Hi guys,

Let start a discussion about apply for personal loan to pay cc debt. Is it a good move if we apply for personal loan (interest rate about 6% p.a) to pay off credit card debt (1.5% p.m = 18% p.a)?

from my point of view, it is a good move, we save about 12% p.a. am I correct?

You are wrong!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! lets email me and i will explain to you...lonelymyth@hotmail.com

Personal loan is more expensive/or about the same with credit card.
Credit card is charging 1.5% on the amount you owe but personal loan still charging 6% p.a. for the amount you loan even you paid off half of it.
Stop using credit card if you couldn't pay up.

Your are partially right. Because you did not give the full detail of the 6% p.a. rate. whether it's a effective rate or otherwise. Another reason is that there is a possibility to accumulate credit card debts again in the future after the full settlement.



Why wrong ?? Mind to explain it in public ?? Why need to be so secretive ??



I reckon you are talking about 6% p.a. flat right ? Well....even if it is 6% p.a.flat, the effective rate is still below 10%. Thus, using a 6% p.a flat personal loan to settle a 1.5% p.m monthly rest credit card loan is not a wrong way to reduce the monthly interest cost.

Where would you find a 6% personal loan?


This post has been edited by wodenus: Jul 26 2009, 01:47 PM

I wonder that too.. .

Personally from the parents, with no interest penalty.

18% per year is just nominal rate, means u actually have to pay more than that, the actual effective rate is 19.56%

This post has been edited by Y.K.: Jul 26 2009, 06:53 PM

Dude, how do you comparing a flat rate to reducing balance rate?
They are totally out.

oh thanks for pointing out, my fault

This post has been edited by Y.K.: Jul 26 2009, 06:53 PM

first thing first correct ur personal perspective abt money
no point get loan pay off credit card which will allow u to use ur credit card again
this will end with 2 loan, thereafter, borrow again to pay personal loan and credit card, will never end my friend.
how low the interest rate does not really matter at all if u think of it

Yes, if interest charged is based on reducing balance. However, there's another option at lower rate, how about asking for balance transfer with PBB where their rate is only 1.5% and 2.5% upfront for 6 and 12 months plan respectively.

HLB staff do once a while call me or ask me when I call CC CS, they always say HLB offering me Personal Loan at 0.5% interest per month for 6 months which is actually their balance transfer program.

CC "balance transfer plan" for 6 months plan where the money is transferred into your savings or current account. Rate is 0.5% a month and based on daily outstanding balance. Only catch is that one cannot settle in full before the 6 months end or else there'e a penalty; guess if want to pay back loan early got to make sure got enough balance so that minimum payment does not settle the loan in full.

http://www.hlb.com.my/pfs/cc/ccbt.jsp?flag=ccbt

sometime ago, another member at CC Thread V6 said he had outstanding CC balance at HLB, to reduce the interest rate charged by HLB CC, he ask HLB for "balance transfer" into his bank account and then use this said money to pay his outstanding CC balance with HLB.

This post has been edited by Gen-X: Jul 26 2009, 09:53 PM

Better dont take up personal loan to pay off ur credit card debt.Do balance transfer is much more better.Maybank is giving the lowest rate now.Check it out at MBB branch.

clever way. Last time i changed to use CIMB credit card and they offer me 6 months zero interest for balance transfer. I cleared up the debts in 6 month virtually with 0 interest. a small charges apply but still save some interest

i dunno about the 6%pa personal loan, but MBB did offer their card members "0%" interest loan (if u pay within 6 months), or so called ezy-cheque. The only catch is there is a 3.88% "admin fees" when you accept the loan...

That work out to be 7.76% p.a effectively. The bank still untung.

although it is not a good solution, but it is still the best solution (temporaly) to stop hearing the fon calls from bank pressuring u to settle. otherwise u have to borrow $ from ur fren to settle the credit card.

sorry for bringing up old post.

to settle ur credit card outstanding (debt), go do BT.
it is far cheaper than loan.

cimb is free for 6 months, 1% for 12 months.
maybank is free for 12 months.
amex also free for 12 months.
pbb free for 6 months, 1.5% for 12 months, 5% for 24 months.

for longer period, go to eonbank, they have 36 months (10.99%) and 48 months (14.99%).

refer http://forum.lowyat.net/topic/1123346 for more