t see them giving me such a high balance for transfer is it still worth it?
I earn approx £18000, i just worry that at trying to clear 5k at 40 per month is never going to work

@Kevinthesnipe - I urge you you post on the MSE forum. You're much more likely to get good advice there.

If you're married and it's shared debt, could your husband take out a loan for £5k?

What are his finances like?

The way lenders look at it from a loan perspective is you have £5k debt, you're looking for a further £5k and whilst you say you'll spend it on reconsolidation you could go mad and buy a fur coat instead!!!

£10k would be more than 50% of your yearly salary so I can see why you're having issues from an affordability perspective.

As previous posters have said, the only alternative would be a 0% balance transfer credit card so at least some of it is interest free and chuck all spare money at it during the interest free period

Work out how much interest you are paying now x6 which is a saving, and use that to help clear more debt, and switch again come 6 months.

Do you have a mortgage?

Husband had to change jobs during covid taking a huge pay cut, and had to default when he was out of work for 3 months so his credit is poor. My credit is good it’s the affordability as you say I’ve already got debt almost half my annual wage.
Our mortgage is a fixed rate for 3 years.