Shall I transfer £3k credit card debt to loan?

[jakethepeg]

I have £3k outstanding on 2 credit cards (1 0% interest for a year the other high interest). I am determined to cut my credit cards up and manage on what money I have got this year!! I can get a loan of £3k for 3 years at a low rate as I have an excellent credit rating (according to money supermarket) - shall I do it? It seems to me to be the best option as I'd be paying a set amount each month and would know where I stand. Is there is a catch to doing this to do you think?
Thanks

Not that I know about these things but would that be a secured or unsecured loan?

Is there any chance that you could pay it all off within 15 months? Saw an ad today from Virgin who are offering 0% interest on balance transfers to their credit card, but think it only lasts for 15 months. Interest free has got to be better!

I dont think theres a catch. I did this a couple of years ago and cleared it all.

I'd say it depends on whether it's going to take you 3yrs (or more) to clear both the CC's you have??

It's got to be worth transferring the high interest one to a lower or nil rate of interest. You can always move the debt on again once the interest-free period expires if you don't clear it in the meantime.

Remember most of what you're paying now is probably repaying the interest and a little bit of capital.

Move it to a 0% interest free credit card, cut up the card so you cant use it, then start making regular repayments every month by dd. If you dont manage to repay in the next year, then do the same thing again next year and keep moving until you clear it. No need to pay any interest.

Go to moneysavingexpert.com to see which cards are best but think he recommended HSBC and Halifax before Xmas for balance transfers

HTH

And when you've repaid it, set up a standing order for the same amount each month as you've paid out to clear this debt to go towards savings/pensions or overpaying your mortgage. You'll be used to not having that money each month so you may as well make it work for you elsewhere .

Wow thanks for replying so quickly. It would be an unsecured loan and APR is 7.9%.

Can only afford around £100 p/m so no way could clear in 15 months Santa - although I could maybe apply for a Virgin card for the £1k that is still on a high int rate card I guess, I could pay that off in 15 months. Hmm, thanks.

I really wanted one lump debt and one direct debit paying it, I really wanted rid of the credit cards but then I guess paying 7.9% is stupid when the cards are 0% for now?

Does it matter that I would then have 3 credit cards in my name (none in use though!!).

I have 6 credit cards in my name - all at 0% and some up to £10,000 available credit. Apply for the Virgin one.