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Original poster

Borrowing money to help through maternity leave - loan or credit card?

10 replies

Moomin · 12/02/2006 11:03

That's it really. I'll have no money coming in at all between March and June, going back to work 2 days a week June-August then all being well, back to normal wages from Sept from which time we will concentrate on paying off debts as much as poss.

Don't have any credit cards at the moment but do have a loan with cahoot which is down to about £2.5K. Would like money for UK seaside holiday in summer plus any essentials and help to tide us over.

OP posts:

Flamesparrow · 12/02/2006 11:09

I think I would go with credit card (a 0% deal thingy) - set up a standing order to pay off as much as you can possibly afford each month - do not reduce the payment for a "bad" month. Treat it as you would a loan repayment.

After the 0% period is up though, you need to transfer it to a different one/pay it off, or the interest will work out more than a loan.

CarolinaMoon · 12/02/2006 11:09

How about not bothering with the holiday?

It depends whether you like the flexibility of credit card payments or the discipline of fixed loan payments tbh. I guess you'd find a credit card cheaper too if you do it as a balance transfer.

expatinscotland · 12/02/2006 11:10

I'd say credit card b/c they generally have a lower minimum payment. That way, if your finances take a crash, you can pay the minimum. If you start doing well, you can pay over.

You can also be a rate tart and shift the balance from card to card and get the money interest free.

expatinscotland · 12/02/2006 11:10

I can understand wanting a small holiday. We haven't had one in 4 years and are going to hire a caravan in the Highlands no matter what!

Original poster

Moomin · 12/02/2006 11:12

Originally we weren't going to bother with a holiday but dd1 enjoyed it so much last year and it was lovely and didn't cost an awful lot. It would be something to look forward to. I think it would only cost about £800 if we booked it soon. But yes agree, it does sound unnecessary if there's no money!

OP posts:

CarolinaMoon · 12/02/2006 11:15

Well, we've got no spare cash and we're not having a holiday this year, just going on odd day trips to the seaside. It depends where you live I guess.

Flamesparrow · 12/02/2006 11:17

My honeymoon to Cyprus cost £800...

Flamesparrow · 12/02/2006 11:19

Sorry - typed my thoughts there, probably not relevant ...sorry again.

hercules · 12/02/2006 11:19

go camping!

expatinscotland · 12/02/2006 11:23

Hire a caravan. I used to camp a lot when I was childfree. I'd have to say, however, knowing what I do about camping, I have NO desire to do it this summer w/a 3-year-old and a 6-month-old baby.

We booked a two-bed caravan for an entire week for £350 second week in July.

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