How to save money on my current loan

rach83

Hi guys

I currently have a loan with Nationwide with a settlement figure of 4631.88.I took this loan out in September 2004 the original figure was 8000.00 at an interest rate of 6.9% over 60 months. Is there any way of getting this debt on a lower interest rate? I have thought about getting a low life of balance credit card and doing it that way but I know you can't balance transfer loans that easily plus you have the fees to contend with.

Any ideas?

Cheers

Rafter

Rach,

You don't have a bad rate there and at least with Nationwide there will be no early repayment fees hopefully.

There are ways of getting funds from a credit card to a current account or loan using a 'super balance transfer' and there are various guides on here under credit cards about how to do this and who offers this service. Egg and MBNA spring to mind but be careful about transfer fees and getting caught out by money laundering rules.

Although it will take you a bit longer, another way is to get a 0% purchases card and put all your normal spend on that. The money you save put into a high interest savings account and keep doing this until you have enough to repay Nationwide. Then use a low life of balance credit card to repay your 0% purchase card and you should have managed to cut your interest rate down a bit.

Don't beat yourself up though. A 2% saving on your loan is only £8 per month and is reducing all the time as you repay more and more.

Certainly if you have any savings it might be worth using the flexible feature of your loan to repay a bit faster - it is very unlikely you can earn 6.9% after tax on your savings.

Good luck.

R.