Best way to clear credit card balance?

Kerry1234

Hi, I currently have a credit card balance of £5000. The interest free period ends in March. What is the best way to approach clearing this debt? Do cards allow for a balance transfer of this amount? Or would a loan be a good idea? Ideally I'd like to pay this off monthly in no more than 5 years.

Thanks

YorkshireBoy

Kerry1234 wrote: »

What is the best way to approach clearing this debt?

There are 3 ways out of debt:

(1) Earn more
(2) Spend less
(3) Restructure the debt, ie get a better interest rate

Grabbing a 0% BT card, and another in 2-3 years time, will satisfy (3), but 5 years to clear £5K is a ridiculously long time...so what are you doing about (1) & (2) to speed things up a little?


To answer your direct question, yes you can shift £5K...but only if you have an impeccable credit history and a good income/other financial circumstances. I'm guessing you haven't got the income, as otherwise you'd be able to repay faster than 5 years.

rehanmalik3030

Kerry1234 wrote: »

Hi, I currently have a credit card balance of £5000. The interest free period ends in March. What is the best way to approach clearing this debt? Do cards allow for a balance transfer of this amount? Or would a loan be a good idea? Ideally I'd like to pay this off monthly in no more than 5 years.

Thanks

If your interest free period ends in March 2016 then you do not have much time.

Apply for a 0% balance transfer card, if successful then when faced with two equally tough choices ie earn more or spend less, most people choose the third choice, to procrastinate!

Good Luck!

book12

In addition to the above suggestions by other people, you can use your £5000 of savings to pay it off.

rehanmalik3030

book12 wrote: »

In addition to the above suggestions by other people, you can use your £5000 of savings to pay it off.

Thats funny!

If they had 5000 in savings they would not be on this forum asking for balance transfer or loan advice.

The author of the threads entire foundation has been on the premise of partying hard, networking, and enjoying life. Instead of saving money or pay as you go.

When you deprive yourself, you dont learn how to treat yourself and having savings and not living on the edge of being penniless strips your soul of poetry!!