credit card or loan?

mrkester

hi

my wife & i are wishing to try for a baby, which will unfortunately entail us forking out a load of money, at least £4k.

therefore, i would love some advice as whether to go for a credit card or loan for this?

household income is <£10k

all help gratefully appreciated

thanks

Obukit

Is the £4k for fertility treatment or in anticipation of buying items when the baby is born?

Do you have a good credit history and any outstanding debts?

To be honest, without being rude, £4k is a lot of money to borrow if your household income is less than £10k (about half of your net income). Being in debt even before a baby is born won't be the best start for your new family especially as the debt is likely to be expensive with your income. Perhaps you could look at taking an evening or weekend job and saving up rather than saddling yourself with such a commitment?

However, if you really want to borrow, then read Martin's articles about getting Cheap Loans and Cheap Credit Card Loans and work out which will offer you the lowest APR (annual cost of the debt) and take that option.

DipStick

mrkester wrote: »

hi

my wife & i are wishing to try for a baby, which will unfortunately entail us forking out a load of money, at least £4k.

If you are going to need £4K now how much more will you need over the next few years. It sounds as though you could be in danger of starting on a slippery slope into deep debt.

If you borrow £4K how much will the repayments be each month? Start putting that amount aside each month now. If you can't afford it, you can't afford to borrow £4K.

Delaying the baby and getting a part time job to save up the £4K sounds like tough-love advice, but believe me it will be less painful than sliding into the debt pit.