help required about existing loan

scott_sanders86

my names scott and last year i attended a few trainning courses in which i took out a loan of £7500!

I pay a fixed rate £157.37 a month
I also pay an extra between £30-£40 a week
however my interest on the loan is arround £55 amonth and i have desided to go to uni in september 2007.
My loan is slowly crawling down but with an income of between £600-£700 a month i cant pay anymore off, I would like to be debt free by the time i get to uni what could i do to acheive my goal?

I was considering on getting a credit card and using the credit on there to pay into my loan is this a good idear and what else can i do?

DavidHM

Okay, at the moment you are paying off somewhere in the region of £300 per month off your loan. I don't know how long you've had it (since last year could be 11 or 22 payments ago - a huge difference) and I don't know how long you've been doing that.

However at a rough guess, if you have been paying £300 per month since the beginning and will continue to do so, you will have about £2,000 owing in ten months' time.

That's not too bad and if you won't need to borrow any more whilst at uni, you could repay the loan when your student loan comes through and then work on paying back the student loan as and when you are able.

Even if (at 20, it's not guaranteed) you could do a 0% balance transfer once or maybe twice before you start uni, you still won't have paid everything off unless you can increase your monthly payments, e.g., by cutting back spending even further or by getting a bar job, etc.

Even so, you are in more control of the situation than you might think and you are heading in the right direction so I'm sure that, with some more detailed planning, you will be able to manage.

Phoenix79_2

Doing a super BT from a credit card to pay off the loan is one idea that could be open to you. However....it would be best to pay it off before you go to uni so you don't have to worry about it. Can you get a second job? Anything you can sell on ebay to raise funds?