Can i pay of a paypal credit debt by getting a 0% credit card?

superwoman1

Hi, so i ran up debt of £640 PayPal credit since my dad passed away last year and also 460 on a co op credit card and now I need to pay it back and get back on track. I have an income so could pay £60-100 a month easily but the interest I have no is really stressing me so wondered if i got a 0 percent Credit card if i could transfer the paypal balance, know i can for the other. Any advice greatly appreciated.

Willing2Learn

Hi, I believe that to make the transfer possible, you would need a Money Transfer card with a 0% APR promotional window. (You would still have to pay a transaction fee for moving the money from the card to your current bank account).

https://www.moneysavingexpert.com/credit-cards/money-transfers/

middleclassbutpoor

As stated above - a money purchase card is what you need, a loan maybe better though in all honesty.

Transaction fees mean you are not really getting it at 0% so don't be fooled by that. A credit card may give you more room to increase your borrowing easily without much thought/effort as you are usually limited to transferring 90% of your credit limit.

I would therefore possibly look to consider a personal loan over 12 months. At least you borrow what you need and you have a set term where once paid, it closes down. Interest rates aren't known until you apply so it could mean you get a slightly higher rate but for me that would be the better option. You know what is affordable, its structured to the term you know is affordable and at 12 months - its not going to feel like a millstone for you.

Sharon87

middleclassbutpoor wrote: »

As stated above - a money purchase card is what you need, a loan maybe better though in all honesty.

Transaction fees mean you are not really getting it at 0% so don't be fooled by that. A credit card may give you more room to increase your borrowing easily without much thought/effort as you are usually limited to transferring 90% of your credit limit.

I would therefore possibly look to consider a personal loan over 12 months. At least you borrow what you need and you have a set term where once paid, it closes down. Interest rates aren't known until you apply so it could mean you get a slightly higher rate but for me that would be the better option. You know what is affordable, its structured to the term you know is affordable and at 12 months - its not going to feel like a millstone for you.

Loans of low value are usually more expensive than a money transfer card fee. CCs are better for smaller amount. Loans are better for thousands rather than hundreds.

middleclassbutpoor

I said the loan would possibly be a higher rate in comparison.

I don't know enough about the OP situation but the limited information which indicates poor financial decisions in a time of stress for me would still say that it should be a decision between

- what costs less but gives opportunity to get into a cycle of debt and end up borrowing more when something else happens to cause similar decisions to be made.

- what gives me the option to get this repaid and the strictness of not having access to further credit.

If there is no history of emotional spending and/or there is confidence to be strict then I completely agree that the CC would financially likely be the better decision.