What is the best way to transfer loan balance?

bubbaegg

I want to get all my debts paid off as quickly as possible, so I decided to cancel the PPI on my loan to bring the cost of it down (was almost £2000 on top of a £6000 loan), I thought that I would just cancel it and my payments would come down etc. but what happened is my bank cancelled my existing loan and said they will set up another loan for me minus the PPI, the loan is still over the same term (33 months) and only works out £17 a month cheaper (they did not offer me any other option). Ideally I would rather pay slightly more a month, at a lower interest rate so I can pay it off quicker - should I go ahead and sign the papers for my "new" loan, or would it be better to transfer the balance onto a 0% credit card or get a loan out with a diff provider. Can anyone advise????

CLAPTON

a few facts would help

how much was the loan for
how much the PPI
the APR
the term
the monthly payment
how many payment you have made
the same details for the new loan

bubbaegg

Originally the loan was for 7,500.00 over 59 months, the PPI worked out as a loan on top for £1,880.04 all at a rate of 9.70% APR. My monthly payments were £200.55 and I have been paying this since Jun 07 so 25 payments have been made. The details of the new loan are: The amount is £5317.46 (so original loan minus the PPI), monthly repayments £183.78 over 33 months at a rate of 9.9% APR. Wow! when you look at it written down it looks really bad! that works out that a £7,500.00 loan will end up costing me nearly double! Any ideas on my next step? Thanks

CLAPTON

the APR seems reasonable so unless you can get a better deal elsewhere then best to take that

however, the 5317 seems very high to me; I would have expected something under 5000; did they explain where the figure came from?

have you considered reclaiming all the PPI on the grounds of mis-selling?

bubbaegg

That's what I thought, seeing as I have paid £5k off already, I was expecting it to be a lot less than £5000. I wouldn't know where to begin to prove I was mis-sold the PPI. So you don't think I should switch it elsewhere? Do you know if you can transfer loan balances to 0% credit cards?

CLAPTON

best to read the threads on reclaiming PPI

You can't BT it as such; however some cards e.g. MBNA allow you to BT to your current a/c from where you can pay the loan off. That's assuming you get a sufficient credit limit and can pay off before the 0% runs out.