can i cut the cost of my loan?

moggy

i have a car loan of £4000 over 2 years(£193pm),do i get a new loan to pay off the existing one,or should i get a credit card on 0% and keep switching every 6 months, would this work,any suggestions most welcome,cheers,moggy

Magentasue

Don't know about the specifics of your car loan but in general, if you have a good credit history, regular income etc, tarting with 0% cards is certainly an option. You shouldn't spend on the cards and you must apply in time for a new one to make it truly interest free and check the small print to make sure it doesn't have a balance transfer fee.

Not sure which cards are best for paying off loans rather than straightforward card to card transfers but someone will be along to tell us!

grumbler

1. Read carefully T&C of your loan. You could face healthy penalties for paying it off early.

2. To pay off a loan you need a card with Super Balance Transfer option: What is a Super Balance Transfer?. The simplest way is to get Egg Money CC and some other CC(s) with 0% on BTs and no fee: REVENGE! Make Free Cash from Credit Cards (The Middle Route), http://www.stoozing.com/0fees.htm. Some cards offer 9 months 0% now.

3. Be prepared that swithching the debt after 6-9 months could be a problem. The more cards you have the more difficult is to get new one(s). Think about CCs wit low Life-Of-Balance interest rate: Best Balance Transfers (cut the cost of existing credit card debts) => Stable Relationships (no hassle cheap rates)

See also:
[font=Arial, Helvetica, sans-serif]Your Credit Rating[/font][font=Arial, Helvetica, sans-serif] , [/font]
[font=Arial, Helvetica, sans-serif]Should I cancel old credit cards?, [/font]
[font=Arial, Helvetica, sans-serif]Special Briefing: Didn’t get the credit limit you want – DON’T ‘screw them!’[/font]

Robert_Sterling_3

grumbler wrote:

1. Read carefully T&C of your loan. You could face healthy penalties for paying it off early.

Are these penalties better or worse than heavy penalties?

Magentasue

Robert_Sterling, your careful attention to spelling and grammar is a credit to you!

grumbler

Robert_Sterling wrote:

Are these penalties better or worse than heavy penalties?

healthy - Syn: considerable

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Part of Speech: adjective
Definition: considerable
Synonyms: apparent, ascertainable, clear-cut, definite, detectable, discernible, distinguishable, estimable, evident, good-sized, goodly, healthy, large, manifest, marked, material, measurable, noticeable, observable, obvious, perceivable, perceptible, plain, pronounced, recognizable, sensible, significant, sizable, substantial, tangible, visible

http://thesaurus.reference.com/search?q=healthy