How do I do this?Loan,0%credit card,eggmoney?

gh123

Hi I'm planning to pay say £2000 off a £15,000 loan, getting this onto an egg money card and balance transferring it to a 0% cretit card.

Is this how it works? >

(1)I withdraw £2000 from egg and put it in my bank account.

(2) I pay this £2000 in an over payment to my loan(I'm allowed to make overpayments ok).

(3) I then apply for a 0% interest credit card and do a balance transfer to it from egg.

(4) So basically, I will then have wiped £2000 plus significant interest from my loan, reduced the repayment time for my loan by about 2 yrs I will now have 0 balance on egg, my normal bank account is back to normal and as long as I destroy the 0% balance transfer card, never use it for anything and pay the £2000 to them before the time is up I'll be ok.


OR - Can I make a loan overpayment directly from the egg money card then just do a balance transfer that way? Or are you not allowed to pay things like this with an egg money card?

Thanks - GH.

urg123

Hi GH

I think you need to think about two things before you start to BT.

Firstly, will egg money transfer to a bank account (I don't think Egg credit cards do)
Secondly. have you already been accpeted for a 0% card. I think you need to secure this first before you BT. It will also be easier to BT from the 0% card rather than two BTs as you will have to pay two sets of BT fees.

The BT link on this site is here: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Also have a look at the Stoozing calculator: Stoozing Calculator

You also need to ensure that you put a payment plan in place to make sure that you can repay the BT before it starts to charge fees.

Hope this is helpful.

URG