Paying off bank loan early

sam_champ_888

i currently have £1067 left on a a 36 month loan with 12 months left on it. APR is 19.65% with natwest.
Would it be better or possible to take out a credit card and work out cheaper to pay the full amount with credit card and then pay back the card instead. or any advice or tips will help. thanks sam

currently paying them £93.11 a month
(Natwest says it chargs 58 days interest for early repayments)

Consumerist

Welcome to the MSE forum.

The current loan requires 12 x £93.11 = £1,117.32 total payments over the remaining 12 months.

Looking at the numbers for a "super balance transfer" from a credit card, I have come up with the following :-

The early repayment charge (58 days interest) = 2.9% of outstanding balance = £31 approx.

Balance to transfer = £1,067 + £31 = £1,098

From the MSE Super Balance Transfers page:

Both the MBNA Platinum Plus and Virgin cards offer 0% for 16 months on 'super balance transfers' for a one-off fee of 4% (higher than the standard fees charged on balance transfers).

So, a super balance transfer of £1,098 will have a one-off 4% fee of about £44 added to give a credit-card balance of about £1,142 altogether.

So it would cost you about £25 more to transfer to a credit card than it would to continue repaying the loan.