Cutting the cost of existing loans

Don__2

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.

nomoneytoday

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

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.