Thread: Who's good at Math? - credit card calculations.

I had a similar dilemma a few years ago.

After getting financial advice from a friendly bank manager - it worked out far cheaper to take out a personal loan for the total value of the debt of all credit cards, used the loan to pay off the credit cards immediately and then just paid off the single personal loan.

Personal loan was at much lower interest rate than any of the credit cards.

I did think of that, but for all the faffing around and fees, where does that come into the calculation?

As it is, I can pay them all off by Feb, and I'm bloody sick of banks getting me to jump through hoops for everything.

After these buggers are gone, I've only got the Mortgages to worry about, which come in a distant second to these.

I know it doesn't answer your question baci, but..

A bank other than the one/s the cards are with will often offer an interest-free period on balance transfers.

If you can arrange one of these you can effectively amalgamate the balances and then pay them off during the interest-free period and/or use Bmkal's method on the remaining balance at the end of the interest-free period.

Originally Posted by BMKal

I had a similar dilemma a few years ago.

After getting financial advice from a friendly bank manager - it worked out far cheaper to take out a personal loan for the total value of the debt of all credit cards, used the loan to pay off the credit cards immediately and then just paid off the single personal loan.

Personal loan was at much lower interest rate than any of the credit cards.

What he said.

That's good advice.

Ok, looks like everyone is on the same page here apart from me. I might have to bite the bullet and go through all the crap they will want to get a loan.

Sooooo don't want to do that though, but you are all probably right...

Another option might be to ask your bank if you have a line of credit available on your mortgage. We bought SWMBO's car this way. Virtually nothing in fees as the mortgage was already established - and the interest rate on the mortgage was way lower than hire purchase on a car.

Just a thought .........

I'm like you - I cut up all credit cards years ago. Wasn't me that had a problem with them, but SWMBO just couldn't help herself.

These days, if we want anything and haven't got the cash - we wait until the money is there. Haven't looked back since getting rid of the plastic - and have actually managed to save a bit.

I'd be tempted to consolidate onto an interest free card for now. Then when you get to the end of the interest free intro period then get the loan. Every cent helps!

The short answer to your original question would be to pay as much above the minimum as possible on each card each month, so the better of your original options would be paying roughly equal amounts off each.