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Best Loan for Short Term Low Debt
debt_collector
Posts: 63 Forumite
in Loans
Hi everyone. I have a credit card debt of £4000. I do overpay each month, however, I am interested in taking out a loan for the whole amount and paying it off in 18months. I currently pay £200 p/m. I am willing to take out a loan and pay up to £250p/m in order to pay it off in 18mts or less. Any suggestions or should I stick to my card???
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Comments
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Another loan = another credit check. Is this a good idea in whatever financial situation you're in ? If it is and you can find a loan then go for it, but rates tend to be high on small amounts (ie under 5K or so). Personally (and depending on the CC interest rate) I think I would simply overpay the CC and get it cleared asap.0
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For such small amount it is worth considering switching the debt to some card with low Life Of Balance interest rate (that can be as low as 4.9%).
See:
Cut Price Plastic Personal Loan article (Long term cheap debt)
The Best Balance Transfers: cut the cost of existing credit card debts > BEST BUYS: Easy Route, a one off move for permanently low rates
http://www.stoozing.com/0fees.htm (the bottom part of the list)
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