Cheapest and most sensible way to borrow sub £7.5K cash?

[mholt1995]

Currently firming up my financial planning for the rest of the year which at a high level looks something like this (in this order by time):

- Finish my lease early (to be done by end of July)
- Clear off my credit cards and close the lower limit one as it's 0% expires in December (to be done by end of October)
- Enjoy the Z4 for a couple more months until the weather gets naff, get shot at end of November

By start of November my situation will be as follows

- about £3k in premium bonds + nothing yet invested into LISA in 19/20 FY
- no debt
- imminently without a car

At which point my plans for the rest of the year will become
- purchase a car outright, private sale (budget of £3.5k, probably end up spending less in all likelihood)
- put the first half of my annual £4k allowance into my LISA for 19/20, so £2k

Obviously there's a discrepancy in the numbers there so I'll need a bit of help to get me into the car. Ideally I'd pay at a rate of max £300 pm as I'm quite accustomed to that from my leasing and for no longer than 12 months which has brought my budget to where it is.

So - if I was to borrow the £3500, what would be the most sensible solution? Keeping the payments in the region of £300pm

- Withdraw £3500 on a 0% credit card (can secure the credit for this but have heard this isn't great for credit report)
- Take the £3500 out on a ~10% 12 month loan as seems to be the standard for <£5k (3.6%) and <£7.5k (2.9%) loans
- Take out £5k on a 18 months at 3.6% - hide the remainder away somewhere and pay it back after 12 months (+58 days interest)
- Take out £7.5k on a 24 months at 2.9% - hide the remainder away somewhere and pay it back after 12 months

My numbers make it...

1) £291 pm for 12 months, then done (paying £0 interest)
2) £307pm for 12 months, then done (paying £195 interest)
3) £~285pm for 12 months, paying off £~3,425, then settle (£1,705 - brings total interest paid to £130)
4) £~322 for 12 months, paying off £3,864, then settle (£3,822 - brings total interest paid to £186 according to my numbers but that can't be right surely?)

Looking to do minimal damage to my overall credit profile and of course looking for the cheapest solution - are early settlements looked on unfavourably? Option 3 sounds like the cheapest and probably the one to go for? Just after some back-up advice really

[bennno]

Sell your Z4 now ,or keep it till Spring, you will get lowest price of all in November.....

[Mr MXT]

If I’m reading it right - 0% deals usually exclude cash withdrawals.

[mholt1995]

bennno said:

Sell your Z4 now ,or keep it till Spring, you will get lowest price of all in November.....

I don't own it - I'm renting it off a friend for a good rate so will be giving it back to him as opposed to selling it.

Mr MXT said:

If I’m reading it right - 0% deals usually exclude cash withdrawals.

Have just checked and you're right - it's a 3% fee on top of the withdrawal amount.

[I 8 a 4RE]

What's the cheapest way to get debt ... because I want to get out of debt ... what?

How's about you give back the Z4 now, save up for a £1000 car. There should be ample suggestions in the Weekly Shed of the Week story on PH.