help whats the best way to pay off loan

heva_1

what is the best way to pay off a variable rate loan as the interest per month is too high

Peelerfart

Have you read your T&C's are you allowed overpayments?

heva_1

yes and I'm paying double what i should be paying but the loan is still taking most of it in interest I was thinking of balance transfer with a zero interest rate for two years but when I phoned one bank they said you couldn't pay off a loan with a credit card.

CLAPTON

heva_1 wrote: »

yes and I'm paying double what i should be paying but the loan is still taking most of it in interest I was thinking of balance transfer with a zero interest rate for two years but when I phoned one bank they said you couldn't pay off a loan with a credit card.

maybe give us the details

how much was the loan
what is the APR
what are you paying each month

any over payment reduces the capital and so the total interest paid ..

FireWyrm

My first thought would be....quickly....

But seriously, what posessed you to agree to a loan where the interest was not only variable, but apparently more than the principle component of the payment? This is madness. Surely you were given a comparison breakdown showing how the payments were structured and when you would finish the payments off?

No, you cant pay a loan with a CC as that would be a cash advance and not a good idea at all. The other option of course is another loan which does have a sensible rate of interest. Thirdly, you could just work really really hard and pay it off as fast as possible. Without knowing what your finances look like and what the loan repayments comprise, it's very hard to advise properly. If you come over to the DFW (debt free wanabee) board, and fill out an SOA, we'll be able to help you further.