Consolidation Loan VS Balance Transfer onto Credit Card

[Kayla]

What do you think would be best?

Interest free balance transfer for 4months with BankWest, not having to pay a cent of interest on my debt (its over 5k)

VERSUS

Getting a consolidation loan with Citibank at a lifetime rate of 2.3%?

I worry that if I can't pay my debt back within 4months that I will lose money with BankWests rate of around 10%.

I am thinking the best option is the low 2.3% for life.

What do you all think?

[lisablay]

Hey Kayla! I half wrote out a post and noticed this is a bit of an old string. How come nobody replied to you!? I hope

everything got sorted out for you.. what did you decide to do? Has it worked out so far?

I think I am going to check out Citibank consolidation loans, 2.3% sounds like a great rate! Think I could use a consolidation loan instead of a car loan to buy a car? I was using one of those comparison sites, www.mozo.com.au, looking for car loans. It gave lots of options but the rates were definitely higher than 2.3%. Anyone know a better site to use? Or maybe I’m just dreaming hoping for a better rate….

I have a feeling I might be talking to myself here… oh well J



Lisa

[ClaireBear]

I'm here!

We are slowly getting more people!!

I had a similar situation, this is how I tackled it:

$15K debt

I got a balance transfer at 2.3% or something similar for 18 months with Citibank for $5K of it.

I then got a balance transfer at 0% for 6 months with Bankwest for $10K.

I have nearly paid off all of the $10K debt with Bankwest as I want that card to be gone before Christmas.

The Citibank card is only $5K but once the time period ends, the rate is something ridiculous like 18%.

The trick is to segment and save on interest - paying as much money off one card as possible. None of this minimum payment stuff!