ok please help !!

clarissa_D

hi ya guys and girls well i need sum advice on credit cards, ok i have £600-£700 in savings account and i got a loan out for a so called friend 3 years ago £2k.its now down to £830.95
info
Original Loan Amount:£2,000.00
Current Loan Balance:£830.95 *
Opening Date:22/09/2003
Repayment Amount:£65.46
im on benefits income support and child n housing.. would like to know if my savings would change my credit rating to get a credit card to do a balance transfer..?
i figured i would have 13 more payments till i am paid off at £65.46 = £850.98
but if i do it at 0% credit card transfer in 12 payments id be cleared £840 wich if im right i would save £750.51 *interest rate is 16.61%* so i figured that £750.51 would be mine? am i wrong? so if any1 can help me out id really appreciate it !!!

Toomuchdebt

I'm wondering why you can't pay it off with your savings and save a lot of interest that way-you could pay the rest off in 2 months without having to get a credit card.

Glitterari

you would have to check if the loan would allow you to pay it off early without penalty also.

C x

withabix

16.61% of 830.95 is £138.02. That's the most you would save by borrowing the money from a 0% APR card. So you would still have to pay approx £690.

I say approximately, as APR calculations are a bit of a minefield when you're part way through a loan.

clarissa_D

well the £600-£700 is my savings for my little girl not for me.. and i have already bailed her out the 1 time by getting her the loan in the 1st place.
yes i can paid the loan off early..
any 1 else got any ideas please .. thank you to the 3 pep that replied already
sorry my maths is reli crap xx

Glitterari

well the £600-£700 is my savings for my little girl not for me.. and i have already bailed her out the 1 time by getting her the loan in the 1st place.


Sorry that bit doesn't make sense to me - can you elaborate or am I being thick?

clarissa_D

i have £600-£700 in savings account and it's not to be touched
got a loan out for a so called friend 3 years ago £2k.its now down to £830.95
i already paid off £200 for the couple of years i struggled trying to get her to repay me back..
its just really frustrating that i have had 3 years of hell trying to get the money back to pay it off.
as she could easily say she is stopping payments and then ask for a print of the loan amount left and if it says balance 0.00 she will then think im stealing her £70 per month.. when i haven't id be re-paying the card back.. and extra £160 would help out.
just really wanted to know if my savings and the money in my bank showed if i was credited to get a card ?

nearlyrich

If you can pay the loan off early without penalties you could use the money in your child's acount and then repay it using the money you are repaying the loan company currently.

clarissa_D

but then i would have no money to fall back on if i need anythink for her.. its my babys future also my weddings savings its mixed savings..
i would rather get card out and do it that way.
im not going to use my savings sorry.. you may think im being silly and its silly to save but it's not my debt im not using my money it has taken me to long to save it up....

Toomuchdebt

So she is paying it right?If she asks for a balance you can show her a statement showing a lump sum payment so she will know you have paid it off.I would still use the savings though because your friend will be giving you the £70 a month so the savings would soon be built back up.

jobbingmusician

Am I missing something from you other MSE's? There are 2 issues here

1. Should the OP pay off the loan early from savings, or from an interest-free CC?

2. Should the OP pay off the loan early at all?

I don't propose to discuss 2, as possibly only the OP can decide this - I don't really understand about the friend and seeing that the loan is paid off. (It sounds to me like the OP thinks it would be better to pay the loan off anyway, and that's good MSE practice as she will save the interest).

So the rest of you, surely, are advising her about the choice between using savings and an interest-free CC, as I understand it. Or have I got this wrong? I really think I must have misunderstood as you all seem to be telling her to use the savings (and therefore lose out on interest) - SURELY the best thing to do is to do it on interest free CC?????