I just can't seem to clear my card debt

Q After a mad few years I ran up some very large credit card bills and they seem to be hanging around forever.

I earn enough to pay them but was wondering if it would benefit me to take out a personal loan to settle the debt or whether I should carry on as normal. I spotted a deal for an interest-free rate until next August, have transferred the balance of one of my cards and am aiming to pay double the minimum payment each month to clear it before the interest starts.

Unfortunately I have another very large bill which is currently costing me ?200 a month, around half of which is in interest and I am not sure whether to search for another deal or go for a loan? I no longer use my credit cards unless it is an emergency so my aim is to just get rid of the outstanding balance as soon as I can so that I can save instead of paying off old debt.

MB

A Recent tragic stories in the press have highlighted just how dangerous it can be to get caught in the credit card trap. Switching from card to card to take advantage of special deals is not the answer. Special deals come with a price and eventually you just get deeper and deeper into debt trying to meet minimum payments.

Credit cards are one of the most expensive ways of borrowing, so virtually any alternative is preferable. It should be worth your while to have a word with your bank manager to negotiate a personal loan sufficient to pay off all your credit card debt. Be careful, however, because these days banks are more interested in selling you commission-earning products, like insurance policies, than providing a proper service.

If you own a property, you might look at a mortgage since that is usually the cheapest way of borrowing, although of course your ownership of the house could be put at risk if you fail to maintain the proper level of agreed repayments - hence avoid the widely advertised finance companies who promise to solve your debt problems.

Banks do charge outrageously high rates for unsecured personal loans, but they will still be well below the astronomical credit card rates. Well done on taking the first step of no longer using your credit cards, although it would be better if you disposed of them completely.