Current Graduate Loan - Advice needed

uconique

Dear MSE Forum Members,
Hoping you would be able to put some options to the table in regards to my current situation with the Fixed-Sum Loan Agreement.

In May 2014, not long after graduating from university, I took a Graduate Fixed-Sum Loan for £5,000.00. I was under impression that it was a good agreement and needed the money at that time.
Total repayment under the agreement is £6303.60 and is to be repaid in 60 monthly sums of £105.06 with the Annual Interest Rate as 9.52%(Fixed) and APR as 9.9%.
At the moment, the sum which left to pay is £2,263.98 which is still quite a lot due to Interest Rates during these three years of repayments.

My question is if there is any way I can go to repay the whole amount to slash the Interest rate and perhaps shift the loan to a 0% credit card? Considering that I have got a good payment history and credit score.

Thanks,

U.

Candyapple

You would need a money transfer card. Check here and then apply:
https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.166563261.286028960.1494590044-1894739122.1494583016

uconique

Thanks for the reply, Candyapple!

I've looked through my loan details again and struggling to understand if I can benefit of a money transfer card? My loan has a fixed APR, therefore the sum I owe will not change.
What can be the benefits of paying it off straight away by using a transfer card?
Also, I want to make sure I wasn't missold PPI with this loan back in 2014. I don't have any documentation stating that insurance have been sold to me.

Candyapple

The benefits of paying it off are that you are eliminating paying the £2,263.98 in interest.

As an example, if you applied for the Virgin card which is 36 months at 0% with a 2.9% fee, assuming your credit limit is large enough, you would initially have to pay £182 for the fee based on transferring £6.3k and then you have 36 months to clear your balance.

So, choice of pay £182 vs £2,263.98.

Now you could either pay a fixed sum of £175 per month knowing that by the end of the term the balance would be gone, or you could just pay the 1% minimum every month which would be £63 every month until the end of the term and then clear the end balance with a lump sum of whatever is left - or just move the balance to a new 0% card.

https://uk.virginmoney.com/virgin/credit-cards/money-transfer-cards/