Overpaying Tesco Bank Loan

Dobbibill

debtfreeby2020 wrote: »

When you say a money transfer deal - do you mean pay the cash into my account and use it to pay off the loan? Or can I transfer the balance of my loan to my credit card directly without accruing interest?

Sorry if that’s a dumb question. I am new to all this.

Not a dumb question at all - it's as you think a promo offer to pay cash into your current account from your credit card. It normally incurs a one off fee but then the promo is normally at 0%.

BC are known for making offers like this to existing customers. Once the balance is cleared you may (not guaranteed) get this type of offer.

Good luck with your debt busting

debtfreeby2020_3

Thanks for clearing that up! I will wait and see what happens. I hope to get the card in 6 months. If not before! Then we will see if any magical deals pop up.

debtfreeby2020_3

Edit: I hope to get the card PAID OFF in six months

dresdendave

debtfreeby2020 wrote: »

Thank you Dresdendave! I have had enough of this now. Need to get my finances in order to have a happier life. This debt is like a millstone around my neck.

Being debt free is a great feeling. Working towards it can be tough and sometimes demoralising when you seem to be missing out on things that your friends/colleagues have or are doing. Don't get downhearted as it will be worth it in the long run.

One thing I would suggest if you are living very frugally is to reward yourself occasionally. Total up all outstanding debt and every time it reduces by say £500, treat yourself to a takeaway and a bottle of wine or something along those lines.

This way you have attainable short term targets, rather than the total debt, which will seem very distant in the early days.

debtfreeby2020_3

Thanks for this excellent idea Dresden Dave! If my projections are right, that would be every couple of months.

Kithman18

You don't need to call up to overpay on your Tesco loan. If you call up initially then the advisor will ask how you want payments to be applied - you can choose to reduce the term or the monthly payments (reducing the term is more beneficial interest wise). If you're gonna make multiple overpayments then they can leave a note on your profile saying how you want it to be applied. Then you can make future payments by Faster Payment to your loan sort code and acc number,

20aday

I made an overpayment to my Tesco Bank loan late last year.

Wasn't much but it did reduce the amount I repay them monthly.

MABLE

I have managed to reduce the term of my £12,000 loan with Lloyds from 48 to 14 months in a week.

MABLE

UPDATE

Loan has now been fully paid off and cost me £6.00 in interest. Managed to find funds to cover the debt before the cooling offer ended.

MABLE

MABLE wrote: »

UPDATE

Loan has now been fully paid off and cost me £6.00 in interest. Managed to find funds to cover the debt before the cooling offer ended.

I think Lloyds are not happy with me because of this. I checked their online calculator and usually says they think I can afford to borrow 50,000 pounds sterling. Now its is saying 23,200 pounds sterling and offering me a personalised rate of 16.9% against the original apr of 3.9%,