Loan to cover credit cards ??

Spendi

I have read a lot of posts and a few people seem to have taken out a loan to cover the credit cards, at a lower APR, as it stands i have the following debt

CC No 1 £1610.02 APR 19.9 %

CC No 2 £3421.29 APR 22%

Bank Loan £7289 Outstanding, repayment £236.10 per month ends Apr 09

Two small store cards totalling £500

Total Debt on cards £5531.31

I currently pay £320 a month towards the credit card bills making my monthly payment £556

Would i be better trying to get the cards put on a loan over the same term (apr 09 ) and paying that instead, i got a good rate on my loan when i took it out of 6.4%

lynzpower

I wouldnt say 6.4 is particulaly cheap for a loan . theres muhc cheaper out there

Can I ask what you got your other loan for

And big welcome :wave:

leebec

You might be better looking into the possibility of getting a credit card that offers a low APR for the lifetime of the balance. Not only will this be a lower interest rate than a loan, the flexibility of it means you can pay more off it when you can afford it (e.g flogging stuff on ebay).
I think there's a card which does 3.9% APR for the balance life at the moment. You mustn't spend anything on it though.
You could always apply and see what credit limit they give you and then make your decision from there.

Spendi

Lynzpower The loan was for my car, whats a good rate for a loan then ? i thought my 6.4 was good

Leebec, i did think of that but im wary of applying for another card as ive already got 4, if you include the store cards, and i didnt think i would get one with a high enough limit to pay them both off..

duncans-mum_2

Hi there, and welcome. If you decide to go down the loan route or life of balance card then dont forget to make sure you don't run up your existing credit cards again. Cut them up.

Spendi

Hi duncans-mum

I dont use my credit cards at all now, i pay for everything with my debit card - on the few occasions i do need to use a credit card for something i transfer the money straight away to cover it, so im not too worried about spending on them again !