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Credit card or Loan?
backtoback_2
Posts: 4 Newbie
We have been paying off our debts over the last two years and want to sort ourselves out. I have 2 options and wondered if anyone could help me decide which is the best.
We have a loan with £9,700 left @ £466 a month (til Feb 2011) and a credit card with £4,900 (0% for another 12 months).
I have to admit that we are pretty rubbish when it comes to paying off the credit card in lumps and average at about £500 a month. Then we also save £400 a month extra too.
SO the question is, should we carry on as normal leaving the CC paid off in around 10 months and the loan in 2011...total on debts/savings per month £1400
OR
Put it all into a loan, £713 (ending at the same time) a month leaving us with more disposable cash each month for savings (approx £600 minimum a month).
Does it make sense to move it to one place?
We have a loan with £9,700 left @ £466 a month (til Feb 2011) and a credit card with £4,900 (0% for another 12 months).
I have to admit that we are pretty rubbish when it comes to paying off the credit card in lumps and average at about £500 a month. Then we also save £400 a month extra too.
SO the question is, should we carry on as normal leaving the CC paid off in around 10 months and the loan in 2011...total on debts/savings per month £1400
OR
Put it all into a loan, £713 (ending at the same time) a month leaving us with more disposable cash each month for savings (approx £600 minimum a month).
Does it make sense to move it to one place?
0
Comments
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Not really - its just consolidation. You will get no interest on your savings and you may even struggle to get a loan in the current climate.....
Take option 1Quality is doing something right when no one is looking - Henry Ford
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Thanks, the loan would be a top up from the same company.0
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You would incur more interest by adding a top up to the loan...much better to pay off the credit card and then try to overpay the loan..Quality is doing something right when no one is looking - Henry Ford
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DONT consolidate them now......you'll be paying interest on the CC balance, which is currently interest-free!
:D stay wonky :D
....one-way ticket to Portugal booked !0 -
True true! I guess I just have to be more strict and sensible with the CC - we dont spend on it anyways.....and in 10 months we would then only have a loan to pay off and could save to pay it all off asap.
Thanks for making me see sense!0 -
I agree with the other posters, take option 10
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Assume you're only making min payments on the CC as it's 0% and saving the rest of what you can afford towards it?
I know savings rates are mingy at the mo but better in your pocket than theirs! We're sticking an amount every month into the Alliance and Leicester e-saver so when the 0% comes up we can at least cut the balance a bit before BTing if we need to.MFW Challenge member no. 96 - on hold! :rolleyes:
Girl Cub due 14th September0
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