Loan or Credit Card first

gnmarshall

Hi All,

Appreciate the advice in advance.

Here is my situation.....

I have a Car with finance that I have around £2500 left to pay. Costs monthly are around £170 per month

I also have a credit card that I owe around £3000 on and the interest free is up in July so I would like to get a balance transfer.

I would like to get a loan from the bank to settle my car debt. That will bring my monthly outgoings from £170 to £60ish. Then I can sell the car and pay off the loan with the money made from the car.

I also need to get a balance transfer credit card. One bank has offered me to apply to one for interest free balance transfer of 12 months with a limit of £5000 so I can do the transfer in one go. Other banks might not give me that limit.

My questions are....

Should I go for the Loan first or the balance transfer credit card?

Will getting one compromise me getting the other? I have a fair credit rating but if I get the loan will it decrease my chances of getting the credit card? (considering I will be settling one of my debts with the loan)

If I get the 12 months interest free credit card, can I apply for another balance transfer credit card in 12 months if I haven't settled the debt by then?

Sorry for the overload of information and thanks for the help

G

foxy-stoat

If you can get a barclay or virgin card with enough limit then you can do both, balance transfer and money transfer to your bank account.

Be sure to cancel the card your paying off as soon as the balance is zero or you will be in double the amount of debt.

You need to make your monthly payments at least £200 a month to the credit card so you wont be in the same position in 2 years time.

Will you be looking to finance the next car you buy?

gnmarshall

Hi Foxy-Stoat

Thank you for the reply. Much appreciated.

I've gone ahead with the 12 months interest free balance transfer credit card and it's been approved etc. If I can pay off enough in 12 months time, then the interest won't be that bad or I can complete another balance transfer next year.

With regards to the car, I probably will not get another. I have no need for one so it's just wasted money. I just want to settle this debt on the car and move on from it. Hence why I can get the loan, settle the car debt, sell the car and pay off the loan.

Thanks again for your reply

G