I also wonder if I am just being unreasonably stubborn in insisting that I pay off my credit card and overdraft as they are, rather than getting a loan, which would be at a lower rate of interest. But I spent a few years caught in the trap of constantly consolidating and refinancing everything, which is why I ended up with such a massive loan five years ago and I don't really want to go down that road again. So in a way, the higher interest is the punishment, so to speak, for having let so much build up on the credit card again, and the length of time it takes to pay it off is the reminder needed to not do it again.
So basically I am wondering if I should just go to the bank and see if I could organise a loan to cover everything and just take the pressure off a little bit (not to mention allowing the credit card to once more function as my security blanket, only to be used in case of emergencies but actually capable of being used in emergencies, which it isn't at the moment since it's nearly at the limit).
Here's what I am faced with paying at the moment:
- Loan payment of 490 euro - last payment due at the end of June
- Dentist bill of 60 euro - one more payment due at end of March
- Dentist bill of 184 euro - three more payments due, last one at end of May
- Credit card - 3,820 euro
- Overdraft - 2,415 euro
I think I have a severe case of debt fatigue or rather juggling debt fatigue. Which is leading me to think that getting a variable rate loan might be a good idea. If I took out a loan over 24 months I would have payments of around 450-500 per month. But it would allow me to apply for that financial aid and whenever I received that I could put it towards the loan immediately and, for example, if I get a tax refund, that could go towards it immediately too. So that I would still hope to pay it off in full before the end of the year but would give myself some breathing space for the next couple of months. Or else I just need to suck it up and get through the next three months as best I can, hoping that nothing else happens that will require any kind of financial input.
In the greater scheme of things and compared to how long I have now been paying off debts, three months really isn't a long time. Once I've made my final payment for the dental bills I could then apply for the financial aid and put that towards clearing my overdraft, which would leave just the credit card. Just! Ha! But with no payments needing to go towards my loan anymore, I could divert that, plus the little bit I've been using to chip away at the credit card and overdraft as best I could all to the credit card and clear it within a few months, especially if I get a tax refund in the meantime as well.
Any constructive comments appreciated (but please, none about how stupid with money I've been and sometimes continue to be, I know all about that and am really not sure my self-confidence, lacking as it is, can take any more beating). Am I just being tempted with the idea of a loan because of debt juggling fatigue or does it really seem to be a sensible option?