0% money transfer to part pay loan

katie4

Hi all
I have a loan £7250 4.2% apr
I have an offer on credit card 0% for 12 months (4% fee) would it be worth using this to pay £500 (max I can do) off the loan?


Thanks

[Deleted User]

You'll save £1 in interest.

katie4

Deleted_User wrote: »

You'll save £1 in interest.

Oh really? I won't do that then, thanks

foxy-stoat

£500 x 4% (fee) = £20.00

£500 x 4.2% (interest for the year) = £21.00

If you can MT £7000 then you could save a whopping £14, but then you need to either pay it off in 12 months (£606.67 a month) or BT it to another card and shuffle it.

£7000 x 4% = £280 (fee)
£7000 x 4.2% = £294 (interest for 1 year)

4.2% isn't a bad rate for a loan.

katie4

foxy-stoat wrote: »

£500 x 4% (fee) = £20.00

£500 x 4.2% (interest for the year) = £21.00

If you can MT £7000 then you could save a whopping £14, but then you need to either pay it off in 12 months (£606.67 a month) or BT it to another card and shuffle it.

£7000 x 4% = £280 (fee)
£7000 x 4.2% = £294 (interest for 1 year)

4.2% isn't a bad rate for a loan.

Thank you for this, I will let it carry on as it is then

jonesMUFCforever

If you have any surplus funds - will the lender let you overpay without penalty>?
By doing this you can either reduce your monthly repayment or pay it off earlier - depending on the terms and conditions of your loan.

katie4

jonesMUFCforever wrote: »

If you have any surplus funds - will the lender let you overpay without penalty>?
By doing this you can either reduce your monthly repayment or pay it off earlier - depending on the terms and conditions of your loan.

Yes I think there is no penalty I will find out thank you

foxy-stoat

katie4 wrote: »

Yes I think there is no penalty I will find out thank you

I would pay everything you have in clearing the credit card debt before the loan.

katie4

foxy-stoat wrote: »

I would pay everything you have in clearing the credit card debt before the loan.

Thank you ...........................