Personal loan

Sury

Hi there,

I have recently approved a personal loan by Barclays for a holiday purposes. The amount is
£ 8000 with 5 years fixed sum loan, APR 22,9% which is £ 215.51 monthly.
I just wonder if I able to use part of the money to pay my credit card debt which is £ 3500, is that allowed to do so ? Please please kindly advice.

Thank you in advance.

[Deleted User]

No real reason stopping you and better than blowing it on a holiday you can't afford.

But what is the rate on your credit card?

tomtontom

Is the credit card debt at a higher rate than 22.9%?

Rather than taking out *any* further lending I would speak to Stepchange or another debt management charity. Hopefully they'll advise against high interest loans for holiday purposes.

MallyGirl

you took a 5 year loan to pay for a holiday ?

foxy-stoat

Yes, pay your credit card off then cancel it, or you will be back here in a year in twice as much debt as your in now.

I would also postpone a holiday for 2.5 years until you have paid half the loan off.

Pixie5740

Yes, you could use some of the money to pay off your credit card, whether or not it's worth doing depends on the rate of your credit card.

Do you realize that £8k loan is going to cost you almost £13k. 22.9% APR is a pretty horrendous rate of interest.

dealer_wins

Can you imagine paying £215 a month for a holiday you took in 2012 and cant even remember. Thats what you are going to be doing OP.

Dont do it, holidays are a luxury and should be paid for out of savings only!

soolin

dealer_wins wrote: »

Can you imagine paying £215 a month for a holiday you took in 2012 and cant even remember. Thats what you are going to be doing OP.

Dont do it, holidays are a luxury and should be paid for out of savings only!

I must remember that example, it is a brilliant way of saying it. Usually people are asked will they still be remembering the holiday in 5 years time and as they are excited by the idea of the holiday will normally say yes. Turning it about and asking would they still be remembering a holiday they went on 5 years ago might just make them think, I certainly would really begrudge still having to pay for a holiday in 2012 , I doubt I would even be bothered to check out the photos anymore which would be parked half forgotten on my external hard drive.

I am lucky enough not to have money issues, but certainly wouldn't be spending 13K on a holiday.

OP Please do listen to the excellent advice that the others have given you.

Brock_and_Roll

In fairness if it were a "once in a lifetime" trip that you want to be able to do whilst you are able to e.g. to on the Haj with an elderly parent, then there might be a little justification.

jonesMUFCforever

I will make 2 points

1 First time post

2 Asking a question which is meant to inflame answering posters (8 grand over 5 years for a holiday)

No more to be said the purple danish fella won't be back to answer.

Sury

Thank you for your advice
My credit card interest is 21.9 % and I am earning £ 1100 monthly ( after taxed, pension & NI ). The only reason I've borrowed loan so I can budget my finance a little better and I hope I can save more money after pay off my credit card.
Thank you