My Best Option

tshirtsuntan

Hi, i have debt that im struggling to pay.Its not an awful lot but enough to get stressed over.
My question is would it be a good idea to pay debts off with a credit card or go for a loan.I have bad credit history so my options for loans is limited the ones i have seen offer an APR of around 53% my credit card is 27% for cash and 19% for card purchases.i have debts of around £2000 and i would like to put them into one simple payment.some of that debt is an overdraft so it makes it hard to pay of as every week my salary gets swallowed up evry time it gets paid into my account.As you can see credit is availible to me via credit cards but i dont know the best way to go the APR i mention above tells me its better to borrow against the credit card.any advice would be so appreciated.I dont earn that much so that also hinders my options.

DVardysShadow

You cannot really pay debt off with a credit card or a loan - you need money to do that. Otherwise, you are simply moving a debt. 'One simple payment' is a bit of a delusion - particularly if you get a loan - this will put you on a treadmill of having to meet a rigid payment schedule.

You should try to do a Statement of Affairs http://www.makesenseofcards.co.uk/soacalc.html and post a copy here, then people will come up with ways you can save money, strategies for dealing with your debts and a view as to whether you should consider more serious measures like a Debt Management Plan etc.

bargainbetty

If the loan offers 53% interest, run. Don't stop to think about it, just run.

Look at what you earn versus what you spend. Either earn more or spend less and throw the spare cash at the card (which you should cut up immediately). You will pay off the debt that way, rather than borrowing the amount of the debt (including interest on what you have already spent) and then paying 50% back on top of that.

Get your SOA up and the good people here will help.

Good luck x

MyLastFiver

Aye - taking out sub-prime credit is the last thing you should be doing. Post your SOA and we'll be able to advise on options you may not have thought of.