Loan or Credit Card

Debtsleepless · 20 June 2017 at 5:37PM

I was wondering which option is the best - a loan of £15000 over 5 years at 3.8% or keep moving balances from 0 % cards and paying the transfer fees each time - repayments would be around £275 on a loan and I am trying to pay £300 a month on the card.
This is only half of the card debt!

I am aiming to have all debt except from mortgage paid off in 4 years if possible.

Pixie5740 · 20 June 2017 at 7:42PM

The loan would cost you £1,363.21 in interest assuming you can achieve an APR of 3.8%. Two balance transfers within a 5 year timescale is likely to cost you less than that. Three balance transfers and it might be six of one and half a dozen of the other.

EssexHebridean · 21 June 2017 at 11:53AM

Before you look at any form of consolidation you need to get your SOA (Statement of Affairs) sorted and be certain that you have a workable budget that you are actually sticking to. If you need the SOA link then you will find it at the top of this board in the "sticky" post there.

We've seen SO many folk on here who've gone the consolidation route without having the building blocks fully in place to make sure it will definitely work - get that SOA done, feel free to post it in here and we can cast an eye over it and see if it looks sound, and if there are any further savings you may be able to make.

Make sure that the SOA is accurate and reflects what you're actually spending currently - there's no point in putting something together that reflects what you think *should* be happening, or what you think other people expect to see - start with the real current picture and then tweak it from there are savings are found.

Keep your eyes open for fee free 0% deals too - they are out there although usually for shorter terms. I got a Sainsbury's bank 0% deal last year for 22 months, no fee. (Not for consolidation, I hasten to add!)

Loan or Credit Card

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