Best and cheapest way to borrow 22k?

rm09

7 years ago i purchased a property and took out a loan alongside the mortgage. Im now selling the property and will still be left with 22k loan.... (unfortunately not making any profit) Because i will no longer have a mortgage, the interest is going to jump from 5% to 12% so, i need to either take out a loan or spread the costs over a few different credit cards. I currently have about 8k outstanding over 2 credit cards which i pay and am sure i have about 3/4 other credit cards which i dont use that have between 5-10k on each...... I could afford to pay about £300 a month back. Whats my best option?

Tixy

Hi

12% APR may be difficult to beat in your position. You say you can afford to pay £300 a month, will the current company accept that level of payment?

Is the £300 likely to be the amount you can afford long term? or do you expect/hope to be able to increase it in the future?

At £300 a month and 12% APR its going to take around 11 years to repay.

There are a few issues with the idea of credit cards.
-The £300 may well not cover the minimum payments on £22k debt on credit cards (e.g. Barclays minimum payment is 2.5%).
-Also you have got to get the debt on to the cards in the first place (so you will likely need to have sufficient cards/limit that allow money transfers). -
Even if you can get the debt on to the cards and at get some of it on 0% deals those deals won't last long enough for you to make much debt in the debt and if you are unable to make subsequent transfers to new 0% deals you will either be stuck with the debt on a much higher APR than your current loan, or may need try to take out a loan at that point and the APR could well be higher than the 12% you have now.

Regarding getting another new loan for £22k with a different provider - you may well struggle to get accepted for such a loan, particularly one at a rate lower than 12%. And even if you could as the repayment period would be shorter then again the repayments would again be likely more than £300 a month.