Cheap Credit Card Loans Discussion Area

rimmer283

i agree with you there buddy!:money:

Fergie921

Hi was looking to borrow 3000 to add on to a new car but don't know if am better putting it on a credit card or get a loan. Ma credit scores good had loans before and paid them all back. But just wanted to see what would be the cheapest way. I know you can do balance transfers on credit cards before the interest starts but is it too much hassle? Any help would be appreciated thank you.

Tixy

Fergie921 wrote: »

Hi was looking to borrow 3000 to add on to a new car but don't know if am better putting it on a credit card or get a loan. Ma credit scores good had loans before and paid them all back. But just wanted to see what would be the cheapest way. I know you can do balance transfers on credit cards before the interest starts but is it too much hassle? Any help would be appreciated thank you.

How quickly can you pay the loan back? or how much can you afford per month?

Then you also need to factor in if you need cash or can pay by card, and if you can pay by card how much does the vendor charge for that.

Peter01

Its definitely amazing how you put your math skills in this blog about the credit card.totally impressive blog to share with others

DjShimmer

Hi Everyone

Im a muppett... its official...:rotfl:

I have managed to rack up a very large amount of personal debt and im a bit stuck as to what to do..

I have a loan with Barclays at 8.9% with a £11k balance but also £6k on a halifax card at 6.9% and £3500 on a virgin one at 1%.

I have just opened a Natwest with 0% balance transfer for 20 months... and I was planning on transferring the Halifax one to it. I then have various other cards offering 0% for 12 months which I was going to transfer the Virgin one as that is expiring shortly..

My thought was to increase my loan and make 1 payment automatically for about £500 over a 4 year term.. I know in the long run I will be paying more on interest but at least then its only one payment rather than large DD's every month.

Unsure what is the best plan of action?

Help please???:(

Tixy

Hi DjS

I would suggest you have a look at the snowball calculator - http://www.whatsthecost.com/snowball.aspx - and try out the different options.
And I would work out how much you can afford towards debts each months (do a detailed income & expenditure statement if you are not sure), no point in having a loan at £500 a month if you can actually afford £700, or can only afford £400.

Whilst you haven't given other details of your finanances you may find that you will struggle to extend your loan to consolidate the debts - your lender may already think you have too much debt/credit available to you. And a £20k unsecured loan is pretty massive - you'd need to be earning a high salary to even be considered for such a loan, especially when you already have at least £10k of other debt and presumably plenty of unused credit on your natwest card.
You bank loan lender will treat this new debt as in addition to anything you owe to another company - because they cannot be sure you will use it to pay off the other debts, or that you won't run the cards up again.

If you do manage to consolidate then you may find you are offered an even higher APR on the new loan (if you are offered a new loan). Even if you can keep the loan at 11.9% (and rates are usually higher above £15k than below) then it would still be £540 a month rather than £500.

Personally I would steer clear of consolidation, I don't see that its any harder to pay 2 or 3 payments to different creditors than to pay 1 payment.

DjShimmer

Tixy wrote: »

Hi DjS

I would suggest you have a look at the snowball calculator - - and try out the different options.
And I would work out how much you can afford towards debts each months (do a detailed income & expenditure statement if you are not sure), no point in having a loan at £500 a month if you can actually afford £700, or can only afford £400.

Whilst you haven't given other details of your finanances you may find that you will struggle to extend your loan to consolidate the debts - your lender may already think you have too much debt/credit available to you. And a £20k unsecured loan is pretty massive - you'd need to be earning a high salary to even be considered for such a loan, especially when you already have at least £10k of other debt and presumably plenty of unused credit on your natwest card.
You bank loan lender will treat this new debt as in addition to anything you owe to another company - because they cannot be sure you will use it to pay off the other debts, or that you won't run the cards up again.

If you do manage to consolidate then you may find you are offered an even higher APR on the new loan (if you are offered a new loan). Even if you can keep the loan at 11.9% (and rates are usually higher above £15k than below) then it would still be £540 a month rather than £500.

Personally I would steer clear of consolidation, I don't see that its any harder to pay 2 or 3 payments to different creditors than to pay 1 payment.

Hi Tixy

Thanks for replying... I think if it was a loan it was one payment structured over a term that has to be paid every month I would feel better than having three payments coming out... Maybe its me just being silly... Its just the thought of these other debt hanging over me.. on one loan I feel better!! Strange I know and also it stops me altering the payments etc.

Due to me being in debt most of my adult life I have a really good credit rating and I do earn a substantial amount. My husband and I did a budget planner on sunday and saw we were over spending each month with out even realising it.. so tonight is the piggy bank technique and working out what we are going to do with these debts to get us back on track..

Im annoyed and angry at myself... that I have let it get this bad and it has to stop now.

Thank you for the help

xljrxnorfolk

I located this article after researching cheap loans on moneysavingexpert.com. It did not even occur to me that I could "transfer" money from a credit card to a current account and did not think it was possible! After receiving a quote through Nationwide, the interest for a £2500 repaid over 2 years was £600 plus. However a balance transfer from Virgin credit card to our current account will save us at least £500 interest. We have set up a regular monthly payment and if we repay it after the 0% ends after 18 months, this will be a very cheap loan!! Excellent article, thank you very much and special thanks to Martin!

Lisa00

Its always very helpful to analyze the interest rate and other things related with any loan so it will give us complete idea about the loan.

kenzie1111

Hello, Please can somebody help me? In March last year I went to Ford with the intention of applying for a Lease Car agreement, as some friends of mine suggested that it was a good idea.
I have JUST (very bad of me I know, but you don't expect to be mis-informed) read through my paperwork and discovered I am in fact on a Hire Purchase agreement, NOT Lease agreement.
The Ford Fiesta Titanium car was brand new (I only had limited colour choice), and my monthly payments are a hefty £269:75, and if I wanted to buy at the end of the three year term I would have to pay an extra £4,834. The total being £15,555.
According to the agreement, I am fully responsible for the whole expense of maintaining the car, including tyres (I've had two punctures), services (must use Ford, nobody else), plus the tax.
Somebody please advise me on what benefits there are with Hire Purchase? As I don't see any at all!
Also, looking at the agreement this is how it reads:
(A) is £13,495 (cost of car + VAT)
(B) is total deposit (the £500 part exchange for my old car + £500 'Deposit Allowance' = £1,000)
(C) is total amount of credit (A minus B = £12,495)
(D) is credit charge (£2,050)
(F) is Purchase Fee (? £10:00).
(G) is Balance of Amount Payable (C+D+F = ££14,555).
(H) is Total Amount Payable (B+G = £15,555).

So is it me or did they actually ADD back on the deposit and part exchange that they minused off at the beginning? B= the £1,000?

I'm really angry that the clever Ford salesman completely took advantage of my lack of knowledge in these matters and probably took advantage of me being a woman too.
Can anyone help me?