Balance transfer or loan?

astreet3

I need some advice on the best way to pay of some debt. My wife and I have thankfully successfully fought a court battle against a building society, won't go into the details but we are now left with a bill of arond £6000 to pay in legal fees. What I need advice on is how we should pay this off? As I see it we have 3 options:

1. attempt to pay this off in full using what little money we have saved. This money currently is off-set against our mortgage so saves us interest on that.

2. get a loan over 2 years (which should be affordable) but will cost well over £400 in interest.

3. pay with a credit card cheque (fee will be around £180) and immediately transfer to a 0% fee 0% interest balance transfer card and pay it off as much as possible each month transfering to another 0% card when the deal runs out

I'd say the loan is out but can't figure out if the benefit of having savings offset against the mortgage means I should go with the credit card shuffle!

Any advice gratefully received!

Thanks

Andy

Zebedee69

Claim costs from the other side?..... If they lost then shouldnt they pay.....

astreet3

no chance of claiming the costs, we settled this out of court and we have this bill regardless.

CLAPTON

you dont saywhat the interest rate on the mortage is but....
lets say its 6% then if you use the offset but 'repay' the equivalent money over two years then it will cost you about 360 in interest.

So if you have to get two BTs at 180 each its very similar... but you have the extra uncertainty and hassle so I would pay it from the mortgage offset.

astreet3

thanks Clapton, that was my gut feeling, just nice to get a second opinion!

MABLE

andrewd wrote: »

I need some advice on the best way to pay of some debt. My wife and I have thankfully successfully fought a court battle against a building society, won't go into the details but we are now left with a bill of arond £6000 to pay in legal fees. What I need advice on is how we should pay this off? As I see it we have 3 options:

1. attempt to pay this off in full using what little money we have saved. This money currently is off-set against our mortgage so saves us interest on that.

2. get a loan over 2 years (which should be affordable) but will cost well over £400 in interest.

3. pay with a credit card cheque (fee will be around £180) and immediately transfer to a 0% fee 0% interest balance transfer card and pay it off as much as possible each month transfering to another 0% card when the deal runs out

I'd say the loan is out but can't figure out if the benefit of having savings offset against the mortgage means I should go with the credit card shuffle!

Any advice gratefully received!

Thanks

Andy

IMHO not much of a successful outcome when you are left with costs of £6000. I know you were asking the best way to service this debt but found it somewhat odd.

astreet3

Mable, not going into too much detail but a bill of 6k seems quite cheap compared to losing our family home.

joan_brennan

If you are considering tarting you need to take into account these issues. everytime you need to transfer you pay a fee when i first started i dont think i paid anything but the latest one ( this month was 2.5% of the balance. Also some of them are only 6 months so you need to be thinking about it every 5 months (to be sure you dont go over the 0% deal) also i have twice set up d.d. 's that i had made mistakes on and the money did not go to the correct account and i had to plead to get them to accept my genuine error and forgive me. Appartantly i broke the terms of the 0% deal and legitemately they can withdraw their offer putting me onto the full normal interest rate.and having watched this site for the last 3 years i think the gist is that these 0% deals are getting less and less. just on a positive note though it has been a great saving for me.