C/C Money transfer for car finance

Mogley

I will start with my question: What is best to do with £225.54/month?

I have a car on finance bought on a 5 year HP finance option at 10.6%APR. I have 41 months left to pay and my balance is £8494.18. I pay £225.54/month (there is £902.96 worth of overpayments).

I have always been prepared to pay for a car on finance but after reading the stoozing board I thought there maybe a better way to pay off the car.

I have never had a credit card (although my OH half has a few with £0-£100 balances). I used the MSE credit club to see my credit file with Experian and my credit rating was fair. Eligibility for good rate cards was 95%.

So I thought lets see if I can get a money transfer card(s) to pay off the finance. Virgin offered 36months @ 0%, 2.9% fee. I speculatively input that I would want £7000 money transfer at application and I was approved with £8300 credit limit. I was shocked that I could get this in one hit :cool:.

I obtained my car finance settlement figure which is at £7154. I will use the money transfer (+£154 of my own money) to pay off the finance leaving me with a credit card debt of £7203 @ 0% for 36months. A saving of £1136.58 in interest over the remainder of the finance term:j.

I can afford £225.54/month and was wondering how best to use this money?

P.S MBNA approved me for their all-rounder card on the same day with credit limit of £7200 which I am also looking to start stoozing but that's for another day.

MallyGirl

put it into a regular saver at 5% and then use at the end to pay off before the 0% runs out

Mogley

I'm assuming that also means that if 0% balance transfers are still available in 3 years I could choose to transfer the balance and continue to generate more interest from savings knowing I have the cash there to pay it off if there are no good credit deals? I'm new to the stoozing concept so it's taking a little time to get my head around. I'm quickly realising that discipline is key!!