# Credit cards into Loan



## arret (12 Mar 2008)

I have a couple of credit cards and loans ..

3500 on a credit card - paying minimum payments each month and paying about 60 in interest.
2000 on another credit card - the way it is I'm meeting the full payments required each month at the moment.
2500 on a loan and 2000 on another loan.

That's debt of about 10k.

I was thinking of getting a personal loan for 10k and paying off 200 a month over 4 years.

Does anyone think this might be a better option than how it's all going at the moment?

Thanks for the advise

p.s. yes, the credit cards will be gotten rid of once paid off.


++ edit 
Sorry, only just read the sticky and I've answered some of the questions below ..

Age: *early 20s*
Spouse’s/Partner's age: *n/a*

Annual gross income from employment or profession: *maybe 1600 a month*
Annual gross income spouse: *n/a*

Type of employment: e.g. Civil Servant, self-employed *don't really wanna answer*

Expenditure pattern: In general are you spending more than you earn or are you saving? *yes*

Rough estimate of value of home *n/a*
Mortgage on home *n/a*
Mortgage provider: *n/a*
Type of mortgage: Tracker, interest only, fixed rate *n/a*
Interest rate *n/a*

Other borrowings – car loans/personal loans etc *credit cards with 2000 and 3500. loans for 2500 and 2000*

Do you pay off your full credit card balance each month? *not the one with 3500 due on it*
If not, what is the balance on your credit card? *as above*

Savings and investments: *n/a*

Do you have a pension scheme? *n/a*

Do you own any investment or other property? *no*

Ages of children: *n/a*

Life insurance: *n/a*


What specific question do you have or what issues are of concern to you?


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## phileasfogg (13 Mar 2008)

I'd say yes, definately get rid of the 3500 credit card anyway.  You are paying 60 a month in interest, but its never getting any  smaller.  Even if you paid just a 60 a month into a loan at least it would disappear eventually.  

Combining all the loans might be a good idea depending on what APR they are.  You are likely to get a lower interest rate if you have one bigger loan than several smaller ones.
  Try to keep up the same rate of repayments as you are paying now, so that you are putting yourself into a better financial condition.  For example, if you repay 300 a month in loans now, try and keep the repayments on your combined loan at at least 300 too (if you feel you can afford it). And if you can put a bit extra in each month you can get the loan paid off early so it won't be an issue if you want to buy a house or car in a few years time.


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## arret (18 Mar 2008)

I've got a 100% perfect repayment history and always put some money into my credit union account as savings each month too.

I'm a bit warey of asking for 10k though, as I feel like this is a massive amount for someone my age (maybe I'm way off the mark?).

Also ... I have about 2k in savings in the credit union and owe about 4.5k in loans to them. Does it make sense to ask them to credit the 2k savings off the 4.5k in loans? Or would this even be possible given the 2k is security on the 4.5k in loans?

I do put about 100 into my cu shares / savings account each month aswell as paying off about 160 for the loans. Should I be doing this differently ?

Thanks guys.


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## chestnut (19 Mar 2008)

Arret, I just logged on as I was going to post a similar question, again wanting to see what others would advise.  I have about €10, 000 also to pay off and i do think it would be better to pay back a single loan over 4/5 years than the way I currently am.

I'm very interested in what others think.  Of course I was silly to let my credit card build up (€10 isn't all credit card) but I feel I am paying over the odds now and if I had a personal loan I would tidy myself up finacially and can get myself back on track.

Chestnut


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## Gus2008 (19 Mar 2008)

Arret

€10,000 really isn't that much in the greater scheme of things. Besides, you are in €10,000 debt whatever way you look at it so at least by having one loan, you'll be paying less interest. 

I would advise using the €2,000 savings to get a loan for €10,000 and amalgamate your existing debts that way. Alternatively, use the €2,000 savings to clear one of your CU loans and take out another loan with a financial institution for the balance of €8,000. Most importantly, pay back as much as you can each month. €200 seems low enough if you are currently paying more like €400 a month (implied in your loan repayment details, minimum credit card payments etc.)

Regarding your CU savings/ loan repayments, (i think) the interest for CU loans is deducted from your savings account so you need to keep saving a bit to pay off the interest. The loan repayments go directly towards clearing the capital. But, your focus should be on clearing the loan(s) and then building up your savings.


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## ailbhe (19 Mar 2008)

I got my first loan at 18 for 2k, next one for 6k at 22 and more recentley 12k at 25. If you ave been making regular repayments to your credit cards and you have been building up savings etc you shouldn't have any problem getting a loan. You should get a loan to cover the credit cards at least. It will free up money every month and you won't be paying it back for as long as the interest rates are lower.


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## Bronte (20 Mar 2008)

Bear in mind that if you get a loan to pay of the credit cards that many people end up starting again building up debt on the credit cards and end up in a worse situation.  The first question you should ask yourself is am I strong enough to cut up the credit cards.


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## demoivre (20 Mar 2008)

arret said:


> I have a couple of credit cards and loans ..
> 
> 3500 on a credit card - paying minimum payments each month and paying about 60 in interest.
> 2000 on another credit card - the way it is I'm meeting the full payments required each month at the moment.
> ...





> arret              *Re: Credit cards into Loan*
> I've got a 100% perfect repayment history and always put some money into my credit union account as savings each month too.
> 
> I'm a bit warey of asking for 10k though, as I feel like this is a massive amount for someone my age (maybe I'm way off the mark?).
> ...


The way I'm reading this you have 14.5 k debt with 2k in savings. There are institutions offering loans for refinance purposes such as the ones linked to in this thread. You could try and borrow the 14.5 k from Rabo and then use the 2k savings from the cu to make a lump sum repayment, without penalty, against the loan. Alternatively you could try and avail of interest free periods by switching credit cards to clear your cc debts. Select credit card in  here and see what offers are available.


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## arret (25 Mar 2008)

Is it a good idea to tell a Lender that you want the loan to pay off a credit card which you are only paying minimum payments on? Is this looked on negatively?


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