Thursday 3 October 2013

Loans to consolidate exitsing debts

Many people are often surprised at just how much money they can save by consolidating their current more expensive debts into one loan. We had one client who saved just over £1200 per month by moving their debts from expensive credit cards to a secured loan.

Often we find that clients get tempted by 0% balance transfer offers and purchase deals, and once the deal has expired are stick paying a higher standard varible rate of interest. The really effects those who then are unable to move to another deal and end up paying 18% APR ...

The Moneysupermarket webste has a good article on this called stoozing here.

Done correctly this means that you can borrow on credit cards and pay very little in interest. Be careful however of one off upfront fees. E.g. The virgin credit cards charges most customers a 5% fee to balance trasfer

2 comments:

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