Should I take out a loan?

Carmex_Fan

To pay off my credit cards? Would the interest on a loan be less than a credit card provideR?

lukese

could you not transfer to a 0% card for x amount of months? i looked at a loan but got scared of by people on here! im still decideding

duff67

Carmex_Fan wrote: »

To pay off my credit cards? Would the interest on a loan be less than a credit card provideR?

Simple answer YES, if comparing normal rates.

Good suggestion re balance transferring to a c/card that provides 0% for a period aslong as you can make the min paymts.

Very generally high street lending rates most expensive to least :

Unauthorised Borrowing
Credit Cards
Overdrafts
Personal Loans
Mtge

~Beanie~

A loan will almost certainly be cheaper BUT you need to ensure that you cut up your cards and close the accounts.

There are many, many people on this site (me included) who have cleared cards with a loan, promptly ran the cards up again and are now paying off both .

JayZed

Carmex, while it's true that a loan will be cheaper than CCs, I would strongly second lukese's suggestion that you look at the option of a 0% CC balance transfer first. Even if there's a balance transfer fee of 2% or so this is still going to be your cheapest option by some way.

If you do this you should set up a direct debit to make the minimum payments every month, and set yourself a reminder to look for a new balance transfer option at least a month before the 0% deal expires.

Carmex_Fan

Thanks for the tips.

I have two credit cards, one I owe £3400 and the other £1600. The latter I can pay off each month, but the other I have had for years and it feels like paying the minimum is taking forever.
If I took out a loan I know I would cut them up and not rely on them.

Switching all of it to 0% is easier said then done, what offers do people know of that are out there?

jamesd

Virgin's 0% for 15 months, 2.98% fee charged in first bill then 25 a month minimum, may be the easiest to get, includes both balance transfers and purchases. See Best Balance Transfers.

fatbelly

How about a balance transfer to a 'life of balance' card - I've got some on a 3.9% deal from M&S - I just make the minimum payment each month and don't care how long it takes at that interest rate. That deal has gone but you'll see from

http://www.stoozing.com/lob.php

that Citibank have a 4.9% deal.

The stoozing site also has the latest info on 0% deals here

Carmex_Fan

Thanks! I am really going to look into one or the other.