Taking a loan to clear a debt

Every now and then we have a little daydream about what we’d like the future to look like. Maybe we’d live somewhere more rural, I’d write a book, Laurence would start his own business and get out from spending his days behind a desk. We talk about bucket list items like treks and trips.

But really, as unsexy as it sounds, nothing beats the dream of one day being completely debt-free. We probably have the same financial ties as most people but wouldn’t it be glorious to one day wave them goodbye?

After my maternity allowance finished with Talitha, I wasn’t working much and we used a credit card to help us through that financially tricky time. But once we were in a better spot, the expense of repaying our credit card debt was eating away any possibility of relief.

So we took out a personal loan to repay it, finding that it could be repaid at a much lower rate. Then we froze the credit card in a block of ice in the freezer – something I’ve mentioned here before, much to everyone’s amusement. Certainly, we’d never have touched a payday loan as that would have only added to the stress of the situation.

Have you ever used a personal loan to get you out of a tight spot? How would you use a loan?

In association with TSB


5 Comments

  1. August 31, 2015 / 8:09 pm

    I have taken a loan out to clear other debts but I ended up in a worse position after I lost my job due to bad health and ppi didnt cover that condition
    angela hamilton recently posted..A Daily Battle

  2. August 31, 2015 / 10:37 pm

    I’ve definitely looked into getting a personal loan to cover a credit card but found all I was offered had even worse interest rates than the card itself. I’m assuming it’s because I don’t have much credit history.
    Laura recently posted..Top 5 Apps for Editing Photos

  3. September 1, 2015 / 8:33 am

    I’ve never taken out a personal loan to clear a debt, but it sounds like a sensible thing to do if the interest rate is lower than the original debt.
    Mums do travel recently posted..How to visit Parma

  4. September 6, 2015 / 7:18 pm

    I do love the idea of freezing a credit card!!
    Emma recently posted..Summer snaps

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