Advice on paying off loan using a credit card or other methods?

andyfromotley

ah ok, you are keeping the same job?

I still say lodge somewhere until you get your bond back and save a bit. You really don't need this new debt.

If you insist on doing it then you i think your only realistic way is to take on another loan at the lowest rate that you can get.

ViolaLass

If you're moving to help care for your mother, can't you move in with her to start with?

redpete

Allensham wrote: »

- I can't afford to have two loans running at the same time so my thinking is I'd borrow an amount to pay off my existing loan and have enough left over to assist with my move. So in total look for around £4500 lets say.

Option 1 - Keep the current loan (balance £2200) and get another one for £2300.
Option 2 - Get a new loan for £4500 and use £2200 to pay off the first.

I don't understand the difference except in the 2nd option you are asking initially for £4500 on top of the existing £2200 and hence less likely to be approved.

enthusiasticsaver

I am confused. If you are moving out of the area to be nearer to family won't you be moving further away from your place of work?


If you are moving to help care for your mum can you not move in with her initially. Borrowing money when you seem unclear about whether you will be working or not is a very bad idea IMHO. You also seem to be quite blas! about repayments and "confident" you can find another job should you need to. If you were that financially secure you would have some savings. Please think this through carefully. Borrowing money at a high interest rate when you have no clear repayment plan is not a good idea. Can your family not help you financially?

Allensham

Just to clear a few things up.

I'm not loosing my job or in any way shape or form implying I was going to. I was just re-assuring people that even if I did, I could get another one and still be able to pay any monthly payments due to a loan or credit card etc.

Without going into my personal life, I can't move into my mums. nor any other family members.

I can't borrow money off family because they simply don't have that sort of money, and if they do, they'd need it paying back much sooner than what I'd be able to afford.

I took some more time reading forums, people in similar situations and decided to take another loan to pay of my existing and with additional funds.

I wasn't able to afford paying two loans at once, hence taking another loan alongside my existing one, wasn't an option.

I was tempted to explore the credit card but I didn't 100% understand what I'd be doing and I needed advise sooner but I didn't get much joy here.

Anyways, on a positive note, I've opened a savings account, set up a direct debit and had a real hard think about my spendings meaning I should be able to free up some funds per month to add to an emergency fund pot

I've also decided to take some useful advise on some of the other threads on here and start a spreadsheet keeping track of what I'm spending.

With my workings out, I should of paid off all my debt by early 2018. So, I suppose that's something to look forward to...?

Thanks for all the responses!

enthusiasticsaver

That sounds a much more sensible option. A note of caution - credit cards are not the answer if you are in a low paying job and already have other loans. The interest rate is usually very high unless you pay it off immediately and you need to be very disciplined to do that. As you already have a loan and said you would struggle to pay a second loan I do not think taking on a credit card would be a good idea. The best thing to do once you have paid off your loan is to get a credit card and pay it off every month to rebuild your credit rating which eventually will give you good borrowing rates.


Good luck with the budgeting and saving. I assume you are not moving after all then?

fedos123

Using credit cards or other loans to repay existing debt can be a viable option, as long as the new loan has lower interest rate and you maintain a degree of discipline. I've done it in the past to successfully get rid of debt.

In the past, I've used Pocket Interest Rate, a free app from Google Play, to compare the amounts that I would overpay in interest over a lifetime of a loan and how long it would take to repay a loan with flexible instalments (e.g. credit card). The app even comes with a glossary to guide you through financial jargon. As well as this, there are many online calculators that would help.

The best kind of loan to get rid of debt that I found is zero-interest balance transfer credit card, but it is only useful for debt on another credit card. It does exactly what it says: you transfer the balance and pay no interest for some time. There are some websites where you can check you eligibility for one without a hard search on your credit history, so you can shop around without affecting your rating.


Hope it helps

AFK_Matrix

fedos123 wrote: »

Using credit cards or other loans to repay existing debt can be a viable option, as long as the new loan has lower interest rate and you maintain a degree of discipline. I've done it in the past to successfully get rid of debt.

In the past, I've used Pocket Interest Rate, a free app from Google Play, to compare the amounts that I would overpay in interest over a lifetime of a loan and how long it would take to repay a loan with flexible instalments (e.g. credit card). The app even comes with a glossary to guide you through financial jargon. As well as this, there are many online calculators that would help.

The best kind of loan to get rid of debt that I found is zero-interest balance transfer credit card, but it is only useful for debt on another credit card. It does exactly what it says: you transfer the balance and pay no interest for some time. There are some websites where you can check you eligibility for one without a hard search on your credit history, so you can shop around without affecting your rating.


Hope it helps

It's not only good for paying off another credit card is it? It can be used to pay off a loan too. Your basically getting a lump of money from the Super Balance Transfer Credit Card and what you do with it is upto you. So you could pay off a loan, buy a car, do some home decorating etc etc.