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Loan to pay off credit card?????
mrs_rooby
Posts: 1 Newbie
in Credit cards
Could anyone advise me please. Is it a good idea to get a fixed rate loan to pay off credit cards? It would cost me about the same a month but the loan is for 4 yrs and i have 3 seperate c/c's in total and been paying them for 3 yrs and feel i'm not getting anywhere. Thanks:o
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Comments
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Definitely a good idea if you can (a) get the loan and (b) you have the discipline to cut up the cards after they are paid off. You will generally pay a much lower interest rate on a bank loan.0
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Arthritic_Toe wrote: »Definitely a good idea if you can (a) get the loan and (b) you have the discipline to cut up the cards after they are paid off. You will generally pay a much lower interest rate on a bank loan.
Rate tarting on 0% cards is the cheapest way to do it.
A loan will tie you into the debt for a number of years. The interest rate is only one part of the equation. You need to consider the total amount you repay and that a loan is less "flexible" on overpaying - which means that any gains you can make from applying other money saving tricks can't be used to reduce your debts.
A loan wouldn't be my first choice."A child of five could understand this. Fetch me a child of five." - Groucho Marx0
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