Taking out loan to pay off credit card?

Molly15`

Hello

I am hoping someone here can give me some advice. I currently have a Barclaycard Credit card owing £9,000 for the last three years. I try to pay more than the minimum monthly charges so usually pay 300-500 a month towards paying it off. My bank got in contact with me last week offering me a loan at 4.9% to pay off my credit card. the interest rate on my credit card is 24.9%. They have asked me to come in for a meeting on Thursday. Is it a good idea to take out this loan to pay off my credit card debt. Will this affect future borrowing such as taking out a mortgage next year?

I would really appreciate any advice anyone has?

Thanks
Molly

PeacefulWaters

It's only a good idea if you don't build up the card debt again.

CLAPTON

Molly15` wrote: »

Hello

I am hoping someone here can give me some advice. I currently have a Barclaycard Credit card owing £9,000 for the last three years. I try to pay more than the minimum monthly charges so usually pay 300-500 a month towards paying it off. My bank got in contact with me last week offering me a loan at 4.9% to pay off my credit card. the interest rate on my credit card is 24.9%. They have asked me to come in for a meeting on Thursday. Is it a good idea to take out this loan to pay off my credit card debt. Will this affect future borrowing such as taking out a mortgage next year?

I would really appreciate any advice anyone has?

Thanks
Molly

debt will affect getting a mortgage

if you have savings (for a deposit?) why not use this to pay off the CC

otherwise it is sensible to reduce the rate of interest on any debt you carry.

DCFC79

If you do get a loan maybe cut the card up so your not tempted to use it again.

jonesMUFCforever

Mortgage application will ask if you have any other debts - it does not matter whether it is a credit card or personal loan - it will effect the amount you will be able to borrow - so the quicker you get rid of this debt the better it will be for you.

IMO this is a no brainer especially if you can make extra repayments from time to time - exchanging 24% debt to 5% is a good move BUT cut up the card so no more new spending on it.

Foxy-Stoat_3

Take out loan and clear the card, write to barclaycard and cancel card when you do.

bsms1147

Are you sure you are living within your means?