Use balance transfer to pay off loan?

Bogden

I recently took out a personal loan at 8.1% and have made a couple of payments so far. Yesterday I received some balance transfer cheques for my Natwest credit card, and one of the offers is 0% interest until June 2010 with no fee. Would it be worthwhile paying off my loan with the cheque, then taking out a new loan next June to pay off the card?

cooltt

Yes i've done that before but make sure you're in a pisition to get the loan next year or it could go horribly wrong and of course you can't use that card until the balance is paid off.

Bogden

Thanks for the reply. The settlement figure they have given me is £200 more than I borrowed in the first place so I'm not sure if it's still worth doing.

Hughesy84

You need to work it out mate.

Whats the length of the current loan & amount?

If the % fee for transferring the loan over isnt too big and doesnt cost too much - it might be worth considering it and paying off as much as you can between now and next June.

Iv done it before. I had several cards that had high interest & 1 shiny new one with 0% for 12 months. I took out a loan to pay off the original cards (included store cards with 29% interest) and then paid the loan off via a balance transfer.

It cut the massive interest being added each month and allowed me to clear it all easily.

Bogden

Thanks

The other thing is that I did not spend all the money on the car so the rest is just sitting in an account. The figures are:

Loan principal: £17k
Duration: 48 months at £420

Settlement figure is £17180

I still have £7500 of the loan in my account, and the maximum I can get on the balance transfer is £9500, which works out quite nicely. There is no balance transfer fee, surprisingly!

dangold

how long does transfer from sainsbury bank takes to reflect in your Halifax account

Bogden

In my case they sent a cheque so it took 3 working days to clear. They don't offer instant CHAPS transfers.

[Deleted User]

Bogden wrote: »

I recently took out a personal loan at 8.1% and have made a couple of payments so far. Yesterday I received some balance transfer cheques for my Natwest credit card, and one of the offers is 0% interest until June 2010 with no fee. Would it be worthwhile paying off my loan with the cheque, then taking out a new loan next June to pay off the card?

Remember if you miss a c/c payment or exceed your limit any 0% deal is immediately revoked