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Loans and credit card advice

Timewellspent
Posts: 1 Newbie
in Loans
I just wanted some advice as I'm at a bit of a loss what to do at the moment as all I'm seeing is pound signs and I'm in a really lucky position and don't want to blow it.
I recently applied for a credit card and loan and managed to get approved for both but am unsure what to do now as I potentially didn't need both although it helps massively.
So current debt on credit cards total approx £3000. My aim was to switch these to the new credit card as there is a 0% interest rate and the cards have the usual 21% to 30% Apr (I have three cards and can't remember exactly the rates).
The new card has a limit of £8700. There is a balance transfer fee of 2.9% and cash to bank account transfer fee of 4%. The credit card balance transfer is 0%apr for 19 months. The cash transfer would be 0%apr for 12 months. I took this card out with the intention of transferring the balances of all three credit cards and paying this off gradually to take advantage of the 0% offer.
I took out a loan at 2.9%Apr of £15,000, (for 7 years) primarily this was to pay off a car loan which was at a 10.9% rate for the next two years, so I paid that off already at an early resettlement payment of £5500, so I have £9500 remaining of the loan. The new loan's monthly repayments were cheaper than the car loan so I knew the loan was manageable and would still be once the car loan was paid off.
So my questions are:
1) Was I stupid paying off the car finance with the loan and should I have used the credit card to do a money transfer to my bank account and pay it off that way? Its a bit late now but to 'undo' that I guess I could still do the transfer and make a down payment on the loan.
2) Do I transfer the credit cards over or do I just pay them off using the loan?
Third question is about how to wisely use the loan/credit card.
I need to get my windows on my house replaced as they are the old aluminium ones (secondary reason for taking out the loan). This will cost approx £5k. So do I use the new credit card which also has 0% on purchases for 12 months, or do I use the loan?
Lastly just in case anyone asks I'm in a secure job it's not fantastically paid but it's permanent and secure and I can make the repayments just obviously don't want to go above the debt I now currently have.
Thank you
I recently applied for a credit card and loan and managed to get approved for both but am unsure what to do now as I potentially didn't need both although it helps massively.
So current debt on credit cards total approx £3000. My aim was to switch these to the new credit card as there is a 0% interest rate and the cards have the usual 21% to 30% Apr (I have three cards and can't remember exactly the rates).
The new card has a limit of £8700. There is a balance transfer fee of 2.9% and cash to bank account transfer fee of 4%. The credit card balance transfer is 0%apr for 19 months. The cash transfer would be 0%apr for 12 months. I took this card out with the intention of transferring the balances of all three credit cards and paying this off gradually to take advantage of the 0% offer.
I took out a loan at 2.9%Apr of £15,000, (for 7 years) primarily this was to pay off a car loan which was at a 10.9% rate for the next two years, so I paid that off already at an early resettlement payment of £5500, so I have £9500 remaining of the loan. The new loan's monthly repayments were cheaper than the car loan so I knew the loan was manageable and would still be once the car loan was paid off.
So my questions are:
1) Was I stupid paying off the car finance with the loan and should I have used the credit card to do a money transfer to my bank account and pay it off that way? Its a bit late now but to 'undo' that I guess I could still do the transfer and make a down payment on the loan.
2) Do I transfer the credit cards over or do I just pay them off using the loan?
Third question is about how to wisely use the loan/credit card.
I need to get my windows on my house replaced as they are the old aluminium ones (secondary reason for taking out the loan). This will cost approx £5k. So do I use the new credit card which also has 0% on purchases for 12 months, or do I use the loan?
Lastly just in case anyone asks I'm in a secure job it's not fantastically paid but it's permanent and secure and I can make the repayments just obviously don't want to go above the debt I now currently have.
Thank you
0
Comments
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1) No, it will save you money in interest2) Pay off the cards - saves you interest and avoids the fee for the BT3) If the provider will take a credit card, I'd take advantage of the 0% purchase then set the minimum payment to be the total / 12 so the balance is paid off over the term to avoid interest while giving you extra cash while you deal with the loan
2
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