Pay Off loan or put on 0% card?

ant_bcfc

Hi

i Need your advice..... please help

i currently owe £3k on a card that i am about to swap for antoher 0% deal. i also owe £3.5k on a loan at 5.8% with 2 years remaining.
was wondering if it made sense to swap the loan over to the new 0% card at the same time?

any advice would be gratefully recieved

Ant

qazitory

You might struggle at the min getting a credit card with a higher limit? Also are there any cancellation fees with the loan?

ant_bcfc

didnt even consider that we might not be able to get a higher limit - is it really that tuff?

also, i "dont think" there is an early redemtion fee, certainly the £3.5k is the settlement figure anyway, so its what i owe them if i were to leave now.

Moggles_2

ant_bcfc wrote: »

Didn't even consider that we might not be able to get a higher limit. Is it really that tough?

What are the credit limits like on your other credit cards? That's normally a rough guide as to what you can expect

Moggles_2

Was wondering if it made sense to swap the loan over to the new 0% card at the same time?

Have you estimated how long it would take to pay off your borrowings?
If you will have savings to pay off your credit card balance before the 0% period expires, that's great.

The risk in paying off a loan this way is that you can't be sure of another 0% credit card offer with a sufficient credit limit when your current deal ends and the interest rate leaps to anything up to 34.9% APR variable. For all we know, 0% BT deals may not be around in 12 months time and BT fees could have jumped to 5% or even 6%.

Bear in mind that the reason cc providers can afford to lend you money at 0% for X months is because, as often as not, customers do not clear the debt and end up paying crippling interest when the promotion period ends. If 12-13 months isn't long enough to clear the loan, it may be safer to leave some of your borrowings at the fixed rate that you are currently paying

CLAPTON

ant_bcfc wrote: »

Hi

i Need your advice..... please help

i currently owe £3k on a card that i am about to swap for antoher 0% deal. i also owe £3.5k on a loan at 5.8% with 2 years remaining.
was wondering if it made sense to swap the loan over to the new 0% card at the same time?

any advice would be gratefully recieved

Ant

with a 3.5k loan at 5.8% over 2 years you will pay about 215 in interest

if you BT then presumably you pay 3% ? fee i.e about £105 and then BT again in a year with another fee and if you can get another deal then

hardly seems worth it