Loan to pay off credit card?????

mrs_rooby

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

Arthritic_Toe

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.

CannyJock

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.