Good idea?

makemerich12

Went to the bank today for a review of my accounts spending etc etc...Got told for my age job etc i'm fairly good with money compared to others in my age bracket :j.

One problem i have is a credit card that i wish i never ever had and thats the point of this thread , i owe around 700 at 23.9 apr normally making just above the minimum payment each month. I have been advised to take a loan out for a grand at 17.9 apr to clear the card asap with the spare going on my old car finance clearing both by may/June ! While also getting a isa at 1.70 to help me get more from my saving.

Ilona

Did you make an appointment with the bank to go for a review, or did they call you in to sell you something?
Ilona

makemerich12

Nah i went into put money in my current account and the lady said i haven't had my account reviewed for 3 years but its not a necessary if i don't want to

jonesMUFCforever

Over how long a period is the loan over - will you spend again on the card?

makemerich12

12 months at £90 and no never

jonesMUFCforever

makemerich12 wrote: »

12 months at £90 and no never

Might work out cheaper if you get a 0% card and do a balance transfer.

Celyn

jonesMUFCforever wrote: »

Might work out cheaper if you get a 0% card and do a balance transfer.

That is something worth looking into, makemerich12. The bank's idea *might* be okay too, but remember their priority is making money for the bank, even if they do it with helpful-sounding people and smiling faces.

Mirno

What are the overpayment charges on the loan?
I'm assuming you're planning on paying the extra £300 off immediately (if not it's better to pay the £90 off the credit card directly - it'll take 9 months rather than a year).

The loan (assuming a "standard" 2 months interest sacrificed on the over payments, and overpaying the full £300 spare) will also take 9 months - but leave you slightly better off. This is assuming you can't make any other over-payments during the 9 months - in which case it's likely to swing favour back to the credit card.

Mirno

Wilkins

makemerich12 wrote: »

Nah i went into put money in my current account and the lady said i haven't had my account reviewed for 3 years but its not a necessary if i don't want to

"Have you had your review?" The most chilling words a bank employee can utter.


Just pay off the card.

BugsyBrowne

If you're that good with your money either pay the loan off ASAP or sling £100 at it every month and if will soon clear.

Don't bother getting a loan to pay off such a tiny debt.

National_Debtline

Hi there,

It's also a much better idea to use all spare money to clear debt - rather than put some in to savings. The reason being is that return you get on savings would be far less than the interest charged to you on your borrowing. Once the borrowing has been cleared you will then have more money to save.

Hope this makes sense.

Best wishes,

David @ NDL