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Silly question.Loan/CCard
Greenbanana_2
Posts: 12 Forumite
in Credit cards
Hello, relative newbie with very little knowledge of Loans / Credit Cards etc so please be kind!!
I was discussing with a friend her loan of £7000 , of which she has paid approx half so has £3500 left. I dont know the figures but we were discussing the fact she is paying a fair bit of interest.This is my question and it may be silly but just wanted to be able to offer her a better option....
I see the Virgin 0% for balance transfers for 16 month info on the MSE Home page.
Could she transefer this loan to this card, so effectively paying no interest as the rate she is paying will mean her debt is paid off before the 16 months. Or would she have to take another credit card out to pay this loan THEN transfer it to Virgin so it was a Balance Transfer. Or is this nonsense!
Many thanks
I was discussing with a friend her loan of £7000 , of which she has paid approx half so has £3500 left. I dont know the figures but we were discussing the fact she is paying a fair bit of interest.This is my question and it may be silly but just wanted to be able to offer her a better option....
I see the Virgin 0% for balance transfers for 16 month info on the MSE Home page.
Could she transefer this loan to this card, so effectively paying no interest as the rate she is paying will mean her debt is paid off before the 16 months. Or would she have to take another credit card out to pay this loan THEN transfer it to Virgin so it was a Balance Transfer. Or is this nonsense!
Many thanks
0
Comments
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She could do a super balance transfer, move the money into her current account and then use it to pay off the loan (she would then be charged the money transfer fee which is a bit higher than the normal BT fee). A normal BT can only be used to pay off another card.
(Before she does anything do just check the agreement to ensure that she will save money, some loans charge all the interest up front so that even if she repays part way through she still pays all the interest- She can phone and ask for a settlement figure and compare that to the amount of repayments outstanding.)A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Ok thanks very much for your help, very useful. I will inform her .0
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She could do a super balance transfer, move the money into her current account and then use it to pay off the loan (she would then be charged the money transfer fee which is a bit higher than the normal BT fee). A normal BT can only be used to pay off another card.
(Before she does anything do just check the agreement to ensure that she will save money, some loans charge all the interest up front so that even if she repays part way through she still pays all the interest- She can phone and ask for a settlement figure and compare that to the amount of repayments outstanding.)
No loans charge all the interest up front0
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