A balance transfer for a student

Mizz_Pink

Hi,

A family member is a full time student. They have a LLoyds credit card , a balance of £3400 paying a whopping 17.9% interest. Monthly payments of £80 is only paying off the interest. They are having difficulty getting a 0% on bt with another credit card and have also tried to do a Super BT but their bank has refused. Can anyone offer any help ?

Much appreciated

David_Brent

Hi, are there any family members that would be kind enough to take out a small loan for the student? with a low interest rate to pay off the llyods tsb account. All he/she would need is someone who is a home owner, must be a UK resident and aged between 23 and 69 You must earn a minimum of £12,000 per annum and no diverse credit problems, if anyone matches this criteria they could take a loan out for £3,400 at 6.5% APR with repayments over a year (12 monthly payments of £293.12) or 2 years at the same APR 24 monthly payments of £151.17 or... 3 years of 36 monthly payments of £103.92. There will be no real difference apart from the loan will be in the name of someone else, whilst the student sets up a direct debit to make monthly repayments (less than half of what they are paying at the moment). It looks like the cooperative bank seems to have the best APR% on the amount you said, but have a shop around, take a look at: http://www.moneysupermarket.com/Loansp/default.asp for comparisons.

If you are looking at 0% balance transfers you need to phone around different banks and ask them to quote you (looks as though los of these 0% BT deals are dissapearing at the moment also), As im a full time student, 0% or there abouts - balance transfers would be quite difficult to get because of income etc, and remember whoever you take the balance transfer with, make sure you are not overdrawn at all on that account otherwise you will be charged high interest on that at the same time.

Clareo

As a student it's very easy to get interest free overdrafts, why not open up another bank account, can get at least £1250 even in 1st year so that would take it down a bit and be interest free even for a good while after graduation. They say u can only have one student account per person but I know people who have got 3 or 4....