Getting a loan to pay of credit cards right or wrong thing?

i have 4 credit cards which are up to the limit and an overdraft, i have been offered a loan to pay it all off ВЈ7500 over 5 yrs, the monthly repayments are just over ВЈ200 per month my minimum payments for the credit cards were over ВЈ200 per month.
Also have been offered the repayment insurance which is ВЈ65 per month (added in monthly total already) is it really worth having this and am i doing the right thing?
I am self employed

Its a great idea if the interest rate on the loan is less than the interest rate on your credit cards, which is usually is. If your lender is smart, they will make the payment directly to your credit card company so that you can't make the mistake of putting some of it towards your credit card debt and then spending the rest somewhere else.

yes, do it and learn from it! but only if from a reputable bank, and if the interest is less than what you pay already.

Its a right thing because the interest rate on overdraft amount is high and you have 4 credit card so its good to take a cheap loan and pay all credit card amount.

Some of the company who help you to get cheap loan for solve your problem.
ask4loan.co.uk is one of them.

definitely NOT the loan is probably a secured loan - ie secured on your house if you do not keep up payments on the loan your house will be re-posessed, credit card debt is unsecured the worst they can do is obtain a CCJ and then send bailiffs to confiscate goods if you do not pay, also repayment insurance is a complete rip off avoid it like the plague especially as you are self employed

yes is the answer - I did this and cut up my cards what a relief - I did my loan through my bank as a personal loan not attached to my home.

A loan is only worth getting if the interest on the loan is less than the interest on the credit cards. It usually is! Repayment insurance protects you against not being able to pay due to sickness, unemployment etc. It depends on how secure your work is and how you would cope with repayments if that work stopped etc.

One source of your problems is your attitude. You mention the monthly payment, but you don't mention the interest rate. You need to fix your attitude and stop thinking in terms of the payment. I know this sounds harsh, but I'm trying to make a point for your own good. If the interest rate is lower, then it's probably a good idea.

Question: what's going to happen to the credit cards. Many people leave the accounts open, then can't resist the temptation. So, in two years, the cards are maxed out AND then have an installment loan. Cut up at least two of the cards.

So called "repayment insurance" probably does not insure the repayment of the loan. Most of the coverages that I have seen don't cover what you think they do and even that coverage has so many exceptions that it's worthless. Don't take it. Put the money against paying your bills down faster or saving it in a reserve or emergency account.

If you follow the advise of Martin Lewis the finance expert guy off GMTV etc then switching your cards to 0% cards is the best way to go.
Cut up the cards so you dont use them again & set up direct debit to make sure you dont miss the minimum payments.
I do this every time & it works fine.

TAKE THE LOAN.
Most ВЈ7500 loans over 5 years ( this is quite normal ) from banks are not secured to the home, IF it is then they have to tell you - so ask that question, but i very much doubt it-

People here have said about interest rate, a loan like this would have an interest a lot lower then the credit cards, the lower the rate the better, so if you want to phone the credit card people and check the rates, then look at the APR on the loan, that should make you feel better.

Things to consider with the loan is that it will be ONE rate, someone here said about your attitude? - forget that - just make a plan and use your head. yes the rate is important but if you have 4 credit cards and a overdraft that's 5 interest rates you currently pay each month compared to 1. (0% cards help, but 0% for how long? even at ВЈ200 a month with a loan it will take you 5 years to clear the balance, will having 4 new credit cards each 6-9 months going to help?)

The ВЈ200 you pay at the moment are the minimum payments on the cards, does this ВЈ200 figure include any interest you pay on your overdraft, (get a bank statement and look at how much you paid last month and add this to the ВЈ200 figure). Then you can compare your monthly outgoings correctly, weather you will still pay around the same amount each month, or a bit less, you will be "paying" the loan off each month. With the minimum credit card payments you are really only clearing the interest not the balance. (look at your last credit card statement, go to the line were you last paid, then look a few transactions after it - for the interest being deducted- take this figure away from the minimum payment you made and try not to faint when you see you have paid off almost **** all)

The repayment insurance is offered with loans but its down to you to decide. The insurance on the loan is optional to take, and to cancel, you can cancel the insurance 4 years in if you like, in fact you can cancel it at any time. This will being your loan repayment down to ВЈ135 but its worth thinking about why you would have it so....

Ask the Major question "you are self employed, are you covered?, if so what for?"

Most loan insurance will cover accident, sickness, death etc. As to weather its worth it, look at it this way

RIGHT NOW YOU HAVE MONEY COMING IN TO YOUR ACCOUNT EACH MONTH,
WILL YOU PAY A EXTRA ВЈ65 FROM THIS MONEY TO PROTECT YOUR LOAN PAYMENTS?

IF NOT AND YOU ARE SICK, HAVE AN ACCIDENT ETC YOU WILL HAVE TO PAY ВЈ135 EACH MONTH WITH NO MONEY COMING INTO YOUR BANK ACCOUNT - BECAUSE YOU CANT WORK -

The loan i think is better for you long term, and may help your monthly out goings, just check these few things first for yourself to decide what you want.

The one thing to check and be very, very clear about is that you are self employed are you covered for the insurance, if not then don't take it - set something else up if your worried

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