personal loans

[Timo3]

Hi guys,

I am looking to get a loan shortly to pay off debts off 12000 that have accumulated for various reasons but principally the debt is on my credit card.
I am self employed and I am now in profit. However I have 9000approx in 2 savings plans (5000 and 4000 respectively) which i would like to maintain (well,certanly keep the larger one going anyway).

Which financial institution offers the best loan rate in my circumstances?.I am a bank of Ireland customer and would like the repayments to be spread over a 5/6 year period.

Cheers,
Tim

 

[irishpancake]

Hi guys,

I am looking to get a loan shortly to pay off debts off 12000 that have accumulated for various reasons but principally the debt is on my credit card.
I am self employed and I am now in profit. However I have 9000approx in 2 savings plans (5000 and 4000 respectively) which i would like to maintain (well,certanly keep the larger one going anyway).

Which financial institution offers the best loan rate in my circumstances?.I am a bank of Ireland customer and would like the repayments to be spread over a 5/6 year period.

Cheers,
Tim

Hi Tim

Firstly, your CC debt could be costing you anything from 9.5% to 18%.

Your savings plans are unlikely to be returning anything much in excess of 5%-7%.

So, look at from a practical point of view, you should use your savings to eat into your debt substantially, if not totally.

Funny thing, is while you were accumulating savings of €9k, you were simultaneously borrowing €12k at exorbitant rates from your CC company

How silly is that!!

You could use a large proportion of your savings to clear at least 50% of your CC debt, then transfer to rest to a 0% CC deal, for up to 9 months.

Then, for the next nine months, use all the money you can afford to pay down the remaining debt over the 9 month 0% period, using the money you would have been saving and paying off existing CC debt.

Then you should be debt-free, and you could really start saving

 

[Timo3]

Thanks for the advice...However how do I transfer to my cc debt to a cc deal?

 

[irishpancake]

Thanks for the advice...However how do I transfer to my cc debt to a cc deal?

There is a thread in the Best Buys, which is up-to-date, thanks to CCOVICH.

There you will find the current deals for CC Balance Transfers, ranging from 9 months to 5 months 0% for Balance transfers.

Obviously, all these deals have T&C's attached, and may not be available to everyone, depending on their financial status, etc.