Loan and credit card advice...

pugzy

Am in need of some sensible advice and to point me in a sensible direction with my loan and credit card.

I have a £3.4k Lloyds TSB bank loan at 14.88% APR. I pay £118.65 towards it per month, but due to the APR, around £75-£80 actually goes towards it. I still have 3 years to pay on it if I continue this way.

I also have a credit card with Barclaycard that I used to balance transfer £1.6k to on a 0% APR deal back at the end of last year. I've got it down to £1048.41 now. This deal will finish in October 2011, where I plan to try and offset to another 0% APR balance transfer deal with another company. I pay £116.45 towards this per month as I aim to pay it off by Christmas and will if I continue.

This will be a great feeling to know this is gone, however, I'm unsure if I'm snowballing these 2 debts in the right way?

Should I be throwing the extra cash that I was putting towards the Barclaycard credit card, at the Lloyds TSB loan instead? Due to the fact that it's 14.88% APR?

Would I be able to pay off the loan at all with a credit card at a 0% rate, then the full £118.65 that I am paying towards my loan each month would be going fully towards that big £3.4k total that I owe?

Please leave me some suggestions as I don't know whether to continue with what I've planned or to switch it?

Thank you!

[Deleted User]

What's the go to rate on your Barclaycard?

pugzy

As in what is the total limit of my Barclaycard credit card? £2.6k...so minus the £1048.41 I have from the balance transfer, leaves £1559.51.

Wouldn't it cost to shift anything onto this now though, as the 0% APR balance transfer deal only lasts 30 days from when the card was activated, which was October 2010.

[Deleted User]

No - I mean what rate does your Bcard debt go to after the 0% comes to an end. Your worst case scenario is you can't shift it to a new promo so are left on the Bcard standard (go to) rate.

Normally you should pay off the one with thehigher rate (ie the Lloyds), but that argument may not hold true if your Bcard goes to something horrific at the end of the promo and you can't shift it. Would also be useful to know what your limit is on the Lloyds - does that have room to hold the Bcard balance if need be?

My gut feeling though is you should be paying more off the Lloyds card.

pugzy

Ahh ok, my mistake

Having just found the T&C's from when I took out the Barclaycard last October, I read it as 19.9% APR (variable).

My original bank loan with Lloyds was set at £5k, now £3.4k after 2 years, 3 years left.

My bank manager did say that I should probably be paying off the Lloyds more due to the APR rate compared to the 0% Barclaycard, which is what's got me thinking the last few days.

I either clear the Barclaycard and feel good about it by the end of the year, or just keep chipping at the bigger picture.

[Deleted User]

Bigger picture. I know if can feel good to tick a debt off, but hit the Lloyds one for now (sorry, I read it as a card, not a loan). I assume you can pay as much as you want towards it without penalty?

pugzy

Yeah I can, is there no way I can pay it off with a credit card at 0% for however many months and continue paying it that way.

Therefore, having 2 credit cards.

Barclaycard at 0% APR until October 2011, paying minimum payments.
Another credit card lender at 0% APR until whenever, paying the larger payments that would have been going towards my loan, except, the fully amount is paying it off as no APR?

Or am I in the clouds and should continue with the accounts as they are, maybe just shifting the extra funds that were going into Barclaycard, into Lloyds instead?

Really appreciate your help by the way, thank you

pugzy

Any ideas on post #7?

[Deleted User]

Sorry - got tied up with stuff.

Potentially yes. Lloyds probably won't accept a direct card payment to pay it off, but if you can get a Super Balance Transfer card or otherwise get money off the card into your account on a promo basis (without big fees and daily interest), then you could do it that way.

pugzy

Super meaning...? Just one that will allow a large amount?

Would it be classed as a balance transfer or a purchase if I could?

Guessing I'd just apply as usual, stating that £3.4k to be transferred and see what happens?

It's all too confusing lol!

[Deleted User]

Super means you can effectively pay money into your account from the credit card. Getting cash off a card is normally a big no no, but some cards allow you to transfer cash into your account for the BT fee (ie 3% ish). And still benefit from the BT promo rate.

I'm not sure that most cards allow a BT from a loan, normally just from cards.