Student loan

Lewis97
Lewis97 Posts: 1 Newbie
edited 24 October 2022 at 9:23AM in Student MoneySaving
Given the new interest rate being added to student loans would it be a good idea to pay it off.

i have a balance for £2,700. Earn £50,000 per year and have 25 years until the loan is wiped off.

rather than keep paying it off out my wage would I be better off to get a 0% credit card and pay it off at £150 a month for 18month? 

Comments

  • silvercar
    silvercar Posts: 46,739
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    You haven’t said which loan type you have for a detailed calculation, but broadly speaking you will have cleared it in under 2 years if you carry on with the current payments. Transferring to a 0% credit card would mean no interest so a saving of probably around £100.

    be careful of the credit card terms - do they charge a percentage if you want to withdraw a lump sum or cash? You may be better using the credit card for all your expenditure to build up the balance.
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