Paying off loan with 0% credit card?

maidincornwall

I have a £4600 loan from my bank which Im paying £220 per month into, I stupidly took this out on their advice to consolidate an overdraft and credit card, now I wish I hadnt, my question is if I were to get a 0% balance transfer credit card could I pay off the loan with this then pay money monthly into the credit card hence saving most of the interest? I can manage to pay it off easily by the end of the 0% period as soon I my husband will be receiving his war pension which he has waited over 2 years for and is the reason I got in debt in the first place. I own our house and another that I rent out to bring in a small income, but due to my husbands disabilities I cannot work full time and he cannot work at all, so we are well off in capital terms but have very little income, and all savings have been spent already whilst waiting for his pension to come in. We dont have joint bank accounts because I have a good credit rating but his is very poor due to debts when he left the army after his wife left him. Thanks in advance for any advice. MIC :beer:

oh I do have a lloyds credit card, I could use this if I needed to have the debt on a credit card in order to transfer the balance or could I transfer it straight from the loan?

Tixy

Your bank won't let you pay off the loan with a credit card payment. So the only way to do this would be to get the money into your bank account and then use that to pay off the loan.
Most new 0% cards won't allow you to put money in your bank account. There are a few that do, these are known as super transfer cards or money transfer cards - a list of them is here - http://www.stoozing.com/sbt.php - the fees for this are around 4% of the balance.

The other option is an M&S or tesco 0% card that you use to buy sterling travellers cheques and then pay those cheques into your current account - the fee for this is around 1.5% (I think).

These cards are not the easiest to get and of course would be subject to you being offered a high enough credit limit. Your chances depends on your credit history on your credit file and your financial situation.

How much is the APR on your current loan? are you allowed to make overpayments on the loan (ie can you pay more once your husband received his pension?). If so, and depending on how much extra you will be able to afford I would check carefully whether you will actually save money by moving it to a card (once you've taken into account balance transfer fees, the settlement fee on the loan etc).

You say you could put the debt onto your lloyds credit card first - have you checked you can do this? move money from your lloyds card to pay off the loan. Lloyds don't, in general, allow this type of transfer.

thenudeone

have a look here
https://forums.moneysavingexpert.com/discussion/3481955

maidincornwall

Thanks, I think I was just feeling a bit sorry for myself, not having a very good day today and the loan was worrying me when really i dont think it needs to, i have just sold a car for £200 and am waiting for another £100 more, also have couple of other things for sale bringing in around the £1000 mark so will put that money into the loan. I am just fed up with this War Pension thing, the delays of over 2 years just arent acceptable, we have just got the monthly payments in £47 a week but are still waiting for the back payment for 2 years, also about to go to tribunal over the the pension as realistically £47 a week isnt enough for someone who is so traumatised they cant go off the property alone, (yes he has had treatment and is on medication) It also means I am often up at night with him so I dont get much sleep, the waiting has used all the money which I inherited on my mothers death 4 years ago and I feel such a failure that my parents managed to save that money and i have lost it in just 4 years, although being rational I did pay off the mortgage on my home, buy some land and a small house to rent out so I suppose I shouldnt feel too bad, I know I am incredibly lucky compared to most people, today it just dosent feel like it as my anxiety has got the better of me. Thanks for the advice it has put things in perspective .......Rant over :beer:

Tixy

You are totally right - its not acceptable for it to take so long - hope you soon eventually get this sorted. I'm sure your parents would want you to use the money for whatever you needed to in order to be able to manage.