# Need to clear CC Debt - new card or CU Loan?



## Plek Trum (29 Feb 2012)

Hi all,

a very brief and short question, would appreciate some advice.
Have spent the last few months getting a hand on my loans etc and would appreciate advice on the best way to clear the remaining balance on a credit card.

Credit Card balance: 2,060.
Do not clear it each month.
Pay minimum due of 102euro p/m - only knocks off interest 
(balance was previously 4060 euro at this monthly repayment. Paid 2,000 lump sum today)

Credit Union
Loan €4,923.92
Savings €5,744.92

Question: Am I better off transferring the credit card balance to a 0% card for 10 - 12 months and continue the 102euro repayments there
OR
Should I apply for a loan top-up with Credit union of 2,000euro - just pay credit card off in full and continue my weekly payment of 130euro to Credit Union? ( 117euro off loan and balance goes into savings)

Unsure of best route and aim to be on the right track as soon as possible.
Any advice?

Many thanks in advance


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## Slim (29 Feb 2012)

Plek Trum said:


> Credit Card balance: 2,060.
> Do not clear it each month.
> Pay minimum due of 102euro p/m - only knocks off interest
> (balance was previously 4060 euro at this monthly repayment. Paid 2,000 lump sum today)
> ...


 
Well done for getting a handle on your debts. If you can get a 0% CC then that would be cheaper if you pay off as much as possible before the 0% period runs out. After that the credit union should be able to advance you the remainder of the loan balance. Credit unions charge varying rates of interest, but it will be a lot cheaper than a credit card. Good luck.


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## Mrs Vimes (29 Feb 2012)

Use some of your credit union savings to pay off the credit card. It is insane having a balance on your credit card and having almost 3 times that amount in savings.

Or, set your savings against your loan, put the remaining c. 800 against the credit card and then divert the 130 + 102 per month to credit card and have rid of it in about 6 months.



Slim said:


> Credit unions charge varying rates of interest, but it will be a lot cheaper than a credit card. Good luck.



At the moment the OP is paying interest on his credit union loan. His balance in the credit union is Credit of about 800 euro. I don't know of any credit cards that charge interest on credit balances.


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## niceoneted (29 Feb 2012)

Firstly I would apply for a 0% CC and aim to pay half it off in the time you will have it.
Once you find out whether you are successful or not in getting it it would lead to the next decision. If you get it, I would keep repayments as is for the 0% period. 
I would then get the credit union to clear your loan and start from scrath with your 130 euro a week savings. By the time the 0% period is up you will have plenty in your savings to clear the remainder of the CC. 
If you are unsuccessful in getting the 0% CC, I would get the CU to give you 2k from your savings to clear the CC, do not top up the loan.


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## Plek Trum (1 Mar 2012)

Thanks a lot guys - I had opinions similar to your own but ws unsure of which route to take.  Will get application forms today and get moving - the sooner I have this off my back the better.  I know I'm fortunate with such small sums but the sooner its gone the more peace of mind I'll have.  Many thanks!


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