Loan or Balance Transfer?

Zena · 14 August 2005 at 4:27AM

Hi, new to board but not the site, have recommended it to everyone I know! Have gained much info from these boards so thanks for sharing so much good advice!

Wondering if you would be kind enough to share your thoughts. I've gone through the stuff on the site and am a bit confused as to whether I would be better to take out a loan or do a balance transfer or both?
I am consolidating about £20,000 worth of debts and not very good at remembering to switch cards etc on time! So was thinking about the Texaco Card (at the low rate) to transfer half of the balance and get a loan for the other half but want to have flexibility to make over payments to repay the debts early. (Or should I try Texaco for the whole lot?). I have about £60,000 worth of equity on my property but am reluctant to use that to remortgage again - although I do come out of my tie in at the end of November. Any suggestions please? Many thanks

Zena

grumbler · 14 August 2005 at 3:05PM

Zena wrote:

...about £20,000 worth of debts ...was thinking about the Texaco Card (at the low rate) to transfer half of the balance ... (Or should I try Texaco for the whole lot?). ...

I think it is better not to expect getting a high credit limit with this card. Usually they give very low limits (if compared to other cards) that is quite understandable.

mountainofdebt · 15 August 2005 at 10:15AM

Hi Zena

Welcome to MSE!

As grumbler says don't expect a high balanace with Texaco ...although I guess soemthing @ 3.9% is better than nothing!

What sort of debt are we talking about? Loan or credit cards? How many are we talking about and are you up to your limit on any of them? Have you been late with any of your payments?

I know I'm asking more questions than I'm answering as I guess the answers will determine the advice that people can offer you.

I have found Martin's tart alert facility on this site (can be found on the top banner) to be really useful. All you need do is put the date that the offer ends & a mobile no. and 6 weeks before the date, you will receive a text message from martin (not personally I guess!) telling you, you need to sort things out. Mind you first time I had one I thought Martin lewis......don't know any martin lewis! (Sorry Martin!)

Zena · 15 August 2005 at 2:44PM

Hi, thanks! Well, I have 6 cards - none are up to limit. I have been late paying a couple of them recently - bad I know but not been well! Hence is time to really get sorted and stay off the plastic! Wondering if flexible loan would be better than the cards?

grumbler · 15 August 2005 at 3:00PM

*I think* the best strategy with flexible loan could be:

1. Apply for a loan while you credit history is not spoiled by many applications (it is already damaged by late payments though). Be aware, that the advertised rate for loans is usually 'typical'.
2. Apply for as many as possible CCs with 0% or low life-of-balance rates.
3. Move maximum possible amount to CCs from cards with highest rates.
4. Pay the rest with the loan if it has lower rate.

mountainofdebt · 15 August 2005 at 11:07PM

Also if you can't trust yourself cancel the cards after yo've cleared them!

Loan or Balance Transfer?

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