Loans Help please

misscharlie

I want to repay my credit cards debt off, but have no idea whats the best way to go about it. I've read a few of the articles on here and got a loan rate from moneysupermarket for Zopa 7.9 with 9/10 likeness or the sllightly higher with ratesetter.

I owe 8k to halifax one card with a rate of 23.9%
And 4k with monthly interst rate of 1.3% with tesco bank.

I havent checked my credit file, but havent missed any payments. I am a home owner.

I'm looking to make a repayment of 750 monthly.

Thanks x

Rafter

All depends how much you are earning as to whether you can borrow enough to pay off your cards. (lenders will view this as additional borrowing as they have no guarantee you will pay off your credit cards or stop spending on them).

The tesco 1.3% is the equivalent of 16.7% APR so the priority is getting the Halifax card paid off to reduce the £144 in interest you are paying to them each month.

If you can seriously afford £750 in payments each month and can get the Zopa loan at 7.9% then you should be able to pay off the loan in less than 18 months.

Although it might be a bit easier to track what is going on with a single loan, you might be able to save even more by going for a 0% credit card balance transfer deal.

If Halifax have recently increased the interest rate on your card, it may also be worth contacting them and rejecting the increase asking that your existing balance is repaid at the old rate.

Good luck

R.

blacksta

I would be careful not to get another loan. consoldating will mean a long term in paying off the loan and imagine the interest you will be paying for 3 or 5 year loan.

The total interest on 12k loan over 5 years and apr of 8% is an extra 2.5k , you might be better off with the snowball technique - where you pay the mininmum payment on the cards and throw the extra £750 at the card with highest apr.

If you can get an interest free Credit card - that would be better than paying more interest.

I like the flexibility you get with a credit Card - Means i can pay more without any limitations.