Help with using a 0% balance transfer to settle a personal loan

TambienNoSiesta

I have a personal loan with about £2.5k left to pay, and expect the settlement figure to be slightly less.

My plan is to get a 0% balance transfer credit card, move the amount to settle the loan from an existing credit card to my bank account, and then transfer the balance to the 0% card.

Some questions:

1. Will the cash payment from CC to bank account be a balance that I can transfer?
2. Thinking about fees, I'm looking at 2.9% for the balance transfer. Will I also get charged a fee to take money from the existing credit card into my current account (my statement says that cash withdrawals carry a 3% fee)?

3% probably makes this worthwhile doing, 6% probably doesn't (apart from the fact that I expect the minimum payment on the card will be less than monthly loan payment, thus freeing up cash for something else).

born_again

Balance transfer card is no good.
You will not be able to pay off the loan with a credit card.

https://www.moneysavingexpert.com/credit-cards/money-transfers

Is what you are looking at.

 >> thus freeing up cash for something else. <<

Make that saving payback the debt quicker. Unless you also have other debts with higher interest.

[Deleted User]

born_again said:

Balance transfer card is no good.
You will not be able to pay off the loan with a credit card.

https://www.moneysavingexpert.com/credit-cards/money-transfers

Is what you are looking at.

 >> thus freeing up cash for something else. <<

Make that saving payback the debt quicker. Unless you also have other debts with higher interest.

While you're right, the OP said he was going to move funds from card A to his bank, then use a BT card B to pay off A

The question is what cost there will be for a cash transfer from Card A to his bank without it being a MT card - probably very expensive!

As per advice here OP - get a MT card if you want to pay off the card with cash borrowed from the CC company