Advice- money transfer to pay off part of loan early?

spendaholic1986

Hello

I have quite a bit of debt at the moment (as you can see from my signature) which I trying to reduce as quickly as possible in order to hopefully get a mortgage with my partner next year.

On my Halifax credit card I have been offered a money transfer interest free for 15 months with a 3% fee. I am considering using this card to pay off part of a loan I took out last year of £5500 at 8.5% interest which can be overpaid/paid back early with no penalties.

I have £2800 spare credit on my Halifax cc and was thinking to use £2500 of which to pay off part of the loan. This would leave me with £2390 left on the loan at £51 a month for the remaining 46 months and £3940 ( including my exsisting balance of £1365 and 3% fee) on the Halifax cc to be paid off before the interest free period ends in September 2016.

I've worked out this would save me around £300 in interest on the loan. However I don't know whether this is a good idea? I would intend to make the same payments as I am currently however am nervous I could end up in a mess!

I also have another credit card on 0% until June 2016 with a balance of £3400 on it.

The idea of saving £300 in interest appeals to me but part of me wonders whether I can be trusted to keep up with the same payment amounts as the loan (and more) in the long term.

Any advice?

bennyhill_2

You could set up a standing order so in financial terms its a fixed amount each month, you don't have to organise paying it, it just comes out every month on the same date (ie: you're treating it just as you would a bill). This is exactly what I did recently with an MBNA card.