Using CC to pay off loan?

djwolf

I've read up on here about the possibility of using a credit card to do a 'super balance transfer' into a bank account which can then be used to pay off a loan balance. I currently owe £9450 on a personal loan (£1450 is interest) and have 4 years left on the term. The settlement figure however, is around £8000. I'm assuming that I'll be considerably better off by using a 0% credit card to settle the loan early and avoid the high interest costs.

Just want to know:
- Is it possible to get such a credit card with a starting limit of £8000? If not, could I go for 2 cards with a limit of £4000 each?
- What is the usual fee for the 'super balance transfer'?
- Is there a 0% interest rate on the balance for a set period like other cards?

Thanks.

Tixy

http://www.stoozing.com/sbt.php
List of SBT cards, including fees and 0% periods.
£8000 is high for a new card, especially considering you already have at least £9.5k debt.
What other debts do you have? What other available credit (whether used or not). How do these compare to your salary? What is your credit rating/history like?

djwolf

Yeah thought it was a bit high. I just have one 0% credit card with a limit of £3000 and a balance of about £1150 left to pay. No other debts. I think my credit rating is quite good. Salary is reasonable, just below national average.

Will check out the different cards. Thanks.

Tixy

Usually its harder to get credit above 50% of your annual income, if you have £12450 already and want an extra £8,000 then you would be looking at total exposure of over £20k, you are unlikely to get this unless you have a salary of £40k or so.

CaronG_2

Hi there, just read the previous posts and I need a bit of advice too.

I stupidly agreed to help out a friend (ex) last year with a course which required a guarantor. The expectation was that once the person completed the course they would start paying off the cost/loan via payment book. Unfortunately this did not happen and came to my attention only recently.

The person claimed they cancelled the course but have nothing in writing and failed to inform at the time they had done this. I've now come to terms that I will not see the proof of cancellation or the money.

The finance company have now confirmed that they need full payment of £3.688 (no interest) by 4th March 2010 or to be paid in instalments at £189.12 per month until the amount including interest is paid off.

I'm in bits and don't know whether its best to approach my bank for a loan. I was contemplating transferring the loan but not sure if this is possible. Was also thinking about paying on my credit card then transferring to MBNA but my current limit is only £3,000.

This'll teach me to help a friend out again!!!

Any suggestions are welcomed.

Thanks

C

Tixy

Hi

I assume you did actually sign some paperwork where you agreed to be guarantor?

Before commiting to any credit find out what APR they would charge (so you can compare to any loans you are offered).

Any chance you are going to get your 'friend' to pay any of this back to you? I wonder whether the finance company would be open to negotiating on the amount you have to pay? whether if you told them you would pay £3k would they accept that in full & final settlement?

They may be chasing the 'friend' as well for the money - they will go after whoever pays easiest - if you know their address and the finance company does not you could pass on their details. Whatever make sure you don't both pay!

Might even be worth getting someone legally minded to look at the guarantee paperwork to see if you can be held liable - probably it is okay but sometimes (certainly with rent guarantees) the paperwork can be argued against I believe.

CaronG_2

Thanx Tixy

I can only try

C