Loan v cc, Which is cheapest/best

Happy_Bunny_6

I have £5,414 debt on a m&s cc with a low life of balance 3.9%

The payment for that is currently £162 pm

I also pay £10 extra every week

I am in the process of transferring £2,500 from another card to the m&s cc


My question is

Is it better/cheaper to leave the debt as it is or try and change it to a loan.

I am a little confused by how the interest rate works out.

iwanttosave_2

Sorry bunny, I have reported the above user and will be delted soon

jessicamb

Happy_Bunny wrote:

I have £5,414 debt on a m&s cc with a low life of balance 3.9%

The payment for that is currently £162 pm

I also pay £10 extra every week

I am in the process of transferring £2,500 from another card to the m&s cc


My question is

Is it better/cheaper to leave the debt as it is or try and change it to a loan.

I am a little confused by how the interest rate works out.

You can play around with a snowballing template - try www.whatsthecost.co.uk for a link, but I think 3.9% is a fantastic rate . I'm not up on the best rates but I expect that they are around 6%

Happy_Bunny_6

jessicamb wrote:

You can play around with a snowballing template - try www.whatsthecost.co.uk for a link, but I think 3.9% is a fantastic rate . I'm not up on the best rates but I expect that they are around 6%

Thanks, I'll try that.

I wasn't sure if it was that straightforward, comparing interest rates.
I've learnt to look for a catch since i've been on this site LOL

jessicamb

Happy_Bunny wrote:

Thanks, I'll try that.

I wasn't sure if it was that straightforward, comparing interest rates.
I've learnt to look for a catch since i've been on this site LOL

I think that the rates to compare are APRs where given a multitude - you can normally get a feel for what rates to expect hanging around on MSE though.

roswell

The more you can get at 3.9% the better. I dont think you will find a loan anywhere near that rate. This is life of balance as well i think so your onto a good thing last thing you wanty to do is move it off there, Just make sure you are sill the periode that allows you to transfer fee`s free at 3.9% or there will be some debt at the low rate and other debt at a higher rate, you will need to pay the low rate dabrt pff before the high rate and thsi can cause you much bigger interest charges.

fatbelly

As long as you can afford the 3% minimum monthly repayment (which clearly you can), the M&S deal is unbeatable at present.

tyllwyd

You can compare the effect of different interest rates by putting in the figures here http://www.fsa.gov.uk/consumer/04_CREDIT_DEBT/loan_calculator.html