Is a personal loan the right choice?

MallyGirl

monetxchange wrote: »

I used a 0% balance transfer credit card to deposit money into my account to clear the overdraft. It was a Virgin card. Very simple and straightforward.

You used a 0% Money Transfer credit card. You cannot transfer money into your bank account via a balance transfer. Make sure that you use the right card for the purpose.

EssexHebridean

Victory7s wrote: »

Lenders give better interest rates at intervals. If I pay take the extra £200, I get 3.5% instead of 7.5%.

I wouldn't want to borrow any more than I would have to but I'd pay much less on repayments by borrowing that little extra.

You DID watch martin's Money Show didn't you - well done - this is a good point well made.

monetxchange

MallyGirl wrote: »

You used a 0% Money Transfer credit card. You cannot transfer money into your bank account via a balance transfer. Make sure that you use the right card for the purpose.

Sorry, yep, that’s what I meant. Used the wrong word. Made sense in my head! Was trying to put across that the only solution wasn’t a loan only to clear an overdraft.

enthusiasticsaver

Taking out a loan is consolidating rather than clearing debt and usually not recommended. What will stop you building up debt again? The usual result is that you would be back here again in 6 months with your £5k loan plus more credit card debt or overdraft. You need to address the problems in your budget first.

No guarantees you will get 3.5% and taking longer to repay it would mean more interest. A money transfer for the overdraft would mean that would be gone in 6 months with some financial discipline.