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Cutting the cost of existing loans

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Don__2
Don__2 Posts: 12 Forumite
Hi all,

I've been quietly reading and learning from this site for the last 5 months. Thus far I have got control of my debt problems in the short term and I'm now ready to actively look for the best deal.

I'm hoping you can help me with a problem I have to solve...

I currently have £1486.98 left on a personal loan with HSBC. I am paying off £135.18 on the 15th of each month, meaning that my final payment is in August 07 (can't wait :j ).

I have read through the article 'cut the cost of existing loans' and the 'cut price plastic loans', and this sounds like a great way to save myself some money.

However I have a couple of questions:
  • Is there any reason why I can't transfer the balance to a 0% card once I've done the 3 steps in the cut price plastic article?
I have worked out how much interest I would earn if I shifted the loan balance onto a 0% card, and invested my repayment amounts into my ICICI savings account. I could then pay off the 0% balance when I was finished tarting, having earned some lovely interest on my extra savings contributions.
  • Are there any alternatives to the Egg Money card?
(Unfortunately I recently closed my Egg card, having paid off the balance, and will now have to wait 6 months before I can apply again.)

I have read through the articles carefully and can't see any reasons why this shouldn't be a viable option, but wondered why it wouldn't be mentioned in Martin's guide.

If anyone has any comments or advice to offer, that would be great.

Thanks and keep on saving :beer:

Don.

Comments

  • nomoneytoday
    nomoneytoday Posts: 4,871 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    First find out if there are any penalties for early redemption, and your settlement figure. That will tell you if its worth your while.
  • Don__2
    Don__2 Posts: 12 Forumite
    Hi - thanks for replying.

    I have looked into the settlement amount, and it is £1459.56.

    As I understand it, if I could shift this to a 0% credit card, then earn interest in a savings account, this would be worth my while?

    Cheers,

    Don.
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