Loans V Credit Cards

[Alm1986]

Hi all,

I'm in a quandary as to what to do for the best. I've got £8k of credit card debt (over 4 cards) and £2k remaining on a loan.

One of the 0% interest rates is coming to an end (with a balance of £4k on it). Having had a quick look on money supermarket there aren't any deals out there for me to balance transfer.

My bank will give me a loan large enough to clear everything into the one monthly payment of around £380 over 30 months.

Currently between the cards and existing loan (which finishes in April) I pay around £700 a month so could afford to make overpayments to the loan and have money left over to prevent getting into new debt.

I can't decide on whether to take the hit on the higher interest finishing on the £4k, then diverting the value of the loan payments to the credit card bill come May, or, just consolidate now.

Being so close to finishing the loan is putting me off taking another one out, but I'm totally aware that I'm only making minimum payments to the majority of the debt.

Any thoughts?

Hard to say not knowing what the other cards are and what interest you are paying on them. But I am assuming the interest of a loan is nowhere near as high as the interest on a credit card.
Can you be more specific?

Hi thanks for the reply.

The card moving off 0% shortly is going to 27%.

The loan is 9.5%. Not great, but still no where near the credit card %.

And I guess there is the answer lol.

Right, look at balance transfers on another 0% credit card, look on money saving expert website, it allows soft searches.
What’s the penalty for paying the loan early, do you know?

There is no charge for paying off the loan early, and the potential new loan allows additional payments / over payments too.