facebookIs it better to get a loan from the bank to pay off the credit card debt knowing loan interest rate is lower than credit card interest rate? - Seedly

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Anonymous

10 Jun 2021

Credit Cards

Is it better to get a loan from the bank to pay off the credit card debt knowing loan interest rate is lower than credit card interest rate?

Discussion (9)

What are your thoughts?

V

Victor

10 Jun 2021

Financial Service Consultant at AIA

It will be the lesser of the 2 evils

佩珊

佩珊

07 Jun 2019

Sport N Social at Seletar Country Club

If Foreigner get any easy loan at Singapore

View 1 replies

Brandan Chen

Brandan Chen

07 Jun 2019

Financial Planner at Manulife Singapore

You may consider balance transfer. It's a scheme whereby they charge 0% interest for up to 6 months. This may give you some leeway if you are able to pay off the debt in about 6 months

View 1 replies

On theory, it sounds like a sound plan. Clear the higher interest loan then clear the lower interest loan.

In reality, nah. Getting more loans to pay off loans is a bad idea. Talk to the bank, get a debt consolidation plan and pay it off before getting new cards or loans.

Fundamentally, you have to watch your spending habits. Spend within your means.

Both are equally bad, it's a vicious cycle. So cut the credit cards and work on a repayment with the...

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