Graduate Loan

BAGW1806

Hi,

I took out a graduate loan as advised by Lloyds a couple of years ago now got £7,500. It's going okay and I pay back £167 a month. However I notice that the interest charge every month is always between £55 and £65 roughly. Should I think about doing a money transfer from a 0% card? I can close the loan if I have enough money in my account and I have roughly £5000 left to pay so I will save roughly £1000 on interest if I do this but unsure as to what's best. Thanks!

Willing2Learn

Hi and welcome to the forum

Taking out a money transfer card on a 0% promotion is a very wise move. Just remember not to spend on purchases on the card, unless you can pay the full balance off, at the end of the month.

[Deleted User]

The interest drops as the balance goes down.

A money transfer idea can potentially put the debt at 0%, but you will need an exit strategy so it doesn't revert to a much higher standard APR.

foxy-stoat

If you double your payments after using the money transfer card you could clear the debt in 2 years, otherwise you will need another card to balance transfer the remaining debt once the intro period is over.

jonesMUFCforever

BAGW1806 wrote: »

Hi,

I took out a graduate loan as advised by Lloyds a couple of years ago now got £7,500. It's going okay and I pay back £167 a month. However I notice that the interest charge every month is always between £55 and £65 roughly. Should I think about doing a money transfer from a 0% card? I can close the loan if I have enough money in my account and I have roughly £5000 left to pay so I will save roughly £1000 on interest if I do this but unsure as to what's best. Thanks!

What is the rate on the loan?
A couple of things to consider - will you get a high enough limit on a new card?
Assuming a 3% charge for a money transfer card (balance transfer won't work) your debt has gone up from £7500 to £7725 - will you get a card with a long enough promotional period? Monthly repayments for 3 years will be £215 - more than you are paying now.
If the loan rate is relatively low then I would instead consider overpaying when I had some spare cash to reduce the debt and time it takes to repay.
This ultimately may work out cheaper for you.