# debt consolidation



## 54red (23 Feb 2010)

quick enough question.... have a few loans that are not going away because of repeated top ups, over spending etc, but im now determined to deal with the debt. i owe €11,000 to CU (€300 per month, 44 months left), €8000 to friends first (€300 per month, 26 months left) and prob worst of all €7000 (€60 at least per month interest) on halifax credit card. the CU is offering me €26,000 at 7.8% to clear all of these, leaving me to repay €635 a month for 48 months. i think this is a good idea, is it? i plan to totally get rid of credit card and never get one again, or if i really need one to book stuff, one with a limit of €500 or something. please help


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## jack2009 (24 Feb 2010)

It is a better deal than going on as you are.  The credit card interest must be in the region of 13%.  You do appear to have an interest free loan from friends so maybe borrow less from the credit union but guess you would really like to clear your friends for what you owe them.

Open for correction but loans are hard to get these days and think you will find it hard to beat 7.8% even if someone does quote abc bank offering say 5% term loans you might not succeed in getting one.


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## 54red (24 Feb 2010)

thank you for reply, sorry i should have clarified the €8000 owed is to Friends First Finance! so if i pay it off staright away the amount will be less. dont think i would get loan from bank alright so maybe CU is best option


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## jack2009 (24 Feb 2010)

54red said:


> thank you for reply, sorry i should have clarified the €8000 owed is to Friends First Finance! so if i pay it off staright away the amount will be less. dont think i would get loan from bank alright so maybe CU is best option


 
sorry I miss read.  Is there something wrong with the friends figure so?  As 26 months at 300 is only €7,800 but I would have expected a higher amount to include future interest.


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## 54red (24 Feb 2010)

whatever way its structured, i have to pay €307 a month till end of term but if i pay it all now its about €7350, so that explains the interest i think


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## jack2009 (24 Feb 2010)

54red said:


> whatever way its structured, i have to pay €307 a month till end of term but if i pay it all now its about €7350, so that explains the interest i think


 
It would appear you are getting a better rate from friends first than what you would get from CU so perhaps you would be better to leave the friends first loan in place.


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