loan to 0% cc?

Pickle_99_uk

Hi there

I've looked around for an answer to this but can't find one. Apologies if the answer is somewhere else.

Hubby and I have a joint loan which we took out to get a new bathroom 3 years ago. We pay £150 a month but due to interest that only pays off around £20 - £45 of the actual loan. Our finances are looking healthier over the coming weeks and months for one reason or another so I've rang the company today to look at some options. They said we can't increase the direct debit but can make additional payments. I asked for a final settlement figure and with the early repayment charge it is actually a few hundred more than we owe at the moment!

I would just like some advice as to the best thing to do - would it be possible to transfer the remainder of the loan onto a 0% cc? Could we transfer part of the loan onto the 0% cc we already have (which are not at their limit as we have been paying them off over the last few months)? What about taking a loan at a much lower interest rate and using it to pay off the bathroom loan? Or would it be better to simply make as many additional payments as we can? The loan is in joint names so would that make a difference? Confused!

Thanks for reading.

xx

Tixy

Hi

How long do you have left on the loan/what is the settlement figure? How much could you afford a month? more than the £150?

You can't do a transfer direct from a credit card to pay a loan. There are a few credit cards only that allow you to transfer money to your current account and you could then use that to settle the loan. These are known as money transfers or super balance transfers - main providers are MBNA (and associated cards like virgin), Post Office and M&S. Barclaycard will sometimes give existing customers this option but not new customers.

If you could get a cheaper loan (either joint or just one of you) then there would be nothing to stop you paying off the loan.

If you can afford more than the £150 a month and keep the loan as is you would need to check if overpayments are allowed - your paperwork should say.