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Advice Wanted - paying off credit card

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  • 06-10-2011 11:49am
    #1
    dafunk
    Registered Users Posts: 817 ✭✭✭


    So I've got 2500 on my credit card, I seem completely unable to pay it off because of the interest etc. I'm trying to figure out now what would be the best way to deal with it. The credit union will give me a loan at around 11 - 12 % that I can pay off over two years. The other option would be to transfer it to a 0% interest credit card but that will only last six months, can I keep moving it from cc to cc at 0% until I get it paid off? Also, what banks would be the best to go to for this would you think? Any advice appreciated.


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    #2
    fleet
    Registered Users Posts: 546 ✭✭✭fleet


    dafunk wrote: »
    So I've got 2500 on my credit card, I seem completely unable to pay it off because of the interest etc. I'm trying to figure out now what would be the best way to deal with it. The credit union will give me a loan at around 11 - 12 % that I can pay off over two years. The other option would be to transfer it to a 0% interest credit card but that will only last six months, can I keep moving it from cc to cc at 0% until I get it paid off? Also, what banks would be the best to go to for this would you think? Any advice appreciated.

    The interest on 2500 is "only" about a tenner a week even if the rate was 20%

    Although you would benefit from a move to 0 or even 11-12%, I would doubt that it's the interest that's preventing you clearing it.
    More likely you need to cut your spending further and start paying more per week off the card.


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    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    dafunk wrote: »
    So I've got 2500 on my credit card, I seem completely unable to pay it off because of the interest etc. I'm trying to figure out now what would be the best way to deal with it. The credit union will give me a loan at around 11 - 12 % that I can pay off over two years. The other option would be to transfer it to a 0% interest credit card but that will only last six months, can I keep moving it from cc to cc at 0% until I get it paid off? Also, what banks would be the best to go to for this would you think? Any advice appreciated.

    Thats a high rate from your CU. My CC is only one point higher.

    Obviously no harm getting onto 0% and start paying principal only. I would suggest this but have a plan for when the 0% expires to have it cleared in full or a lower rate loan to clear it in line otherwise you could have a big jump in the CC rate.

    DO you think you could clear it within 6 months?


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    #4
    cookie1977
    Registered Users Posts: 6,794 ✭✭✭cookie1977


    Also any new purchases on the credit card (if you're still making them) would be subject to the new credit card interest rate and not the 0%. Look at bonkers.ie for credit card comparisons


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    #5
    Dr. Dodger
    Registered Users Posts: 381 ✭✭Dr. Dodger


    Cut it up and cut down on your spending. Like previous posters have said, it's not the interest that's preventing you from paying it off. It's very hard to pay off a credit card at times, we've all been there but once you get into a routine of not using it and throwing money off, you'd be surprised how quickly you can do it. Requires a lot of discipline though.


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    #6
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Dr. Dodger wrote: »
    Cut it up and cut down on your spending. Like previous posters have said, it's not the interest that's preventing you from paying it off. It's very hard to pay off a credit card at times, we've all been there but once you get into a routine of not using it and throwing money off, you'd be surprised how quickly you can do it. Requires a lot of discipline though.

    A lower interest rate wouldnt do any harm in conjunction with an increased focus on paying it off.


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