Not sure what to do?!?

mandy6979

Myself and my husband have a car loan which has £7,500 outstanding on it with Capital Bank, and we're paying £192 a month for 60 months (46 still remaining to pay). We have no debts (apart from the loan obviously!), credit card balance is £0, good credit rating and we have a good joint income (approx. £50k per year).

Ideally, we would like to pay off the above loan quicker than the 3 years and 10 months that are left on it. If we put it onto a 0% credit card (moving it as and when 0% offers end), we could pay it off in 2 years @ a minimum £300per month and it would save us a fortune in interest charges. We're already paying £192 a month for the loan, so it would be just an extra £100 or so a month which we could easily afford and not really miss that much.

But, the question is - would a credit card company allow us to put such a large amount onto a 'newly applied for' credit card in one purchase? We're really keen to pay this debt off as quick and cheap as possible. The credit limit on our existing credit card (RBS visa) is £9,000 although our balance is £0. Anytime in the past when we've had credit cards and paid them off, we've always wrote to the company concerned and closed and cancelled our account with them.

Any advice would be greatly appreciated. Thanks.
Mandy.

southernscouser

There are cards that allow you to do this but I don't know what ones! :think:

I think your best bet would be to post this on the credit card board!

Good luck! :beer:

wannabedebtfreebeth

I would try ringing your current card up and asking if they will offer you a 0% deal to transfer the debt to them. My friend moved a similar amount from his card to another and they rang him up and offered 0% for a longer time to move it back! At the end of the day it costs you nothing to ask them.

CLAPTON

have you asked for a settlement figure for the debt and if so what is it.

angchris

i would save up the money as you have a good income coming in and put it in a high interest account untill you have enough to pay it off, messing around with credit cards can sometimes backfire if you are not very careful

FatJock

Mandy6979,

To add my two pence worth, I'd also be carefull when paying of the Capital Bank loan in full. There may be a clause in you T&C's that add a financial penalty if the loan is settled in full before the 'natural' date of the loan (i.e. 2 months interest).

You may need to pay off 99% of the loan and leave a small amount in the bank for one last monthly payment.

When I paid off my car loan to Lloyds they advised me of this (saved me a bit of money actually).

Hope this helps.

Regards,
FatJock