Is a loan better to repay credit card debt?

piggybankrupt

I have around £6000 credit card debts altogether. I've transferd to 0% cards in the past but paying transfer fee each time.

With credit crunch I think this time I'd rather go for low rate life of balance which seem to be around 6% as I'm not the best at remembering when to switch and would rather this time be secure in a deal until balance paid off.

I'm intending to pay around £200 per month off the debt but isn't it simpler just to get a loan for this amount (unsecured). The only downside I can see is perhaps that I couldn't make overpayments when I have extra cash.

To further complicate things if I use a credit card I want online statements only - no paper ones!

darkblue_2

Hi there,

I think it would be best to transfer this debt to a consolidation loan. The credit crunch means that it will be harder to get 0% balance transfers in future (if at all) and APRs will probably rise across the board. Along with that, it will also be more difficult to obtain credit in general, therefore you could have problems securing all these 0% credit cards.

Try and find the best loan deal that is fixed for the duration of the loan.

moneysupermarket seems pretty good in my experience.

Db

piggybankrupt

Thanks - that's what I thought - I don't want to be panicking every few months waiting to get cards approved - I'd rather just set up a loan payment and forget about it - besides which I always seem to make purchases on the cards & increase the debt further depite promising myself I won't!. You can't do that with a loan!