Moving a loan debt to credit card question....

BlueLuke

Hi Guys,

Hope everyone is doing well, my debt - busting has struggled recently due to some problems elsewhere but I have decided to dust myself down and get rid of this burden!

I have a loan which is £6,000 for 3 and half years (started September 2010) and I am looking at moving it onto a credit card with a long balance transfer and paying it off that way so the interest is less painful then watching minimal payments on the loan get paid off. ( it will cost me if I pay off more than minimal)

Please could anybody tell me if this is possible and if it is worthwhile? Please feel free to shoot this idea down, I am just looking at clearing my debt at a quicker rate than it already is.

I am also open to any other suggestions that I could try to nail this loan as well.

Thanks in advance.

BlueLuke

bottleofred

Hi Blueluke,

I would be very surprised if you got a credit limit for that amount on a card. I also think it's a bad idea, as even if you were lucky enough to get a 16 month card at 0% to put the £6000 on, the minimum repayments would be almost £400 per month. My advice is to see if you can clear the loan quicker, but make sure there are no early payment penalties.

Good luck

Red

BlueLuke

Thanks for your reply Red.

I will look at trying to cut it down another way then. There is a lot of motivation around these boards so I am hoping I can cut this down over the next 12 months and get other tips etc on how to do this swiftly.

Thanks again!

BL

Tixy

Hi Luke

What APR are you paying on this loan?
How much do you pay towards it a month?

How much is the max you could afford to pay off a month?

BlueLuke

Hi Tixy,

The APR that I am paying on my loan is 9.6% and and my minimum repayments are £195.72.

I can definitely pay off more starting next month however I believe that I will be charged for over paying.

Is there anything else you could suggest or what I'm paying at the moment reasonable enough ?

BlueLuke

Is it even possible to move my loan to a credit card so I can pay it off more quickly?

I was looking at getting the Barclays 20 month balance transfer deal so I can clear the debt completely however I believe that I could shift this within 10 - 12 months.

Any help or information is much appreciated.

Thanks

josie836

Could you continue to pay the same amount but save up any extra to allow you to pay it off in full at an earlier date>