You need £3000. What do you do?
A number of options are available to you depending on what you need the money for i.e. if you need it for existing debt consolidation or to go out and buy something.
If you have outstanding balances on several credit cards, and want to make it easier to keep track of your debt and repayments, the obvious choice might be to take out a loan because they have lower APRs, right? But, this may not be the case.
Moneyback Bank currently offer the lowest typical APR on an unsecured loan at 6.7% subject to status. However, if you wish to borrow £3000 you will be repaying the loan at 7.8% APR (more about Typical APRs).
So, what other options are available? Another idea might be to transfer the balance(s) to ‘a life of balance’ credit card like the one offered by Barclays with an APR of 5.9%, which will stay the same until you have paid off the balance.
If you need the money to go out and buy something, a 0% purchases card might be the solution for you. These cards offer you a fixed period where no interest will be charged on the balance you owe. This would work best for you either if you knew you could pay off the balance within the fixed interest free period (normally ranging from 6-14 months) or are willing to reconsider your situation after the period ends or, otherwise, start paying interest on your balance.
