Trying to lower credit card interest

banishblues

Hi.

I'm trying to lower the cost of my credit card debt, but when I go through the eligibility check all I get are the cards that have higher rate interest than the one I have. I have been called twice about a loan at way lower rates from my own bank, which is part of the group that issued my card. Should I look to doing that, as I only seem to be paying the interest every month and not reducing the debt.

Consumerist

banishblues wrote: »

I'm trying to lower the cost of my credit card debt, but when I go through the eligibility check all I get are the cards that have higher rate interest than the one I have. I have been called twice about a loan at way lower rates from my own bank, which is part of the group that issued my card. Should I look to doing that, as I only seem to be paying the interest every month and not reducing the debt.

You might want to consider a 0% balance-transfer card. Although the rate charged may be higher, you won't be paying any interest at all during the 0% period.

If you can't pay off the balance over the interest-free period you will need repeat the exercise at that time - but the aim would be for the outstanding balance to be lower by then.

thebritishbloke

We can't really advise you unless you give us a lot more details. How much debt do you have, what's your income, what's your repayment history like, any defaults/CCJ's etc.

Gentoo365

Are you trying to get rid of the debt?

..because it may be that a loan is the best way. If you are able to do so a 0% card is likely to involve lower interest (albeit you have to consider fees, and the unknown future of rates, offers etc).

..but with a loan you know the payment amount for the whole term, and you know the end date, when it is paid off.

So for some people it is the best option.

As mentioned above though, really it depends on your situation, what your ultimate aims are and how good you are at self control.