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Loan to pay off CC.

stripey
stripey Posts: 82 Forumite
Part of the Furniture Combo Breaker
in Loans
Hello,

I'm looking for some advice. I am trying to pay off my credit cards and only have one left to pay off but its a biggie!
I currently owe nearly £7000 on my Egg card and i'm paying £181 a month at 21.9% interest - I pay over £100 in interest alone!

Would it be a good move to get a loan from my bank to pay off the credit card? The loan i've looked at is 8.9% and the repayment is £165 per month.

I wish i could afford to pay more on the CC but at the moment i can't afford to.

Any advice gratefully received.

Thanks.

Comments

  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you can't afford to pay more, it is unlikely you will get a bank loan from your bank - if you can though - at least you have a guaranteed interest rate and will be paying it off faster - just don't be tempted to use your egg card and fill it up again.

    Good luck

    R.
    Smile :), it makes people wonder what you have been up to.
  • selecta_c
    selecta_c Posts: 220 Forumite
    Could you not get a 0% balance transfer card?
  • stripey
    stripey Posts: 82 Forumite
    Part of the Furniture Combo Breaker
    Thanks for your replies.

    Just thinking out loud here- in terms of my bank giving me a loan, i do keep my account in good order and am 'pre- approved' for borrowing for up to £25000!. Regarding 0% interest cards having looked into it the 0% only seems to last for around 3 months and i did try and do this a while ago and was refused.

    I'm thinking with a loan i will be able to pay off the loan in 5 years and will have a set amount to pay off and i never intend to have a CC again as i want to be debt free for my retirement.
  • selecta_c
    selecta_c Posts: 220 Forumite
    stripey wrote: »
    Thanks for your replies.

    Just thinking out loud here- in terms of my bank giving me a loan, i do keep my account in good order and am 'pre- approved' for borrowing for up to £25000!. Regarding 0% interest cards having looked into it the 0% only seems to last for around 3 months and i did try and do this a while ago and was refused.

    I'm thinking with a loan i will be able to pay off the loan in 5 years and will have a set amount to pay off and i never intend to have a CC again as i want to be debt free for my retirement.

    Halifax do a 9 months 0% balance transfer card and their checks are not mega stringent.
  • flutterbyuk25
    flutterbyuk25 Posts: 7,009 Forumite
    Virgin CC do up to 16months 0%

    x
    * Rainbow baby boy born 9th August 2016 *

    * Slimming World follower (I breastfeed so get 6 hex's!) *
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