Pay off Staff personal loan with credit card?

chivers1977

I have been thinking about this for a while. I have a staff personal loan at about £5k remaining 6.2% payments £89 per month as have stupid 5 yr term remaining. I can overpay as much as I want but am not in the position to do so as have a baby and am having to find childcare each month. I have used the snowball calculator and it would save me £780 in interest if I managed to have the loan on 0% for the whole term. At the moment, I just have an hsbc CC with zero balance. I understand that I would need to do a superbalance transfer but have got a bit stuck as to whether it is really a good idea and the mechanics of actually how to do it.

I have reduced my outgoings using this site since feb and am only cooking OS now, am paying childcare using childcare vouchers, have a 12 month free line rental mobile deal etc etc. I have sold absolutely loads and am still going with the selling but this is going towards spending money for a holiday in 4 wks that my parents have paid for. we were meant to be staying with them in france but my dad has hurt himself and as they felt guilty that we couldn't have a holiday, they gave us £400 towards a hol. we also got £3500 back in charges which cleared the OD and left us with £1000 savings, which whilst I know is earning less than the loan rate, is more an emergency fund to stop the dipping into cards that we used to do.

I am off to work now but will be back later. If you guys think it would be helpful for me to post an SOA I will.......

Thanks in advance

Molanole

Hi there - it looks like you're doing fantastically well with cutting back but it might be a good idea to post an SOA just in case there's something you've not thought of already (not that I would spot it but one of the regulars on here would!)

I don't think you say whether your HSBC credit card is actually a 0% one and if so, how long the 0% will last but I'm sure someone soon will be able to advise you on how to go about things. Just wanted to say hello and good luck really!

chivers1977

Sorry the hsbc isn't 0% so would need to open a new one, which is something I am a bit scared of, as bad things USED to happen with CCs!!!!

lynzpower

Do you have any CCs then at the mo Chivers?

What you COULD try, which I have done before, is say to HSBC, oh i was wanting to do a balance transfer to your card, but Ive been offered a 0% by the coop/any old bank but wondered if you could match it before I go with them." In which case, if they agree, you could have 0% for a while without having to apply!

Et voila!

save-alot

I would be very wary of doing this, the rate of the loan is not overly high compared to the credit card after the 0% rate ends, you will be taking the gamble of being able to get another 0% card.

Also need to consider that almost all cards now charge a 2% fee on transfers and this would equate to half your interest over a year on cards that have only 9 mths 0%.

CLAPTON

a typical 0% BT lasts for 6 to 9 months which means you wiil then either have to find a new 0% BT card or get stung with the 'normal' APR typically 15 -25%. As there is no certainty that you will get a new 0% rate i would say its a bad idea. your current rate at 6.2% isn't too bad and you say you can overpay so i'ld concentrate on just overpaying by as much as possible.

(by the way i assume by overpaying that you are then charged interest only on the declining balance.)

chivers1977

thank you very much for all your responses. That was why I was umming and aahing. It seems so tempting to have it on 0% but as you say there is no guarantee of getting another CC at the end of the 0%. Yep if I overpay, I only get charged interest on the remainder. Just have to wait until next years bonus.....that it unless we have all wiped out the banks bonuses by claiming charges LOL:rotfl: :rotfl:

beanielou

Yeah, would leave it where it is I think.
Great news on clearing your other debt & hope you have a fantastic holiday when it comes.Enjoy.
Think it is a great boost for any of us to have savings as it takes away the fear.