Clear loand or credit card?

PixelPound

Halfcat wrote: »

Will save 1400 of interest of the loan. But if I continue balance transferring the card debts then I will have the BT fee each time anyway.

So you need to consider how long the 0% lasts and the BT fee. If you are getting 2 years and paying 5% BT fee then you are probably not much better off than the loan (as the BT fee is based on the full amount).

What you need to consider is the cost of each over the 5 years, how long your 0% is and how likely you are to get new BT cards. It is about whether to pay off the loan to save interest and hope you can ride the BT luck further verses paying the cards and knowing the risk

Halfcat

Thanks all. Good points all. I have decided to clear the loan first, based on the 1400 saving in interest, and will hit the credit cards with the money that had been to pay the loan repayments. Will look at cancelling some credit cards too as I have a couple I don't use, and wife has a couple more, about 30K credit in all.

Thrugelmir

The squeeze on BT transfers has already started. Maximum terms have started to shorten. A couple of finance houses have already withdrawn from the market.

Likewise lenders can see BT accounts on credit reports. Therefore can identify debt which is simply being rolled over.