My loan, SBTs and my options....

Phoenix79_2

As you can see by my sig i have a loan with £11.5k outstanding on. This depresses me! I should have never took it out. The thing i dislike about loans is the inflexibilty of them. Least with CCs you get a statement every month and can swap the debt around when you want.

Now....i've read up on super balance transfers but just need a few things cleared up in my own head.

- I owe £11.5k on my loan but have £3k (will do by next week) in savings so my net debt is £8.5k
- I have an MBNA platinum plus visa with a £7k limit. This card is currently clear and has no debt on it. I believe this is one of the few cards you can do super bts from?
- I was thinking of applying for another SBT card (Egg Money) and hopefully getting a minimum limit of £1.5k so my loan debt is coverd
- Thinking of transferring money from the mbna and egg cards into my account and with my savings settle the loan
- This then leaves me with the £7k on the mbna card and £1.5k on the egg card.
- Shop around for the best 0% deals or LOB deals to transfer the debt to (the MBNA card has no prmotional apr so i imagine it would be the standard pricy apr).

Can anyone see any holes in this? Or have i got it completely wrong in my head?!

Thanks

YorkshireBoy

Phoenix79 wrote:

Can anyone see any holes in this?

You don't say what APR your loan is at, or whether there is an early repayment penalty.

I note from another thread, you've just applied for an MS card (for cashback), and now wonder if it's too soon to apply for a 0% on purchases card (to pay for Xmas over the next 6/9/12 months). If you apply for Egg Money, that'll be 3 searches in quick succession.

If the above damages your credit rating, you could finish up with a 16.9% APR loan (with higher monthly payments than you were making before).

On the brighter side, MBNA are known to give low APR repeats. Why not give them a ring and see what they can do? They may also pay directly into your current account.

Having said all that, have you considered a LOB card? Maybe 3.9/4.9% APR for life will be better than trying to tart 0% deals every 6/9 months and paying a BT fee each time.

Phoenix79_2

Hi,
Thanks for the reply

The loan is at 7.9%. Not sure if there is any repayment penalty. Will have to check.

You're right about the three successive seraches.....its just that i get impatient and when i get an idea into my head i want to do it as soon as possible! Perhaps i should slow down a little bit! I'm prepared to scrap the idea of a 0% purchase card in order for this to work. Also the MS 'cashback' card also has a 3.9% LOB deal on it as well (well, until July 2010). I've also got a Capital One Platinum with 9 months left on 0% which has a £5.3k limit. Only using £1.6k of it at the moment

I was going to ask that question about MBNA. If they can transfer the £7k into my account and offer me a decent LOB then it'll be fantastic.