Flexible loans to pay credit card debt

scooterpig

I have credit card debt which is a pain in the neck. Some of it is at a hefty interest rate, some at 0%.

I am thinking of taking out a flexible loan to restructure it. My thinking behind this is that I'd only have to draw down the amount required, therefore I could clear out the interest-bearing debt straight away, and then only shift the interest-free debt once the 0% ends. Also, I know I'm going to get some sizeable chunks of money later in the year so I'd be able to make overpayments.

Has anyone done this - are there any pitfalls to watch out for? I know I could take a fixed rate loan but then I'd have to sit on some of it until the 0% runs out. I don't really want to tart as I've done it before and it didn't really work for me.

tomstickland

Why didn't tarting work?
Tarting 0%
Flex loan 6% ish
Credit cards 15% ish

scooterpig

It didn't work for me because I firstly forgot to transfer before the end, then I did make an application which disappeared into the ether, resulting on getting shunted onto an exorbitant rate.

Also, I was only making minimum payments by DD (cards didn't allow a fixed amount by DD, and it had to be DD payments to get the 0%), and time constraints and other high stress issues meant I didn't always get the time to make additional payments.

I think the flexible loan is a good compromise, as I'll be making fixed payments, with a specified end date, which can be shortened by making chunky extra payments later this year.