Should I move loan to 0% card?

Whoknowskt89

Hi all!

I've currently got a loan with outstanding balance of around £1760 at 11.9%Apr.

I'm on plan with overpaying to get this gone by February 2018 and should be earlier.

According to the eligibility checker the MBNA is 100%.

I have a Halifax clarity credit card which isn't 0% but is only used for online purchases and paid off straight away and I have my mortgage.

I am on 23,831 but take home 1480 a month after student loan and pension.
Should I try for the MBNA card to get my outstanding balance to 0%?

Thanks for all your assistance

fatbelly

Which mbna deal are you looking at? What's the fee?

Can you link to it?

Whoknowskt89

https://apply.mbna.co.uk/UKNeoCCapp/entry? utm_source=Money_Saving_Expert&utm_medium=Aggregators&utm_campaign=MSE&utm_content=0&sc=1OCMALLIAA008U5&mc=OCAALL00AO2&dclid=CPaD8eaVo9ICFdIC0wodmRoK-w

Not sure if that is going to link at all.
I was looking at the MBNA all rounder, as it would have to be a money transfer, 4% fee with 0% for up to 29 months.

Thanks

zenshi

How much interest would you pay in total for the remainder of the loan? Are there ant early repayments fees?

If the above totals less than the 4% transfer fee and you have the discipline to pay it off as if it were the loan, then yes do it

My daughter did exactly this with the loan for her MSc, off the top of my head she shaved a couple of years of the term and saved around £1,500 in interest

fatbelly

It's not a huge saving but it's a saving - go for it.

Whoknowskt89

It doesn't cost me a penny to over pay
I can stick to regular payments or over pay by how ever much I like.
It was 36 months from may 16 but I'm down to 18 months and with money to one side and payday on the 1St I should be down to 15 months next month.
As I'm over paying by at least £100 a month I'm unsure whether it is cost effective to move it

EssexHebridean

Get an up to date redemption figure on the loan - if the interest was front loaded it may be that the figure to pay back right now is less than the figure currently outstanding.

The other thing I would say is that if you ARE going to do the transfer, stick with your plan to get the thing paid off by February 2018. Cut up the MBNA card as soon as you get it to avoid temptation, and as soon as you have paid everything off and had confirmation of the account being at zero, close it. MBNA are horrible! The temptation is to let the payments spread over the 29 months available, but then if things change between now and then, and you end up still having a balance when the 0% finishes, the interest rate payable will knock that loan rate into insignificance!

Whoknowskt89

Thanks Essex, my plan is always to pay it off asap no matter if it's in the form of a loan or credit card.
Like your diary (I've read a few pages here and there) I want to move eventually and I can't save for my all selling /moving /solicitors /valuation etc fees while I have a loan on top of me!

Whoknowskt89

Redemption figure as of today is 1771.40.

Saving 151.06 of interest according to this.

I've got my standard 105.41 plus 100 from next month going over on the 1St plus unless anything unexpected comes up, another 90 to send over as well
(£295.41)

EssexHebridean

Yep - that's definitely the way to go. I've currently got a 0% card that I'm merrily chipping away at - it's got 22 months on it but I'm aiming to get it gone a LOT sooner! (Payments to mine are mostly being funded via "free money" from surveys and cashback - so there's another thought for you to boost OP's!)

Good luck with your savings for a move - I hope your planned location is less mad than ours?! :rotfl:

Whoknowskt89

Oh very! Im currently in Essex and the plan is Nottinghamshire or Leicestershire way, though I don't know the areas well!
But I can get a transfer at work and keep on the same wages and for the current value of my 1 bed flat, a 2 bed house with garden and parking....