11,000 Card Debt. 0% v Personal Loan

manager065

Dear all,

Small dilemma here. I have a debt for just over 10k on one Credit Card. I want to start seriously hacking away at this amount and I am aware that there are essentially two routes available.
1) Swap balance over to another card with 0% interest.
2) Take out a personal loan.

Given that a card swap would need to take placeon average annually, it could incurr some substantial balance transfer fees.

Personal Loans of course give a fixed rate of interest.

Any advice as to which route?

Many Thanks.

wizard3891

will a new card company give you a 10k limit though? how is your credit rating?

dmg24

Agree with wizard, the primary factor is who will lend you that amount, and if it is as a loan, at what rate.

You need to look at specifics. How long do you expect it to take to clear the debt, what credit is available to you, and how much will you have to pay back for each option?

Zebedee69

Have you had a chat with card company. Sometimes they can slash the apr if you ask nicely enough ha ha!

You could get a 0% card and shift as much of the balance to it as possible therefore getting as much bang for you buck as possible.

I hate loans, too inflexible and you end up regreting it........

manager065

Hi, Thanks for this. My Credit Rating is excellent, in fact the card is nowhere near its authorised limit.

I have had no problems acquiring loans previously, but I am keen like everyone on this site to maximise options available to me, to save potentially hefty interest payments.

I am expecting to clear this within four years if possible at around £230 pm.

missile

Another option is to get a 0% card for your spending and use your "surplus" cash to reduce balance on card 1. However, first you need to address why you accumulated £10K debt.

NewbieMoneySaver**

Hello there,

I have has this problem in the past with one of my cards. I was unable to transfer the whole debt over so I just got more than one card.

You can then ask your current lender for any offers on their 0% card.

But as you say your credit rating is excellent, You should be able to transfer the lot across. Mine is not that good as I have applid for a few cards recently but have all mine in order.

I know MB*A are a good card company

Good luck keep us posted.