# Credit Card Q please?



## Daisydoo (8 Jan 2009)

Hi, I have 4,000 euro on cc at present. I intend to start paying 500 euro per month off this from next month. Would I be better getting a loan from credit union to pay this off? Would it work out much cheaper in the long run? I have no other loans (apart from mortgage) Thanks x


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## Celtwytch (8 Jan 2009)

It would depend on the rate of interest on your credit card.  Most general loans from the Credit Union are about 10% APR.  If your credit card rate is higher than that, then it would be worthwhile.

Have you considered switching your card to another provider?  If you were to go with one that gives 6 months interest free on balance transfers, and pay €500 per month as you intend to do, then you would have €3000 paid directly off the balance at the end of the 6 month period.  Take a look at www.itsyourmoney.ie to compare cards.


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## Daisydoo (8 Jan 2009)

Thanks for your reply - very helpful. Just 1 question - 0% on transfers for 6 months sounds good but if you use your new card for purchases, do you get charged full interest on the total sum including the transfer amount? Thanks, D.


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## ClubMan (8 Jan 2009)

Depends on the offer. Read the _T&Cs_.


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## PaddyW (8 Jan 2009)

If you have 4000 on it and need to borrow to pay it off, I would recommend not using it again!


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## Celtwytch (8 Jan 2009)

You're welcome 

With regard to your next question, as Clubman says, it depends on the offer. Some cards will give 0% on the balance only, while others will give 0% on the balance and a reduced rate on purchases. This means that there will be no interest on the amount you transferred to the card, but any purchases you make will be charged at the relevant rate. 

The important thing to watch for is what the rate will be at the end of the introductory period. There is no point in getting a card that gives 0% on balance and/or purchases for 6 months if the rate then shoots up to 15% or 20%.


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## gar123 (8 Jan 2009)

hi daisy

in the past i was did what you are going to do, but i rang my current cc supplier and asked them nicely seeing as i was a current customer, and also that they earned commission everytime i purchased something was there a chance of going on 0% for a while to help me clear down debt

they gave me 6 months there and then, you dont always need to go through the hassle of changing cards and its nice to give business back to someone who gave you the card

good luck


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## PaddyW (8 Jan 2009)

Gar, May I ask who your CC supplier is?


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## acer120 (22 Jan 2009)

i am in the same boat as above.  I am with mbna and i owe just over 5000.  last month i only paid off 100 because i am tackling the credit union fairly hard.  However, out of the 100 i paid mbna i think only 12 euro went off the balance and the rest was interest.


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