Loan to pay credit card debt?
A reader from Liverpool is unsure about whether she should pay off her credit card with a personal loan.
Jo Crosse, Halifax and Bank of Scotland personal loans expert, tackles the problem.
Heather from Liverpool asks:
Does it make sense to take out a loan to pay off my credit card if the interest rate on the loan is less than the one on my card?
Jo replies:
Yes, by doing this you will stop paying the higher rate of interest on your card, and have a structured repayment plan to keep to with your loan, thus saving you money in the long term and clearing your borrowings faster.
What you need to be wary of though are any charges or fees attached to setting up the loan or settling it early, so make sure you read the small print.
If you have a question for Jo, go to the myfinances.co.uk Ask the Loans Expert section
Or for more information on your loans options go to personal loans at Halifax
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