Loan to pay off Credit Card debt?

Wasabi_2

I'd like to ask a quick question – (I apologise if it has already been asked)

If have an outstanding credit card balance of £3000 would it be worth while taking out a loan to pay off the outstanding amount?

My credit card interest rate is 12% and a loan would be in the around of 5%

I feel annoyed at paying a set amount each month and only half of that is again the debt, the rest being taken up with the interest.

Would this be a better solution to paying the debt off or should I just tart about card company’s?

Thanks in advance.

martinpike

How quickly can you pay the £3k off?

Wasabi_2

It will take a number of years, certainly longer than the length of the loan.

I don't know how to work out the actual length of time it would take me.

martinpike

How much can you pay towards it per month?

Wasabi_2

Around £100

martinpike

At 0%, that's two and a half years.

It all depends on your circumstances really. If you're going to go for a mortgage or something during that time, it might be more sensible to take the 5% loan.

If you're not, it's probably worth trying to play the 0% game for a while and see how you get on.

There's loads of info on here, both in Martin's articles and on other threads on here.

Get reading, and good luck.

Wasabi_2

Thanks for your help Martin.