Loan To Cut Credit Card Repayments

skint69

HI,
first post so hi all you clued up peeps and hi to the not so.
ok in a nutshell,i have 9k of credit card debt,my min monthly payments on all 4 add up to an average of £220 a month .i know i should pay more,but i am only working part time at the mo after illness so its all i can afford.

if i get a loan for the 9k my monthly payments will be cut to around £150.
seems a non brainer doesnt it?
thx in advnce
kate

tictax

How much a month do you earn ? This will be a huge factor in determining if you will get a loan.

Using a loan to clear your credit cards can work in some circumstances - eg when the interest paid will be lower and if you never spend on the credit cards again. However, have you looked into transferring your credit card balances onto a 0% card.

mrcow

Who is the loan with and what's the deal you've been offered? By the figures you've posted, this looks like a 6 year deal which is a long time, you'll lose all your flexibilty on repayment and will be paying over £2000 in interest.

If you do this, you have to cancel your cards and not get yourself in this sort of mess again.

skint69

thanks for your replys, the loan was quoted by abbey national-i will shop around and i take your point that your not in control of repayments on a loan.

all my cards are on 0%-i tend to be a card tart! so i know at least what my monthly payments will be.am trying not to spend on them at all,but now n then i need to for sm items.
thx for your advice