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Credit card or Loan?
jenna141230
Posts: 21 Forumite
in Credit cards
Hi all
I currently have the following debt on cards
Virgin Credit Card - £3474.10 (£3500 limit, 0% BT from December 2007 for 12 months) - Paying £35 per month
Debenhams Store card - £519.61 (£5000 limit) - Paying approx £15 Per month
Argos Card - £430 (£500 Limit) - Paying £12 per month
Studio Cards - £123.20 (£200 Limit) - Paying £30 per month
£1500 Over draft - Paying £18 per month interest (HSBC)
My current monthly outgoings are £110 and I am only paying min payments as that is all I can afford.
I cannot seem to get another credit card to transfer the balance but have been preliminary accepted for a loan of £5000 over 4 years for £120 per month on Yourpersonalloan.co.uk (as reccommended by MSE site) but just wondering if this is indeed the best thing to do. I know its 4 years but at least I know that after that time I will have paid everything off and just paying the minimum each month will take years.
Any thoughts?
I currently have the following debt on cards
Virgin Credit Card - £3474.10 (£3500 limit, 0% BT from December 2007 for 12 months) - Paying £35 per month
Debenhams Store card - £519.61 (£5000 limit) - Paying approx £15 Per month
Argos Card - £430 (£500 Limit) - Paying £12 per month
Studio Cards - £123.20 (£200 Limit) - Paying £30 per month
£1500 Over draft - Paying £18 per month interest (HSBC)
My current monthly outgoings are £110 and I am only paying min payments as that is all I can afford.
I cannot seem to get another credit card to transfer the balance but have been preliminary accepted for a loan of £5000 over 4 years for £120 per month on Yourpersonalloan.co.uk (as reccommended by MSE site) but just wondering if this is indeed the best thing to do. I know its 4 years but at least I know that after that time I will have paid everything off and just paying the minimum each month will take years.
Any thoughts?
0
Comments
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generally consolidation loans are a bad idea. Snowballing is often quicker and cheaper. It's all too easy to go out and spend again, meaning you'll have a large loan and new debt as well. I'm glad as hell I didn't consolidate. Try and address why you got into debt in the first place (usually spending more than you earn), try and decrease your outgoings, increase your incomings and you'll soon find that consolidation is a bad idea when you see how much you can pay off and when your DFD is.
It might be worth posting in the DFW board.
Also, how come your Virgin CC is up to 3474.10 if you've had 0% since last december and your paying £35? Sureley you should've got more of a chunk payed off? You haven't spent on it have you?Official DFW Nerd Club - Member no. 784 - Proud to be dealing with my debts0 -
Yes I have spent on it stupidly, a lot more than I transferred as it was christmas and there was 3 months 0% on purchases something like that.
What is snowballing and DFW?0 -
jenna141230 wrote: »What is snowballing and DFW?
Snowballing is paying of the most expensive debt first - put as much as you can to the debt with the highest APR, the rest just pay the minimum.
DFW is the Debt Free Wanabee Board.0
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