Transferring a Loan to a CC

andyj2

Hi guys,

I've currently got a £5k graduate loan with Barclays, on which I am being charged about £30 a month interest.

The loan has 18months left to run, which equates to about £500 in interest (roughly)

My thoughts were that if I could somehow transfer this onto a 0% BT CC, then I would save myself about £500, which equals 2 monthly payments.

The only problem is that all the CC's I've looked at, will not let me do a BT into my Current Account, which I could then use to pay off the loan.

Does anyone know a way around this?

I haven't got any other CC's as I managed to close them all down by selling my car 6months ago!!

Any advice greatly appreciated.

Cheers,
Andy

Rafter

Andy,

I think Egg and MBNA still offer this feature. You will pay a balance transfer fee though which will wipe out some of your interest savings.

If you still have an old egg card account open you could use this to move the money by doing a balance transfer from your new card to Egg then transfering from Egg to your current account.

Another alternative is to get a long 0% on purchases card and then put all your everyday spend on it and pay the minimum balance. The cash you are saving can then be put aside until you have enough to pay off your graduate loan. Might take a bit of time though.

The rate on your loan doesn't look too bad and remember as your loan goes down, so does your interest so you probably won't save £500 anyway.

Good luck.

R.

andyj2

Cheers for they reply rafter

With it being a 'Graduate Loan' the APR is quite low anyway.

I used to have an Egg card, but closed it when I sold my car, along with my MBNA and my Barclaycard!

Managed to clear off over £6k in debt by doing it!

All that's left to pay off is my Graduate Loan, and also my student loan. The student loan is rediculously low APR (something like 2.9%) so it actually pays me not to pay it off!!!

Andy