I think getting a loan is the best option. I had a similar amount of debt over 9 cards in mid 2008. I also had a good credit score though as I had not missed payments. Two of the cards were 5% for the life of the balance so I knew there was no point in getting a loan for a higher rate, but I went to Natwest and asked for a loan to consolidate the rest. They were so helpful and sat down and went through all my debt and got me a loan. Now, 12 months later I only have a few months to go (although I have put nearly every bit of my wages to it since then).

Speak to your bank and be honest, remember they have seen it all before.. and worse! If you are looking at keeping monthly costs down, you will probably be looking at 5 years for the loan. The best thing is, because it is direct debit you literally have to pay it off. Make sure you cut up the cards after they are clear, then you will know at the end of the loan term it's all gone!!

Most importantly - stay positive. It can be so daunting when you have reached this point, but there are people out there to help and it IS possible to pay it back.

Hi dcl

Hoopefully you've already done this, but make sure you cut up all your credit cards so you don't start using them again. This is especially important if you get a consolidation loan - a lot of people fall into the trap of getting a consolidation loan then spending on the cards again, ending up with both the loan and the cards to pay off

Angela

dcl,

I'd suggest going to see the CAB or National Debtline or the other charities to have a look at your debt, as if you are struggling now to repay when they are 0%, you will struggle even more on a higher %!

Most credit cards even on 0% require that you pay a minimum each month, typically at least 1.5%, so over the course of 6 months you should have paid off 9% of your debt on that credit card.

Have you closely looked at your budget, what debts you have, when the interest changes, and how much you are paying off each month, and at reducing your other outgoings?

If you cannot afford these, then securing on the house (if possible) may be the only way that you can handle this level of debt.

Good luck

Sparky.

dcl:

...........going down the unenforceable route would be shooting myself in the foot........

Agreements taken out after 2007 are virtually guaranteed to be enforceable, so yes you would be.

Thank you mrstellao really helpful, thinking long term a loan may be the answer although i am uncomfortable about securing agaisnt house, but the problem is if i dont then i may be still paying credit cards of in 20 years! and if i was able to borrow money over 7 years the monthly payments would come down and the money will actually be paid off.

The apr once 0% finishing will on average be 18 - 19%

I havent got any defaults on my record as yet so maybe going down the unenforceable route would be shooting myself in the foot

thanks again, got me thinking

In my opinion you'd have to answer several questions suitably before deciding to take out a loan.

For:

1. What is the interest rate on all your cards once the 0% ends? If it's around the 18-19% mark you might be much better with a loan.

2. You're continually getting charged interest with your credit cards. If you're only making the minimum payment, your balance may actually be increasing!!! With a loan, your interest is worked out up front and is (normally) fixed rate, and no further interest is applied to the balance once you take out the loan.

Against:

1. As Basa48 said, you might have trouble getting a loan. At that amount it's likely the only loan you'd get offered is a secured loan. This means that the loan would be secured against your mortgage or home (if you own one). Failure to pay the loan terms would mean that the lender effectively has the rights to reposess your house, so if you're not dilligent you could end up without a roof over your head.

2. Again, as Basa48 said, the debts may be unenforceable. However as you've pointed out the debts may be old but the CCs are not, so it's unlikely this would be the case. If this option was open to you, bear in mind you'd have to be prepared to be involved in a lengthy battle with the CCC's and you could end up with defaults on your record. I'm not saying this to try and dissuade you I just want you to know that you'd need to be committed to this course of action.

thanks for quick reply

although the debt is proably more then 4 years old i have been transferring onto 0% cards, so the cards are less than 4 years old.

looks like i would proably need a consolidation loan, as although it is high payments i am making each month i can just about afford it but i am worried that i get into a position that i can no longer afford it, so i would rather try and get the monthly payments down now rather than later, and would it be benifcal having just one lender rather than the six ?

How old are the credit cards? If older than 3-4 years they might be unenforceable anyway.

A loan might be an answer but I doubt you could obtain a loan for that amount considering your present indebtedness (although some might consider it if it were explained as a consolidation loan).

The only other solution would be a debt management plan or by personal negotiation with the credit companies.

All alternatives bar the loan will trash your credit file, perhaps for up to 6 years.

Hi guys

i need a bit of advice i am trapped in credit card debt, i owe £20604 over six credit cards. I am paying the min payment on all of these and i relise these will proably take years to pay off. Do you think a loan would be the best option to paid these off? and where is the best place. My intial worries are the monthly payments as these are quite high, around about £500 per month.

My credit rating is ok i think, i have never missed any payments on anything and i have a mortgage