should i switch ??

ukmartian

I have a guarantor loan and I am the guarantor, and (I apologize as I have posted about it before) ...However I have a question to try and cut my monthly payments....I may have the opportunity to pay the balance off by using my Barclay card credit card the balance is about £2000 and at the moment the interest rate on the loan is 49% ....and the payments are £108 a month ..So would this be a good idea and a better way in the short term to pay and what would the C/C monthly payments be ..... Thanks in advance ....

Gaz83

No way of saying whether it'd be better or not, or what the monthly payments would be, without knowing what the interest rate on your credit card is.

bigadaj

In reality you need to state what rate you have on your barclaycard. and certainly need to do that to get an idea of repayments, but in all probability it woud be around half the interst rate so probably a good idea. If you could get a0% balance transfer that would make it even better.

lynz68

You would also need to check if the loan company will allow you to pay the balance by credit card they may not.

In that situation you may need to look into getting a super-balance transfer card that will allow you to transfer money into your bank account and then pay via your current account.

I recently received an offer from my Barclaycard to transfer money to my bank account at 0% until Sept 2015 not sure if that was offered to everyone though.

ukmartian

Answer to both questions , the loan company have taken payments from my credit card before , so i dont see a problem there ....and second , my interest percentage is currently 16% considerably less than the 49% the loan company charges however getting a diff card may be a problem for me as after 3 yrs un-employed ( but now back at work) my credit rating is all but wiped out ...so if any can advise on my monthly payments on £2000 i would appreciate it...

dealer_wins

If you are eligible for these great rates, you should have taken them when the loan started!!

After all a guarantor loan is basically you taking out a loan, and giving the money away hoping to get it back!!

But to answer your question, if you can clear a 49% loan with a loan/card substantially less then its a good idea.

purdyoaten

I would be concerned that 'the balance is about £2000' may be difficult to equate with the actual settlement figure on this loan.

Tixy

I think barclaycard minimum payments are the greater of
-£25,
-1% plus interest and
-2.25% (check your T&Cs)

So on a balance of £2000 at 16% APR you'd be looking at around £45 minimum initially.

That said ideally you wouldn't want to be paying just the minimum payment, if you did it would take 23 years to repay the debt and cost over £2k in interest.

If you decide to pay the balance with your credit card then ideally continue to pay the £108 but to the credit card (which would mean the debt was repaid in 22 months at an interest cost of around £280)

ukmartian

Thanks for the replies...i am looking for a short term saving until i can get back on my feet ....3 yrs out of work due to redundancy when the house building trade collapsed takes it's toll, then with my wife walking out on me not just leaving me but leaving her debts as well makes things difficult ...so with those figures , I will be able to make a dent in the inherited debts as well...hopefully by making regular payments on several debts will go a little way to helping to rebuild my credit rating ....PS in case your think me as stupid 3 years ago i had a total household income of 30k a year ..I now have 17k a big drop ...hence the juggling :money: