Advice please..

solitude6

Sorry for the post but l'm after some impartial advice.

l have a payday loan due next week for £670 (£500 loan plus interest) but cant pay it off in time due to starting a new job after being out of work for a month.

l have a credit card l havent used so lm thinking of the following options-

take out £450 on my credit card to pay off the loan, yes the interest is high and charges etc will be a lot but it means the payday loans are clear.l can pay £90-100 a month to try and clear the card asap.

Defer the Loans and try to clear them but due to outstanding rent/bills etc it will be maybe 2-3 months before l can clear it off.

will my 30% apr credit card be less interest wise than defering the payday loans?

any advice would be great. the thought of having to withdraw so much on a credit card is terrifying but payday loans companies can be much worse.

thanks

[Deleted User]

Depends on what the PDL is costing you. But I would think the card would be cheaper.

solitude6

payday loan is £160 monthly interest,

credit card is 35% apr which works out at around 3.5% a month so from £450 credit card debt l will be paying around £20-30 a month interest (l think)

best way from out of a no win situation l think?

solitude6

does anyone know if its possible to do a balance transfer to my current account to save on ATM fees or will it still count as fees?
thanks

[Deleted User]

Only if it offers a money transfer option, such as MBNA. You'd still have the BT fee though which would be similar to the cash fee.

grumbler

A transfer (not 'balance transfer') to your account, if possible, will cost the same as a withdrawal.

When taking a loan at 32% monthly interest why have you not used your credit card instead that charges the same for a year?!