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💡 Credit Card vs Credit Union Loan: What’s the Real Cost of £15,000?

If you’re carrying a balance of £15,000 on your credit card, you might think the minimum payment is the easiest way to manage it. But here’s the reality: it could cost you more than double what you borrowed.

Let’s break it down.

📊 The Comparison:

• Credit Union Loan

  • £15,000 over 5 years at 9.9% APR

  • Fixed monthly payment: approx. £317.97

  • Total repaid: £19,078

  • Interest paid: £4,078

  • You’re debt-free in 60 months

• Credit Card Minimum Payments (average UK rate 23.9% APR)

  • Starting at about £450/month and decreasing

  • Total repaid: over £44,000

  • Interest paid: nearly £29,000

  • Still paying for over 35 years

🎯 The Bottom Line:

Paying the minimum might feel manageable now, but it traps you in long-term debt. A credit union loan gives you a clear repayment plan, a lower rate, and an end date you can count on.

✨ Take Control:

If you're carrying a balance and feel stuck, talk to us. A consolidation loan with First Rate Credit Union could help you pay less, stress less, and finally see the light at the end of the tunnel.