Reducing Loan Interest and Paying off Early

CallumJ94

Hi,

I have had quite a lot of issues before with debts, loans and overdrafts, to bridge the gaps in my spending on a very low wage, before eventually consolidating them in to one unsecured loan. The total debt is for £7000 before interest, 15.3% interest, with £195.88 repayments, with another 42 months left to repay.

Having changed jobs in the summer of 2016, my wages have increased quite a bit, however because I am on a commission based job, my salary can be anywhere between £1200 and £2100, so monthly spending and saving can be an issue. I can be strict with money and budget.

At the moment I do have a 0% credit card used for large purchases only, i.e. car insurance - I do not use this for every day spending. Repayments are for around 12 months at £80

I am wondering if there is anyway to reduce down the amount of interest being paid, by say taking advantage of a 0% money transfer card, and paying a small transaction fee, and spreading it out over their 0% offer period? There are no fees for ending the loan early. Would this be the best option or would it be to stick it out with the loan. What would be the best option to go for? My credit score is fair.

Have I missed anything?

I would love to be debt free, apart from the credit card as its managed, by the middle of 2018.

If any one has any advice or tips on how best to go about this. I would be forever grateful.

Kind Regards

Callum

[Deleted User]

A money transfer option would work, if you can get one.

Try an eligibility checker.

Money_Rollercoaster

There's nothing stopping you getting a settlement figure from the loan provider. If you do that, you'll know exactly how much you will need to fund through other means.


Only switch the debt to a credit card if A. you're not going to use the card for anything else and B. you're confident that you can afford to clear the CC debt within the promotional period.


I cleared a loan and transferred it to a CC myself and saved hundreds in interest and ended up paying it off sooner than the original loan term. Win win.