using high APR loans to clear minimum payment accounts.

njs22

I am wondering if any one can help.

I have two credit cards both on very low rates but only ever seem to afford minimum payments.I have resently tried applying for a loan to consolidate and sart clearing the amount owed quicker. After applying for various loans i find myself only being offered credit by companies offering rediculus rates e.g yes loans, welcome finance and provident.

I then recieved a call from HFC/Beneficial finance offering me a guaranteed loan to reduce the APR on a retail account for pc world i have with them. After some sales talk they invited me to there office to discuss loans for consolidation as well.

when i went to there office they then offered me a £5000 loan at 33% apr:eek:.I was shocked as they said they would reduce the apr i was paying for my retail account. They said they are more a debt management company than loan company and that i could take a loan at 33% and then in a few months they would review my credit rating and then move me onto a better APR. They said that it would be better to be paying a higher APR and having the cards clear than keep paying minimum payments as at least on the high APR i will clear the debt quicker.

i was wandering

A, is it a good idea to take the higher APR but clear the debt quicker on the lower APR credit cards and

B, is this acctually aload of sales patter and the debt mangemnet ficticious as they will possible never remove me from the high intrest account.

for the moment i have told them along with the others that they can keep there ridiculus rates.:D

chambta

If you can only afford to repay the minimum on the cards how can you afford to repay a loan for the same debt at a higher rate? And more to the point why would you want to do it?

GeorgeUK

Walk?? RUN!!!!

The quickest way to pay off a debt is to pay off the highest interest rate first.