Balance Transfer or Loan
Sharondesa
Posts: 4 Newbie
in Credit cards
Hello
Me & my husband have about £23000 on various credit cards that we constantly move around and pay more than the minimum amount on every month. The charges to move these around is getting more expensive. We currently pay around £750 a month paying these off. A bank is offering us a good deal on a fixed 5 year loan deal that would see this full amount being cleared off. ( we currently do not borrow any more)
I am confused as to whether we should take the loan option and pay this fixed amount to one place monthly or carry on as before. Can anyone advise me?
Thank you
Me & my husband have about £23000 on various credit cards that we constantly move around and pay more than the minimum amount on every month. The charges to move these around is getting more expensive. We currently pay around £750 a month paying these off. A bank is offering us a good deal on a fixed 5 year loan deal that would see this full amount being cleared off. ( we currently do not borrow any more)
I am confused as to whether we should take the loan option and pay this fixed amount to one place monthly or carry on as before. Can anyone advise me?
Thank you
0
Comments
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use the calculator whatsthecost.com and see what the numbers tell you. it's a snowball calculatorYou're not your * could have not of * Debt not dept *0
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if you are still getting 0% BT deals, albeit with a fee, then I would stick with that. A loan will incur that interest every year, not as a one off. It would also allow you to take the foot off the gas a bit which is not great - you should be throwing everything at the cards while they are 0%I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
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Thank you; will bear this in mind. We are getting 0% deals and have a good credit scoreif you are still getting 0% BT deals, albeit with a fee, then I would stick with that. A loan will incur that interest every year, not as a one off. It would also allow you to take the foot off the gas a bit which is not great - you should be throwing everything at the cards while they are 0%0 -
Personal opinion and may not be the best deal.
Take the loan and close all but one CC (always handy for big purchase protection)
Reason is that you know what you will be paying for the next 5 years. Who knows how long you will keep getting 0% balance transfer offers. If they do dry up, what would you do then?Life in the slow lane0 -
then you get the loan for a smaller amount as you have been throwing everything at the cards on 0%I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Sharondesa wrote: »Thank you; will bear this in mind. We are getting 0% deals and have a good credit score
Your score means nothing.
You should be looking on cutting back and clearing the debt.0
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