Settling a loan early

Miss_Lancaster

Hello Friends,

I need a little advice and some more brain cells. I have a loan with Sainsburys which has a current balance of just under 4k. I'd like to pay it off early (to avoid the 6.50%APR) using another method (with a lower rate)

I've just been told they can only accept cheque or bank transfer to settle the loan, I cannot use a credit card. Is there any other methods I can use with a 0% credit card to settle the loan early and have 12/18 months to pay it off at 0%?

Many thanks

Miss L

Tixy

Do you already have a credit card with a 0% deal? which card? only way you can do this is if your credit card is one of those that allow super balance transfers. This is where you transfer money from your card to your current account - which you then use to repay the loan.

Only some cards allow this and most charge a slightly higher BT fee that for a standard BT.

keith1950

Hi, when you pay by credit card the company receiving the payment lose up to 2.5% in charges so if Sainsburys accepted the payment they would be losing up to £100. If you were willing to pay this charge they may accept payment by credit card. Otherwise, as already stated ,it means shuffling the money between card/current account/loan.