Loan to pay off credit cards??? Good Idea?

snoopin

Hi there

Im sure this has been asked many times but, im in a dilema.

I currently have 3 Credit Cards and a Loan

• Nationwide CC - Balance £1275.82 - 30 per month
• Virgin CC - Balance £450 - 25 per month
• Mint CC - Balance £7887 - 200 per month
• Cahoot Loan - Balance £2146 (10 months remaining) - 244 per month

Total for this lot is currently £11758.82

The total monthly payments for this come to £499

My question is would i be better of getting a loan for £11500 over 5 years @ £232 per month and get rid of all the credits cards etc for good and save myself £267 per month?

Im unsure what to do, the cards have all finished there interest free period and i cant balance transfer for a good deal as i have transfered before?

Any thoughts much appreciated

Many thanks

digitalphase

If you can get a loan and repay it for that amount over that amount of time, then yes it seems like it's the best thing for you. Have you applied for that loan you have got the figures from? Is that from your bank?

snoopin

Hi thanks for the reply

No this is just a rough figure searching online, i have good credit so the loan shouldnt be an issue

Many thanks

Moggles_2

The cards have all finished their interest-free period and I can't balance transfer for a good deal as I have transferred before.

The fact that you've transferred balances to three credit cards previously has no bearing on your ability to get new credit elsewhere.

13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
Minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp

SwissLe

Unless your credit score is blindingly good I wouldn't think you would qualify for a £12000 credit limit from a new balance transfer card. You may get this from two cards though, I don't think Halifax do SBT to transfer in the loan.

I am not a big fan of consolidation loans as they do tend to encourage you to get into more debt using the cards as you tend to forget about the loan going out each month. If you go down this route then ensure you cut up and cancel the majority of cards.

Moggles_2

SwissLe wrote: »

I don't think Halifax do SBT to transfer in the loan.

That's right, but the OP is not considering transfer of their existing loan to credit cards.

Snoopin, once your Virgin and Mint balances are paid off, courtesy of Halifax (or another 0% BT card), you'll be in a stronger position to negotiate a rate reduction.

It's also worth remembering that Mint and Virgin have a reputation for regular, follow-on offers, which you can use to your advantage once your balance is paid off in full. Virgin, and occasionally Mint, will even waive BT fees sometimes, if you're prepared to negotiate over the phone. I've had offers as good or better than the introductory deals now and again