Loan to clear two credit cards

Spoff

Change of circumstances means I have two credit cards totalling £5300 (£3300 of that is on a 0% card until early 2013).

I have reduced my monthly outgoings as far as I can and then a little bit more and sold a few bits and bobs.

I think I need to get a loan to cover the above money, IF Zopla accepted me over 60 months it would be £100 a month repayments and they would free up enough money for me to cope without the need of credit cards/over draft.

Is Zopla trustable? I could get a bank loan for the above repayments would be slightly more totalling about an exta £1K over the life of the loan.

Any pointers greatly received as until my marriage ended last year I had little to do with the money of the house so not much experience to go on.

Tixy

Zopa is used by quite a lot of people on here - its a propery company not a scam.

But do you really want to move 0% debt to a loan with interest?

How much are your currently paying towards your debts each month? Is that the max you can afford? or can you only afford £100 a month?

Spoff

There is no way I will clear the debt before the 0% deal runs out - The intention was I would but I have not paid enough attention to it and over spend recently.

I am paying the minimum off the 0% card as my other card ran up again quickly. I'm £100 a month better off from April as I stop paying for my ex's car loan (never should have been but that is another story..)

My thinking is if I clear the balance of both cards (£5300) with a loan that will be about £100 a month it will free up a little bit each month to be able to take my son out occassionally and save each month so when car insuance what ever hits I have a bit of saving to soften the blow.

I know I have not paid enough attention to my outgoings, and have been unbelievely stupid not to do so. I think I have just about woken up in time to get it sorted and prevent even bigger problems.

BackOnTrack

Spoff wrote: »

I am paying the minimum off the 0% card as my other card ran up again quickly.

Well thats the crux of it right there. If you clear these two cards with a loan are you just going to run them up again? When the car insurance or that hits are you going stick it on the credit card because you have spent more on other things than you perhaps intended to.

If you really have the discipline to get rid off or not spend on your credit cards then yeah a loan is a good plan but based on what you have written it sounds like even though you have good intentions you might just be digging a deeper hole for yourself.