Best option for paying off Credit Card Debt

D

dolles

Guest
I have an MBNA platinum CC APR 13.9%, Maxed out to the limit 3500 at the moment. Want to clear it and was wondering what's the best way to do this.
Would balance transfer to another credit card with 0% APR for 1st 6 months be the best option and if so which credit card
or would getting a personal loan with a 3.9% APR be better as I will need to make purchases during the next 6 months on the card. I received a letter from MBNA offering a personal loan @ 3.9% APR, did not read too much into the T&C so may sound better in theory.
 
Its not really a good idea to get a loan to pay off your credit card so you can use it again. Why do you have to use your card in the next 6 months?
 
The best option is to sort out your lifestyle spending. If you continue to use your card while you're paying down debt, then you're repeating the mistakes of the past.

If there are items that you know you need to spend money on over the next 6 months (those that you need to retain the card for) then you could consider borrowing more on the personal loan and using those funds to pay for those items.

Bin the card
Live off cash
If you don't have enough cash, do without.
 
AIB : [broken link removed]

BoI : [broken link removed]

Only one's I can find so far, all the rest (?) seem to be personal, rather than student loans.
 
Items I need to purchase with the credit card are for a wedding and are considerably lower in price online than in shops. I have a wedding fund saved with my partner so I do have the cash for these items. Its is not a case of paying off the CC bill to run it up again. I understand once paid off I will need to pay in full for further purchases to avoid the same scenario. The wedding savings are joint savings and the CC bill is my own bill so not possible to use the savings to clear credit card bill either.
I do have personal savings which I can use to clear it. But its rainy day cash and I am hoping not to dip into it however do you think that may be the best solution??
I could afford to pay between 800 - 1000 euro per month until clear and avoid touching the personal saving in that case would balance transfer to 0% on balance and purchases for 1 st 6 months help me??
 
I simply do not understand why you would pay 13.9% interest when you have savings. I would also be curious as to what exactly you can purchase online for a wedding that is cheaper than using cash. Is it cheaper online when it costs 13.9% extra? You also could front load your credit card so that you do not use the credit thereby not incurring any interest payments whatsoever.
 
dolles said:
Items I need to purchase with the credit card are for a wedding and are considerably lower in price online than in shops. I have a wedding fund saved with my partner so I do have the cash for these items.
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The only way I would consider using the card is if you lodge saved cash in first and then use the card as a method of payment online.. Otherwise you are going to be back to square one before you know it. I know because I fooled myself in the past with every excuse possible as to why I needed to use CC. I'm now laser/cash only.
 
Bronte/nesbitt
I'm trying to balance paying the debt without touching the savings that's why I'm trying not to use my savings to repay debt if possible. I'm afraid that I may need my savings for something more important in the future such as redundancy or unable to work due illness or something else unforeseen.
Bridal wear is cheaper online then in shops.
May not have been clear in previous post but when I mentioned "I understand once credit bill is paid off I will need to pay in full for further purchases" I was talking about front-loading as you put it and hence would not pay interest. Although I have heard that items bought when your credit card account is in credit are not insured. Not sure if that is true or not but If so maybe a pre pay Credit card is a better option?? Lazer cards are mostly not accepted online so no use to me.
So back to my original question if I want to repay the credit card in monthly installments, Should have it repaid within 4 months. Would balance transfer with 0% interest be the best way to do to clear debt
 
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