Cred card balance transfer or remortgage?

ericbanner

Hello everyone

I am seeking some independent advice on my current situation, I am 31 years old, I own my house outright with no mortgage. The house is valued at £225,000.

I have £10,000 pound on a credit card I would desperately like to pay off, my question is should I transfer the balance and attempt to pay the debt off or re mortgage my house for the £10,000 and pay it off that way. I have read various forums on line surrounding these methods but none really matched my situation as in already having no mortgage.

Any advice is very welcome.

Thanks in advance

grumbler

This depends on many factors:

- your credit history and income, i.e. how easy you can get 0% card(s) with sufficient limit(s);
- how long it will take to pay the debt off.

Mortgage is likely to be more expensive, especially a short-term one and after all the fees.

0% credit card is a cheaper and a simpler option if you can get it.

ericbanner

Hi

Monthly incomings are £4700 with total monthly outgoings around the £2500 mark. I have applied for balance transfer cards but none seem to cover the full amount I need, should I split them over 2 cards if necessary?

I would prefer not to go down the re-mortgage route so balance transfer seems to be the way to go.

Thanks again for any advice you may be able to offer.

Regards

HappyMJ

ericbanner wrote: »

Hi

Monthly incomings are £4700 with total monthly outgoings around the £2500 mark. I have applied for balance transfer cards but none seem to cover the full amount I need, should I split them over 2 cards if necessary?

I would prefer not to go down the re-mortgage route so balance transfer seems to be the way to go.

Thanks again for any advice you may be able to offer.

Regards

Why refinance it at all?

If you paid it off using your next monthly salary payment of £4,700 then during the month use the card as little as possible buying only the essentials that you NEED totalling less than £2,500. Then next month do the same. In 5 months the debt will be fully paid off. The interest even if charged at 24.9% will be well under £1,000. Switching cards will hurt your credit rating which may affect you in the future should you wish to take out finance to purchase something really big such as a car.

If you were to get a £10,000 personal loan at 4% interest over 12 months it could cost you £850 per month which fits easily within your budget.

Due to the short time period to get it fully paid I'd recommend you post a SOA to the DFW board.