Consolidating debt one credit card
Smart Search can help you work out what type of credit card is best suited to your needs and what your chances are of your application being accepted by the lender.
Importantly, Smart Search does not leave a mark on your credit file for prospective lenders to see, but it also isn’t a 100% guarantee that you’ll be approved for credit.
The interest rate on one card may be significantly higher than the others – and if the highest rate is on the card with the ,500 debt, you could be paying plenty each month just to cover the interest, let alone paying down the debt itself.
One option you have to consolidate your debts is to take out a single personal loan to pay off each credit card and any outstanding interest.
It’s during this time that your repayments stretch further as you’re not paying interest on your balance and can clear your debt sooner.
Instead of just having to make minimum repayments as you do on credit cards, you’ll have to make set repayments that cover both the loan amount and interest, which you know will end at a certain date.
You can choose to lock in your interest rate with a Fixed Rate Personal Loan, or enjoy the flexibility of making extra repayments and clearing your debt sooner with a Variable Rate Personal Loan.
The fee is usually a percentage of the amount you are looking to transfer.
For example, if you moved a balance of £1,000 to a new balance transfer card, and the balance transfer fee was 3%, you would be charged £30.