0% balance transfer - loan debt?

savvylass

Hello

Ive been reading up on using credit card as better way to pay off debt but Im unsure of how to move by loan debt to a credit card and get the deals.

I see there are a number of credit cards at the moment offering 0% balance transfers for upto 26 months.

I currently have £4.5k on a loan which is due to run out in 2 years but I pay a huge £415 a month due to interest.

Is it possible for me to move this amount to a credit card and take advantage of this great rate? I would just set up a monthly direct debit splitting the balance over the 26 months which would be alot less than I am paying now and as we have a new baby and wife on lower wages this extra money would be a god send.

However is this to good to be true? Im a totally getting it wrong?

If a balance transfer has to be from one credit card to another to get the 0% rate does that mean I have to take a card, pay off loan then take another card and transfer it to get the 0% rate (im totally confusing myself now!)

Or can I take a credit card, then phone up and pay off loan with it? or does that class it as a purchase on the credit card and therefore not give me rate?

Please if someone can put me right on using credit cards to pay off loans that would be great. From Martins page on the matter i beleive this is a money transfer so is that difference from a balance transfer and is there only certain cards that will let me do what I want to do?

I wanted to ask here before calling up any companies and asking this question incase moving debt to cards puts them off loaning.

I have a good credit score and have never missed any payments so getting it wont be a problem i just need to be sure its right for my situation

thanks in advance to anyone who can explain it nice and simply for me

savingjenny

not many balance transfer cards will let you move the money to a bank account which you can then use to pay your loan with.

There are some at stoozing.com then go to Credit Cards then Super Transfer. But they aren't as cheap as the 26 months 0%s you mention.

savvylass

from martins page about this it looks like the Virgin Money card lets you do a money transfer at the same rate as balance transfers if you do it within first 60 days of taking out card. you do pay a one off 4% fee but thats still way less than monthly interest im paying now and worth it for the 26 months 0% interest.

thats if im understanding it correctly

[Deleted User]

Yes - the Virgin card would let you do a money transfer. But whether or not you get it will depend on your credit history and circumstances.

Worth a shot if your credit file is in decent shape.