🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Balance transfer advice

12bdebt3 Posts: 446 Forumite
First Post First Anniversary Combo Breaker
edited 15 December 2010 at 11:08AM in Credit cards

I am looking for some advice on a loan I took out with Nationwide Building Society a few months ago.

In September I took out a loan for £3,000.00.
I would pay this over 18 months.
The total amount of interest is £372.30. (Pretty much £20.00 interest a month, which isn't too bad.)
I would pay £187.35 a month for 18 months, with a total repayable amount of £3,372.30.

Up to now I have made 3 repayments of £187.35, totalling £562.05, which means that I now owe £2810.25. At the current rate I'm paying it would take me 15 more months to pay off. I really don't want this debt hanging over my head on until March 2012.

My current income is £970.00 a month. I live with my girlfriend and pay half of all the bills:
Rent: [STRIKE]£550.00[/STRIKE] £275.00
Council Tax: [STRIKE]£75.00[/STRIKE] £37.50
Gas: [STRIKE]£40.00[/STRIKE] £20.00
Electric: [STRIKE]£30.00[/STRIKE] £15.00
Water: [STRIKE]£30.00[/STRIKE] £15.00
TV License: [STRIKE]£25.00[/STRIKE] £12.50 (First 6 months so we pay double, I never actually get why so if someone wants to explain that to me too?)
Food: [STRIKE]£200.00[/STRIKE] £100.00
Sky (TV, Internet & Line Rental): [STRIKE]£50.00[/STRIKE] £25.00
The only other thing I have to pay out for, apart from my loan of course, is my iPhone bill which is £40.00.

All of this means that I pay out around £540.00 a month. Which leaves me with a disposable income of £430.00. Obviously with my current loan repayment I have a disposable income of £242.65. I am looking to get my debt cleared in about 8 months, so at the end of next year I have around £500.00 disposable income in the run up to Christmas. Repaying my debt will cost me around £350.00 a month, which will only leave me with £20.00 spare a week.

I am wondering if anybody is in a similar situation and has any advice? I have looked into applying for 0% balance transfer credit card. Can I pay a loan off with one of these? Is there anything better for my situation? Would you advise me leaving myself with only £20.00 a week disposable income?

I know that the only thing I don't want to be doing is paying this debt off next Christmas I want it gone sometime in the middle of 2011.


  • stephane_2
    stephane_2 Posts: 3,076 Forumite
    You first need to contact Nationwide to get a settlement figure so you know how much you exactly owe, you also need to check if there are any penalties for paying the loan earlier, some lenders will charge 1 month interest but it vary. The only way to pay the loan off with a credit card would be to get a card which allow SBT (super balance transfer) where you can transfer fund directly onto your account....the other option would be to put any excess cash into a saving account until you have enough to pay the loan off.....
  • the_insider
    Can you make overpayments on the loan? If you can without penalties then do that.
    Getting married 02.08.14
    Wins for the wedding: membership for a 'wedsite' and app, £35 gift voucher for party supplies shop, £50 worth of hand painted signs, 1kg of heart shaped marshmallows :money:
This discussion has been closed.
Meet your Ambassadors


  • All Categories
  • 7 Election 2024: The MSE Leaders' Debate
  • 343.8K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.1K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards