Credit Card V Loan - Opinions Please

elfy1_2

Hello All, Advice needed - I've just added up my two outstanding credit cards and owe £6000 (that seems alot in black and white!). I've been looking at loans to consolidate the debt, however am wondering would a % interest credit card be better (my bank currently has one on offer for 6 months) - after that I would either switch to another card or get a loan - I know there will be no way I can pay the balance off in 6 months..........Any suggestions, advice appreciated, not sure which is the best way to go - Thanks in advance

Rafter

elfy,

Paying no interest is better than paying interest on a loan. You need to watch out for balance transfer fees etc, but you should be able to cycle £6000 between 0% cards if your credit limit and income are ok.

You then need to decide whether you want to start repaying the debt. And make sure you cut up the old cards too and aren't tempted to start filling them up again.

If you can afford to repay some, don't pay off the 0% cards but put the money in a savings account. Hopefully in a couple of years time you might have £6,000 in savings and paid no interest on your credit cards and then decide to pay the whole lot off or just keep saving!

Good luck.

R.