Loan to pay CC off

lgardner

Hi i currently owe around 3.5k on one credit card, and currently can pay £150 off a month. However i find myself using my credit card often during the month.

So i was wondering whether to get a loan to pay off my credit card and then cut it up so i will not use it.

It will mean i can pay my credit card off in around 2-3 years at this rate.

What does everyone think

runninglea

If you have to use your credit card each month then you will get a loan, keep the card and build that up again.

Look at all your income and outgoings - see how much if any you have left each month. A SOA would be a good start

mogchops

Been there, done that, got the loan, paid the card then ran up the card again. Dont do it!
You need to work out where your money is going. If you have to use the card every month, then you need to cut back somewhere. Start with a SOA.

Consumerist

mogchops wrote: »

Dont do it!

That would be my advice too.

Of itself, using the card regularly need not be an issuue provided you pay it off in full each month.

If your card balance is getting higher each month then you need to address the underlying reasons for that because you are probably living beyond your means.

[Deleted User]

lgardner wrote: »

Hi i currently owe around 3.5k on one credit card, and currently can pay £150 off a month. However i find myself using my credit card often during the month.

So i was wondering whether to get a loan to pay off my credit card and then cut it up so i will not use it.

It will mean i can pay my credit card off in around 2-3 years at this rate.

What does everyone think

Why not just cut your card up anyway? If you can't do it now, you can't do it with a loan.

Mr.Mulla

In my opinion, there is no need to take out a loan to pay up the card balance. And no need to cut the card as well because you can always use it for an extreme emergency. Just keep the card at home and don't take it with you so you won't get tempted to use it. It will only be difficult not having your card with you in the beginning but you will eventually get used to it. Then continue paying regularly and eventually your balance will all get paid up.

ironlady2022

You need to see where you are overspending if you keep running it up and if you are dependant on it. A loan is only a short term fix if you cannot survive without a credit card.

izools

Another option to consider would be to call the credit card company and ask them to close it - close it to a "Repayment Only" account.

You will get your statements in the normal fashion still, charged the same interest, and have the same minimum payments, but no new spending could then be added to the account.

You would also be immune from interest rate increases.

IMHO the most effective thing to do if you want to definitely stop yourself using the card month on month.