Paying Off My Loan With A Credit Card!!

kengriff

Hello their

I am looking for some help....in fact I am begging for someone to help me. I have a loan with the Halifax and I am getting fed up of making payments and basically it not reducing the loan.:mad:
I am thinking of getting a credit card with a long 0%, im looking for something with at least 9 months...any more would be great. I was looking at EGG or even BARCLAYCARD.
I am after some advice as I wish to get rid off this loan.

CAN SOMEONE HELP ME PLEASE!!!!!!!!!!!!!!! :j :T

Sting_2

I think the only way you can do this is as follows (although if anyone knows of another way I am sure they will add it.)

You will need to pay off your loan with a credit card cheque. These are awful things to use, you get charged a fee and interest is charged as soon as it is cashed. You will then need to (and pretty quickly too) transfer the outstanding balance from the credit card account to your new credit card with the longest interest free period for balance transfers.

Virgin credit card were offering 0% on balance transfers for 12 months so this is a card you might want to consider.

The improtant things to remember are that you will be charged to write the credit card cheque, I think this is around 2% (or £20 for every £1000 on your loan). You then need to transfer the balance to the new (possibly Virgin) credit card as soon as possible to avoid the interest building up on the old credit card.

And finally, make sure you have a suitable repayment plan in place to pay off the loan in the 12 months - or make sure you get another card to transfer the balance to at the end of the 12 months.

Good luck!

mountainofdebt

1) Always make the payments on time - if you don't Virgin will probably cancel your 0% deal

2) NEVER NEVER NEVER spend on it. Any payments you make will reduce the 0% balance first leaving the purchases to attract interest.

regularsaver1

What will you do after the 0% period? transfer to another 0%? -

beneficial if you pay a good chunk off during that 9months/year

mrcow

Sting wrote:

You will need to pay off your loan with a credit card cheque. These are awful things to use, you get charged a fee and interest is charged as soon as it is cashed.

Not with Marbles Credit Card. We wrote a CC Cheque to clear a Cahoot loan and it's now on 0% for 9 months.

The fee was £50 (2% of balance but capped at £50).