Is this possible?

KingRoLo

Is it possible to transfer my outstanding debt from my egg loan via a balanace transfer to a credit card?

I have to admit i was naive when i got this £10,000 egg loan nearly 2 years ago and i checked the recent documentation from egg saying that ive got 74 repayments left of £158. I quickly totalled that up and it amounts to 11060!! i couldnt believe when i saw that figure, ive been paying it off for 2 years and im still £1000 away from actually paying off the amount they lent me - crazy :eek:

So this put me in a bit of a panic, trying to think of any way i can do this with a lower percentage.

Any help, hints or tips would be very much appreciated.

jonesMUFCforever

What is the APR on this loan?
What happens if you succeed in getting a card with a high enough limit to pay off the loan when the interest free or low initial interest period ends??
Can you afford to pay more than £158 per month?
I know that MBNA in particular have deals whereby you only have to pay a minumum of £5 per month on initial cards but most will want a minimum of 2% per month which is £220 a month.

Until we know your APR we don't really know what to advise but I think the credit card idea is a no brainer.
What I would be looking for is another loan with a lower APR to re-finance.

KingRoLo

Hi, sorry about the delay in my reply.

My egg loan APR is 7.9

I spoke to one of the customer services people today and she was quite helpful. She explained that with this loan i actually have about £8000 to pay off. Although if i continue with £158 per month as per the repayment plan i would of paid them in total something like 14000 back because of the way the interest is calculated. Apparently there is no fee for paying it off early.

Now i think if i saved every month i could just about pay it off in total in 2009 rather than the current repayment end date of 2012. So thats 3 years of interest i could be saving if i 'somehow' managed to switch it over to a credit card and then swapped it over to another credit card when the 0% deal ends just like balance transfer.

I dont hear many people doing this, is this something i could do? is it risky?

Tr@cker

You can transfer money into your current account with some cards e.g. Virgin then make additional payments thru a special sort code set up from your current account. You should of course have a new 0% deal with a credit card to make this worthwhile and also there'll be a fee for this, probably 2.5%.
The flexible loans even at a bit higher APR are a good buy if you can pay up early, paying up early with a fixed loan and you'll get ripped off with the horrible 'rule 78'.

jonesMUFCforever

KingRoLo wrote:

Hi, sorry about the delay in my reply.

My egg loan APR is 7.9

I spoke to one of the customer services people today and she was quite helpful. She explained that with this loan i actually have about £8000 to pay off. Although if i continue with £158 per month as per the repayment plan i would of paid them in total something like 14000 back because of the way the interest is calculated. Apparently there is no fee for paying it off early.

Now i think if i saved every month i could just about pay it off in total in 2009 rather than the current repayment end date of 2012. So thats 3 years of interest i could be saving if i 'somehow' managed to switch it over to a credit card and then swapped it over to another credit card when the 0% deal ends just like balance transfer.

I dont hear many people doing this, is this something i could do? is it risky?

I think that by the time you will have paid balance transfer fees you will end up paying the same if not more interest ob credit cards - that's if you get a card with a high enough limit in the first place.
To be honest 7.9% is not a bad rate especially if Egg allow you to overpay.

roswell

you will end up paying more in transfer fees than you will save, al alternantive depending on the loan amount and credit rating would be a life of balance card like marks and spencers 3.9% even if you can only get half the loan on the card it will save a lot of interest but that is assuming that you dont have any early payment penelties on the loan ...