Credit Card Doom!

Rich_H_4

I have 3 credit cards 2 MBNA and 1 lloyds TSB, tottalling 10.5K, am i best off applying for a loan to pay off one at a time or to call the companies and try to lose one or two of them that way?

thumshie

Without knowing your credit report/score, no-one can suggest a best answer.

I notice your other post was about reducing your payment, the real question is:
Do you want to reduce monthly payments or repay the debt paying the least interest..

Also what interest are your current cards charging? if its 3.9% LOBs you probably won't find better. Are you only paying the minimum, what available credit is on the existing cards to contemplate a credit card shuffle using the existing cards, are you able to pay more than the minimum on any card?

[Deleted User]

It depends, if this is a big debt compared to your salary and disposable income then id look for life of balance cards. If your on 40K with little outgoings then get it onto a 0% for 12months.

If you cant get any more cards then you must snowball, pay every cards minimum payment and overpay the one with the highest APR at teh time. You can make the usual MSE main site cut backs and take a real look at other savings you can make do you NEED it? if you have a 10K car would trading it for a 1K diesel be better?

Simple really.