Should I switch to interest only to clear credit cards?

blitzboy

Hi all,

My 0% credit card is coming to an end soon and I have been rejected for a new one so cannot transfer the balance of around 5k onto a new deal.

As i'm not too keen on paying the high interest rate that will start on my card I am looking at other ways to clear it asap.

One thing i thought of is switching from capital repayment to interest only on my mortgage for a few months to free up some extra cash to clear the card. However I am unsure if this will have a negative effect on my credit rating which i dont want to damage as I will also be looking to remortgage this time next year.

I have spoken to my mortgage provider and they said that they will only switch me to interest only for a maximum of 6 months (which is fine) and will only do so if I say that I am 'struggling to repay'. Technically I am not struggling, i'm just trying to avoid the high interest so I dont want to say anything that will go against me in the future, especially with the remortgage.

Any advice would be appreciated.

Thanks

blitzboy

Anyone?....

DannyboyMidlands

Just leave the mortgage as it is and pay off the damn card. Even if you could transfer the balance to a new card, you'd still be paying a couple of percent handling fee.

It was always a risk that you may one day be unable to refinance this debt.