Credit card and loan advice please

cazbarfeatures

Hi,

I have 2 credit cards at the moment, one is with Capital One and the balance is just over £5k, I've had it for a few years now. I tried to transfer the amount to another credit card offering 0% but they would only take £2k (at the time I had £7k on capital one. The second credit card is with HSBC and is 0% until April next year.

I don't understand interest rates but on Capital One I am paying between £50-£60 on interest monthly. I pay the minimum (big mistake I know) because at the moment that is all we can afford once our son goes to school next year things should improve and we will be able to pay more off. I do work part time btw.

I was thinking about ringing Capital One and asking if I could transfer my credit card amount to a personal loan as I believe the interest is less but before I do this I want to get your wise opinions on the matter.

We have got ourselves into a bit of a mess trying to cope with nursery fees on top of everything else.

many kind thanks
CAZ

CLAPTON

before even contemplating moving the debt you need to know its APR.. otherwise you might end up even worse off.

read the monthly statement and tell us what it says exactly about intererst or gives us the balance and the interest amount and we can work it out for you. ..or both is even better.

cazbarfeatures

thank you

Ok

I have exactly £5057.76 on Capital One and it says that if I make the minimum payment of £151.73 then my next interest payable is £60.36.

It also says Purchase Interest is 1.198% for the month.

does that answer your question?

Caz

CLAPTON

1.198% corresponds to a APR of 15.36%
so if you are going to try for a loan make sure
a. the APR is less than the above
b. don't get talked into taking out PPI
c. and check out the monthly repayement as you may find they are higher.

but also consider low LOB CC cards