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Transfer loan onto Card or Not

xqb38i
xqb38i Posts: 9 Forumite
I currently have a loan with Cahoot for approximately 6,000 at a fixed rate with affordable payments. Would this be best being transferred to a credit card to pay off at cheaper interest rate or left alone as it is??
:confused:
I will be debt free
I will be debt free

£2 savings coin club £14
from little acorns big oaks grow

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Never compare debts by monthly payments! Compare real cost of debts that depends mainly on APRs. And nobody can give you an advice based on information you provided because it is not clear whether Cahoot will charge you for early settlement and how much. See Martin's article: Cut the cost of existing loans?

    Switching your debt to some low Life Of Balance rate credit card with 4.95%-6.9% APR (although this is not very simple to do) can result in higher initial monthly payments (2%-3%) but the total cost could be much lower.
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