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  • FIRST POST
    • Eduardo1973
    • By Eduardo1973 14th Feb 18, 1:50 AM
    • 1Posts
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    Eduardo1973
    Loan or credit cards?
    • #1
    • 14th Feb 18, 1:50 AM
    Loan or credit cards? 14th Feb 18 at 1:50 AM
    Hi Im totally new to this, Ive a credit card with Tesco that has about 13,000 on it from emotional spending (mum died). Anyhow, Ive a secure job in a local authority, Ive no other debt, car etc. Ive about 60k worth of equity and my wife is paying off her student debt, within the next 3 years shell be 500 pm better off, as a teacher her grade increases every year. Im on a fixed mortgage with 3.5 years to run. I looked into a long term Sainsburys 0% but they will only offer 3.5k on a transfer. Is it better to try 3 or 4 smaller cc and make 0% or just apply for a loan? Do cc transfer require the entirety of the balance or can you dissect the balance on one expensive card?
Page 1
    • T-G-C
    • By T-G-C 14th Feb 18, 11:11 AM
    • 119 Posts
    • 54 Thanks
    T-G-C
    • #2
    • 14th Feb 18, 11:11 AM
    • #2
    • 14th Feb 18, 11:11 AM
    For that amount, consider a bank loan. If your credit file is established enough to receive such a generous credit limit, I cannot see this being difficult to obtain.

    With a balance transfer, assuming this is the mentioned feature, the provider will allow the customer to select the amount of their balance to transfer onto the other card. Unless waived through a promotion, a balance transfer fee applies. You should ensure that enough credit limit to cover the BT fee is left. Some companies such as Capital One will require a minimum credit limit remaining after a transfer.

    If obtaining a bank loan, the debt can be consolidated into one, meaning not having to deal with numerous card companies. It will streamline your debt and allow for a more structured plan to clear the debt.
    All advice provided is intended for guidance purposes only. For specialized debt advice, please contact either National Debtline or StepChange.
    • Candyapple
    • By Candyapple 14th Feb 18, 11:44 AM
    • 2,663 Posts
    • 2,003 Thanks
    Candyapple
    • #3
    • 14th Feb 18, 11:44 AM
    • #3
    • 14th Feb 18, 11:44 AM
    Here is the loan eligibility checker:
    https://www.moneysavingexpert.com/eligibility/loans-calculator/

    Remember if you opt for a credit card, you'll be needing a money transfer card, and NOT a balance transfer card.

    https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

    If you opt for a credit card or several cards, make sure you factor in the cost of the money transfer fee vs the cost of loan APR and how much it would cost you over the whole term.

    13k whilst yes a large sum, there are plenty of card providers who historically give large credit limits such as MBNA and Virgin. Depending on what your salary and credit history is like, you may only need 1 card.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
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