Plan to reduce interest payment and be debt free this year - need your thoughts

scott1601

Hi,

Been thinking about how to clear my debts this year and need some thoughts on this.

I am close to paying my credit card off but i also have a loan i needed to take out when my car was written off. As my credit score has been poor historically (getting better every month the interest rates on these isn't the best.

I was thinking of asking for an early settlement figure on my loan and paying this using my credit card, then moving to a 0% balance transfer and clearing the card before the 0% period ends

Will this work? Has anyone done something similar?

Thanks in advance

Scott

EssexHebridean

Have a read of the money tips email this week - I believe there was an article in there about tackling interest rates re loans and using 0% cards instead. Have you checked how your eligibility for money transfer cards is looking? The MSE Credit Club will help you there. be very careful using a card to pay the loan without having the 0% vehicle in place ready though - if you do this and then get refused you may find yourself in a worse position.

As always though I'll say your first step is an SOA (Statement of Affairs) - you'll find the link to the calculator in my signature - this will give you a proper budget to work to and also help you to see where you might be able to make savings to more quickly pay off the debt. I';ll suggest you make sure that you build an emergency fund too - as you've discovered it can be expensive without one!