switch a loan to credit card 0%

sarahscott32

hi all,
i have a tesco loan im paying 6% on!
can i switch this to a halifax credit card (0% for 23 months?)
in the description it says 'transfer credit/store cards' but no mention of loans?
thanks

[Deleted User]

No. You'll need a money transfer option.

sarahscott32

ah, so i need a good 0% 'money transfer' card?
anyone know of one?
thanks

frazell

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs


It wont be fee free though.

MallyGirl

virgin money has 21 months at 0% for 1.69% fee.

sarahscott32

thanks...anyone good at maths, im aiming to pay it off within 18 months
anyone work out what i will save by not paying the 6% in that amount of time...
i have £6,000 to pay...
need to factor in the fee too!!?? confused!

bigadaj

Very roughly 6% over that time will be a total of 10% give or take. So you would be paying £600 on the full amount on that term, and the fee is around £100.

The saving won't be that much on a loan in all probability as you are presumably paying back capital as well as interest on your tesco loan?

Assuming that you pay back the loan over a similar period, and this is evenly done then the average balance and savings will be half that, so saving £300 gross and £200 net.

You need to make sure it is paid back though, if you don't it could well cost you a lot more than leaving the loan to be paid off.

sarahscott32

brilliant, thanks for the info
very much appreciated!
yes im paying £386 per month on the loan.... so capital coming down all the time...
you still think roughly £200-£300 saving over the 18 months?...if so i guess its worth the hassle doing...?

BE95

sarahscott32 wrote: »

brilliant, thanks for the info
very much appreciated!
yes im paying £386 per month on the loan.... so capital coming down all the time...
you still think roughly £200-£300 saving over the 18 months?...if so i guess its worth the hassle doing...?

By my calculations for a £6k loan at 6% vs £6k CC with 1.69% fee.
Loan: Monthly payments of £386 - Payment complete month 17 - Total interest £261.76
CC: Monthly payments of £386 - Payment complete month 15 - Total fee £101.40

Savings of £160.36 over the term.

You have to bear in mind a few more things:
1. You may not get the credit limit required on the credit card.
2. You may not get the credit period required.
3. If you have not paid the amount back within the time you should be able to get a balance transfer.

There are probably more points but that is just my 2 pence.

sarahscott32

brilliant, thanks! for the info :money::money: