Q. I am thinking of going to my local credit union to take out a € 2,000 loan to pay off a couple of friends who loaned money to me before Christmas plus my credit card bill of € 1200..Over a two year period at 9.5% it is only € 45.91 per month but added to my rent of € 1,300 ( am sharing ) and another loan of € 254 per month ( for the car ) I am already beginning to feel the pinch. Any advice ? Thanks. Terry – Stillorgan Co Dublin
A. Taking a two year loan with your credit union Terry is going to do nothing for next Christmas – you will probably have the same costs. But you could transfer that credit card debt to one of 4 providers that allow balance transfers ( provided you have good credit history ) at 0% interest for up to 12 months ( An Post Money ). Ideally you should pay € 175 a month and at the end of the 12 months you have a credit card free of debt ! Your friends’ € 1,200 debt could also be negotiated to suit your pocket but you really want to have a relatively free hand in terms of commitment for next Christmas. Try saving in one of those Regular Saver accounts ( minimum € 100 and maximum € 1000 earning up to 2% interest – AIB Bank & Bank of Ireland have the best deals currently ) for the coming year… main holiday, Christmas, birthdays, anniversaries etc you KNOW you are going to spend money so why not save for it ? Planning would help and doing a budget essential ( email me for an easy to use monthly budget planner spread sheet ). You will have a happy new year when you are debt free.