Is this loan any good?

redballoon_2

from HSBC
a 3 month holiday (no payments required for the first three months)

I need 6200 to pay credit card. can't be doing with moving it again and again...been there done it, what a mess... anyway

6200 would be 14.9% EEK or 7000 at 6.9% (the offer)

the offer : Repaying over 3 years 248.08 per month which i have worked out is affordable. total repayment 8930.88, so costing 1930.88

i have applied for a post office credit card which is doing 0% for nine months which is good but balance of 1000.00 to start isn't so good.

any advice? i am considering it so i am actually paying it off rather than paying drips and draps on the credit card which is hardly touching the debt.

i am drawn to the three months holiday, which is what i need to sort myself out.

last month was a 500.00 overspend on our budget. i now, stupid me. we should have about 800.00 per month left over once all the bills have been paid, inc food and petrol. (all essentials but none in savings)


we have both made a pact on no spending on non essentials from now on.

thanks in advance

tomstickland

3 x 12 x £248.08 = £8930.88

So you're paying back £8930.88 on a loan of £6,200. ie: £2730 in interest payments.

Degeneratemoo

Sounds a bit poo to me.

redballoon_2

no, it would be 8930.88 repayment on a 7000 loan.

(7000 at 6.9% or 6200 on 14.9%)

sorry if my post was a bit confusing.

its cheaper to borrow 7000 than 6200

thanks

Locana

Why don't your just put the £248 towards the credit card repayments? If you get a loan to cover this, you will respend on the credit card and find yourself deeper in debt. If you have £800 left over monthly, why dont you pay more? You are better of not getting into more debt to pay off debt....

redballoon_2

Yes thanks Locana, we have now decided to do just this,. it was the three month break we where really after, but we have decided to pay the minimum or a bit more till we have things more sorted.

Hebejebe_3

I know you are sick of moving money about but why don't you transfer to a life of balance card? This works out at about 4.9%, have a look at the credit card section of the site. And 3 months off paying doesn't mean 3 months off from being charged interest!!