Gettin rid of my car loan

acs_2

I owe around £4000 on a car, at the time i took out the loan, i didnt envisage buying another property.

anyway, cutting a long story short, i currently pay £200 a month for the car/loan repayments.

What i am wanting to do is basically stick that £4000 onto my mortgage and basically free up an extra £200 a month for other things. Ive now been advised that this may not be the best way of dealing with this.

Any advise on the best way to go about this?

Thanks in advance

PS. no smart remarks re "just sell the car" - not an option - i need it for getting to work.

GeorgeUK

Is your credit rating okay?

You may be able to get an early settlement figure for the loan and transfer it to a credit card. There are some 0% creditcards that allow money transfers as part of the promotion so you could transfer the money to your current account and use that to pay off the loan. Virgin do this so you may be able to have 16 months at 0% (4% transfer fee) and the minimum payment is 1% or £25.

acs_2

My credit rating is good, but surely putting it on a credit card will still see me paying a 3 figure sum every month/reducing it by a few quid....which i dont want to do. i want it out of the way as such.

GeorgeUK

If you put it on a Virgin Credit card, it is a 1% minimum payment so that would be about £40pm. This would hopefully allow you more time to get funds together to pay it off in full, but it depends on your priorities. Try using the snowball calculator to see how much interest you would be paying on top of the £4k to see which you would prefer.
http://www.whatsthecost.com/snowball.aspx