Credit Card Advice

lukewallace87

Hey all,

Looking for some advice with regards to credit cards.

I'm looking to pay off some debts and in total it comes to around £10k

The reason for this is that my direct debits add up to around £500 a month and it's a little high, i can make the payments fine but seem to struggle for money at the end of the month.

Do you think it's worth while paying this debt off with a credit card (if so which one?) and just pay however much a month?

Any help is much appreciated.

Regards,
Luke

Tixy

What interest rates are you paying on your debts at the moment?

What types of debts are they (other credit cards / loans / overdraft etc)?

[Deleted User]

It depends on the rates you're paying and how long it will take to pay off.

lukewallace87

They are all personal loans

1) I'm currently paying off a loan for a car which I purchased almost 3 years ago and still owe £7k. (£281 a month) still got 2 years left.

2) Tesco loan which is £127 a month but ends in July this year.

3) Hitachi loan which I got for training courses and that's £80 which still has 2 years to run.

I'm unsure on the rates but I know the rate on my car loan was stupid. (even worse... I wrote the car off after 8 months!)

Candyapple

Have a read of this thread:
https://forums.moneysavingexpert.com/discussion/5169373

Tixy

You need to find out the interest rates to see if the idea is worth considering.

If it is then most credit cards cannot be used to pay off loans, you cannot use a normal balance transfer card, so you'd need to look at the few providers who offer money transfers, such as MBNA. The other option of cash advances on credit cards is likely to be more expensive if possible at all.

Whether you are likely to be accepted for a money transfer card with a large enough limit will depend on your finances and credit file, but if you are only just able to make the repayments on your current debts you may find you will struggle.

glentoran99

lukewallace87 wrote: »

They are all personal loans

1) I'm currently paying off a loan for a car which I purchased almost 3 years ago and still owe £7k. (£281 a month) still got 2 years left.

2) Tesco loan which is £127 a month but ends in July this year.

3) Hitachi loan which I got for training courses and that's £80 which still has 2 years to run.

I'm unsure on the rates but I know the rate on my car loan was stupid. (even worse... I wrote the car off after 8 months!)

Did your car insurance not at least cover the majority of that?

lukewallace87

Thanks for your replies so far.

I'm a little confused.. So basically instead of getting a credit card try the MBNA card? I don't really want a credit card as such because once I've paid off my debt the card will be going in the bin as I dont want to run up anymore debt.

Is the MBNA a credit card which i then transfer the funds into my bank account and pay off existing debts that way?

Sorry if these questions are wrong, i'm new to this.

lukewallace87

glentoran99 wrote: »

Did your car insurance not at least cover the majority of that?

Yes it did... I got most of the cash back and then had 4 holidays, bought a new car and also proposed to my girlfriend.

Tixy

lukewallace87 wrote: »

Thanks for your replies so far.

I'm a little confused.. So basically instead of getting a credit card try the MBNA card? I don't really want a credit card as such because once I've paid off my debt the card will be going in the bin as I dont want to run up anymore debt.

Is the MBNA a credit card which i then transfer the funds into my bank account and pay off existing debts that way?

Sorry if these questions are wrong, i'm new to this.

First find out the interest rates on your current debts. It is pointless considering a credit card or any form of refinance until you know this.

Then work out what you can afford to repay a month in total to your debts.

Then come back with that information and people could advise you further.

lukewallace87

Tixy wrote: »

First find out the interest rates on your current debts. It is pointless considering a credit card or any form of refinance until you know this. .

I will find out this information tonight and come back to you tomorrow.

Thanks,
Luke