Transfering personal loan balance to a 0% crdeit card.

leejac

Some advice please!!!

We took out a personal loan to buy a car from Lloyds TSB. This was done 15 months ago. The borrowing was £10,000 over 60 months at a rate of 6.9%. To date we have made 15 monthly payments, which leaves us roughly £8000 in the red with 45 months to go.

We were wondering, does anyone know a way to transfer the remaining £8,000 to one or more credit cards to make use of 0% balance transfer deals, or a low-rate life of balance deal. We have in the past been card tarts, and have no problem doing so again! The problem is that, unless we are missing something, there is no way to transfer the bank loan balance to the first credit card in the process. Having spoken to the lenders, they all tell us we cannot transfer from a bank loan to a credit card.

Anyone have any ideas how to get the initial transfer made to set us on our way?

mountainofdebt

I think the first thing you have to consider is how much of a penalty you would incur in finishing off the loan early.

If you have an egg card or any other card that allows you to make super balance transfers then the process is relatively easy. ........get a 0% card, make the trasnfer to the egg card and then transfer the positive balance to your bank account. Pay off the loan from your bank account.

galaxyone

Hi

I'm no expert, but I think it would be possible through a card like egg where you can do a super balance transfer (BT with a current account/overdraft). So you would need a high enough credit limit on egg, SBT £8000 to your current account, then use these funds to clear the personal loan, therby leaving you an £8000 debt on egg card at 0%. I think you would have to pay a £50 BT fee.

If this is not possible, sorry...someone will come along and correct me I hope!

BigDunc

Does anyone do fee-free super balance transfers these days?

YorkshireBoy

leejac wrote:

Anyone have any ideas how to get the initial transfer made to set us on our way?

Clicking 'Super BTs' in the blue box above your first post will get you started. Then, as you say, just balance transfer the debt around until paid off.

However, factor in the following...

• You may have an early settlement penalty on the loan.
• The size of your loan balance will be seen by credit card suppliers when they search your file, and may affect the limit they give you.
• You may need several cards to get sufficient credit to settle your loan.
• More and more cards are applying BT fees at 2% - some capped and some uncapped. Factor in £50 each time you change suppliers on a capped deal - more if uncapped.
• With credit card minimum payments at 2% or 3% of the balance, your monthly payment amount (compared to your current loan payments) may increase significantly.
• If you can't switch the balance at the end of a 0% deal, due to unemployment, sickness, too much available credit etc, you will drop on to 15.9% APR or higher - considerably more than your loan APR.