Advice pls, need to borrow £2K for 12 months

westyorkschick

Can anyone help me as to the cheapest option for borrowing £2000 for 12 months, I will defintaly be able to pay it back within this time and probably faster so was looking at borrowing aginst a credit card (withdrawing the money- ouch!) then transferring the balance to a 0% credit card.
I can get a loan but would like the flexibility of being able to pay more off the balance some months to try and clear it early and I understand most loan providers will charge you to do this or some wont allow it at all.
I have a good credit history and have arround £2.5K on a credit card and I have a mortgage but no other outstanding debts.

advice from anyone in the know would be very much appreciated.
Many thanks

yorkshire-lad

Speak to your bank,some offer flexi loans allowing you overpay to bring the amount down quicker.
I know HSBC offer this.

And I'm pretty sure you will get charged a fortune taking out 2k cash on a cc,so I would put that idea somewhere far away.

Failing that,why not save up?

Apples2

What about an overdraft, you can overpay at a whim reducing your balance as you go.

I assume you are expecting some kind of bonus, otherwise a statement that you can repay this a lot early looks on shaky ground if you can't eliminate your current credit card debt.

Tixy

What about a 0% credit card that allows 'super balance transfers' so you can transfer the money to your current account - MBNA cards allow this and charge a 1 off fee 4%.
You will have to pay just the minimum payment each month.

westyorkschick

Thanks for all your suggestions, The super balance transfer is worth a look, but I assume then that the interst on the credit card would be horrendous? Does anyone know whether I could do the super balance transfer option then transfer the balance to a 0% card? I presume that this isn;t possible and that once you transfer a balance you are then tied in?

I am clearing the current CC Yorkshire-lad (ah a fellow northern thrift fan;-) It was much larger but I need to have access to £2K to repay a family member who leant me the £ when I had to buy my ex out of the house (I know....I should have been thinking about this and saving accordingly) My finances are more under control now and everything is more manageable.
I;m trying to steer clear of a loan because the last time I had one I was weak willed and just kept consolidating into it - not ideal!

Thanks again

Tixy

Something like a 0% MBNA card will be 0% on the super transfer just like normal balance transfers, you don't need to transfer it again. If you pay the minimum each month and the full amount before the 0% period ends then all it will cost you is the 4% fee.
This table http://www.stoozing.com/sbt.php shows the cards you could use it lists the fee you would pay and how many months its 0% for.

westyorkschick

thanks Tixy, thats sounds exactly what I'm after, so just to be clear, I could transfer my balance from my current CC to (for example) the MBNA card and then also transfer the £2K i need from the MbNA card to my bank account to clear my faimly loan, meaning I would then have £4.5 K on the MBNA card which I would keep an eye on and if I cannot clear within the 18 month )% period I could then card tart to another 0% card.
Hope I dont sound think- I;ve only ever had the one CC and a loan- I'm not very £ savvy when it comes to lending.

westyorkschick

Sorry i meant hope I dont sound "thick"..... and now I do!

Tixy

Yep, thats exactly what you could do - subject to getting a high enough credit limit on a new MBNA card.

You don't sound thick - its best to check things out first rather than make a mistake which costs you and I think a lot of people don't know about super transfers.

Now just to check - who is your current credit card with? if its a card backed by MBNA (and there are quite a lot that are) then you couldn't transfer a balance from one MBNA card to another, so you need to try someone else from that list of cards on the link I mentioned.

One last tip with any 0% card - make sure you always pay the minimum on time (most people say DD is best), if you are late with your payment you will lose your 0% deal.

Tammer

yorkshire-lad wrote: »

Failing that,why not save up?

Hi, that was a good suggestion. It's just a shame that this forum seems to be all about MoneySpendingExperts these days. People are helpful in suggesting the best ways of accomplishing what you've asked but I miss the days when people used to challenge "do you really need to borrow....".

westyorkschick

Thanks Tixy, my CC is with HSBC? is this fatal to my plan?
Tammer, I hear what you say but I have no other option at this point.... if I didn't need to borrow...I really wouldn't- this is a short term solution to pay back a very generous family member that needs the loan back- this isn't for me to go on holiday or spend on luxuries.