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Help: Balance Transfer or Cash Advance
Ladiesman020
Posts: 2 Newbie
in Credit cards
I have 2 credit cards, Lloyds MasterCard and Vanquis Visa. I owe £1,727 to lloyds, £1,188.58 to vanquis, I want to consolidate the vanquis debt into Lloyds and vanquis interest is 52%, I intend by paying off £500 a month on to 1 card. What would be best, a balance transfer or taking £1,100 out in cash to pay vanquis.
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Comments
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Never take a cash advance if you can help it - it shows on your credit file and you usually have much higher interest rates.
What are the interest rates on the card for each? If you don't have a promotional offer on there, have you thought about applying for a 0% Balance Transfer card so you are paying off the capital rather than the interest (obviously this depends on the fee to do a balance transfer):j PAID VERY, Barclaycard x3, Vanquis, Natwest, O/D, Tesco & MBNA x2 PAID :j LBM 24/07/15 - Original Debt: £0/31010.23 (100% paid) :eek:
Mortgage - £151.316.54 :eek:0 -
Definitely not taking out cash. That's the single most expensive thing you could do.
Do a BT, if Lloyds will process it. If they won't, you need a money transfer option.0 -
Vanquis is 52%, lloyds is 35%.
I'm NOT getting another card, just to consolidate!!!!!!0 -
Why not? You'd save £90 a month in interest on those balances.0
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BDo you have a 0% BT offer on the lloylds card? If so use that.
If not use the eligibility checker on the main MSE site and see what that throws up. Both of your current interest rates are horrible so if you can get a card with a significantly lower rate or even better a 0% rate then you should snap it up.
Also have you considered a personal loan? Again this could produce a significant saving against thos interest rates. I dont usually advise debt consolidation but in your case it may well be a decent course of action.
In your situation you have rightly identified that low interest rate is king. Shop around and get the best one you can.£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
!0 -
Do you even have a spare £1,100 left of your credit limit on the Lloyds card?
If you log into Lloyds online banking and click on your card, then click on balance transfer and it should bring up any offers they have given you.I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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