Jul 26 2009, 12:00 PM
QUOTE(Seng_Kiat @ Jul 26 2009, 11:03 AM)
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?
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. 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?
QUOTE(lonelymyth @ Jul 26 2009, 11:08 AM)
You are wrong!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! lets email me and i will explain to you...lonelymyth@hotmail.com
Why wrong ?? Mind to explain it in public ?? Why need to be so secretive ?? QUOTE(roy918 @ Jul 26 2009, 11:28 AM)
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.
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.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.
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