Transferring a loan to a 0% credit card confusion.

DullGreyGuy

Zoobzi37 said:

In this country its the people with the most money who get the best deals. Ergo. Those who need them the least are those whom benefit the most. Those with the least actually subsidise those with the most.

Let's assume you are just talking about financial services, is there a country where that isn't the case? Most places have rules on banking to ensure savers money is safe when the bank lends it out to others which drives risk based pricing else I am both less likely to get my money back (as a bank) and I have to hold more capital to reflect that risk. 

Even Shia compliant banks in Dubai etc have interest rates being dependent on personal circumstances on their websites. 

Zoobzi37

MorningcoffeeIV said:

Zoobzi37 said:

MorningcoffeeIV said:

Zoobzi37 said:

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

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

Those with the least actually subsidise those with the most.

It's more that those who repay their debts subsidise those who don't.

But before giving up, you should consider the other option presented up-thread. Both that, or using a 0% purchases card to free up funds would save you money.

I dont quite understand the alternatives you suggest. I dont make any purchases at present for anything everyday on credit cards. I do interest free deals for large purchases but for every day spending, i pay cash for everything.

I also like to keep things simple and manageable because of my memory problems.

Its only this loan i need to sort out. Everything else is either cash or 0% at present

Zoobzi37

DullGreyGuy said:

Zoobzi37 said:

In this country its the people with the most money who get the best deals. Ergo. Those who need them the least are those whom benefit the most. Those with the least actually subsidise those with the most.

Let's assume you are just talking about financial services, is there a country where that isn't the case? Most places have rules on banking to ensure savers money is safe when the bank lends it out to others which drives risk based pricing else I am both less likely to get my money back (as a bank) and I have to hold more capital to reflect that risk. 

Even Shia compliant banks in Dubai etc have interest rates being dependent on personal circumstances on their websites. 

Empirically, in this country its always those with the least who pay the most and subsidise those with the most. Thats how the status quo gets maintained.  It keeps people firmly in their place. I am stuck with a loan agreement because my income is too low. If it was double then i could get a deal.

Such is life.

I wont find a deal that helps me. I just have to pay and get on with it. Thats life. I have lost nothing by trying.

MorningcoffeeIV

Zoobzi37 said:

MorningcoffeeIV said:

Zoobzi37 said:

MorningcoffeeIV said:

Zoobzi37 said:

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

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

Those with the least actually subsidise those with the most.

It's more that those who repay their debts subsidise those who don't.

But before giving up, you should consider the other option presented up-thread. Both that, or using a 0% purchases card to free up funds would save you money.

I dont quite understand the alternatives you suggest. I dont make any purchases at present for anything everyday on credit cards. I do interest free deals for large purchases but for every day spending, i pay cash for everything.

And if you put that spend on a 0% card, you'd be able to pay off your loan quicker and save lot of interest.

Nasqueron

Zoobzi37 said:

DullGreyGuy said:

Zoobzi37 said:

In this country its the people with the most money who get the best deals. Ergo. Those who need them the least are those whom benefit the most. Those with the least actually subsidise those with the most.

Let's assume you are just talking about financial services, is there a country where that isn't the case? Most places have rules on banking to ensure savers money is safe when the bank lends it out to others which drives risk based pricing else I am both less likely to get my money back (as a bank) and I have to hold more capital to reflect that risk. 

Even Shia compliant banks in Dubai etc have interest rates being dependent on personal circumstances on their websites. 

Empirically, in this country its always those with the least who pay the most and subsidise those with the most. Thats how the status quo gets maintained.  It keeps people firmly in their place. I am stuck with a loan agreement because my income is too low. If it was double then i could get a deal.

Such is life.

I wont find a deal that helps me. I just have to pay and get on with it. Thats life. I have lost nothing by trying.

For what it's worth, when you're talking about risk and financial services, it's based on your profile not your wealth. Yes there is the idiom that banks only lend to those who don't need the money but realistically, banks can only lend what their responsible lending rules allow them to. 

With someone who is not well off, yes a big loan might help them clear their bills but could they afford the loan repayments? What happens if they lose their low paid job and don't have a safety net? Things like that affect lending. I earn less than the UK average but have never struggled for credit as I have always been careful with money, my car PCP at ~32 was my first "real" debt other than a student loan (not counting CC which were paid back in full every month). I have utilised 0% BT Cards well, always paying them back on time and budget to ensure I never pay interest, meaning I can afford things I wouldn't be able to just paying cash.

The advice MorningCoffeeIV suggested above is good - if you were paying on a CC and transferring it to a BT at the end of the month so therefore repaying only the minimum, that would free up cash for 3 months (or maybe longer, depending on card terms) that you could pay to the loan and reduce it / reduce interest. Even a 9 month MT card would reduce your loan debt by a chunk and if it's at 0%, provided you repay the debt over the 9 months, you would pay no interest and reduce the loan thus saving you more.

Zoobzi37

MorningcoffeeIV said:

Zoobzi37 said:

MorningcoffeeIV said:

Zoobzi37 said:

MorningcoffeeIV said:

Zoobzi37 said:

Nasqueron said:

Zoobzi37 said:

DullGreyGuy said:

None allow a loan transfer. 

A Money Transfer Card is like a balance transfer card but rather than paying the money to another credit card account it allows you to pay the money into your current account. You can then use that cash to pay off your loan. 

The number of lenders offering Money Transfer Cards is much smaller than BT and limits also tend to be less generous. You can read up at https://www.moneysavingexpert.com/credit-cards/money-transfers/ 

Naturally be aware that if you don't pay off the debt in the 12 months (or whatever the duration of the offer is) that the interest you go onto is likely to be higher than whatever the current loan is.

Thanks for the link. yes the most I can get is 12 months.

At the end of the 12 months can I then transfer the amount to a standard 0% credit card?

Thanks again

IF you can get one, yes you can do the balance from the MT card to the new BT card

However, this assumes you will get one, you may not. The safe / money saving thing is to use the extra money you are getting from not paying interest to pay more on the card so it clears before the end - you must always have an exit strategy for MT/BT cards else you'll end up paying the standard APR which will be around 40% making the loan look like chickenfeed. Remember the credit assessment is done based on your existing debt, so a loan that is still running (unless you get a card with enough credit to clear it) plus the CC debt vs your earnings will count as part of the calculation so you might not get a BT card with enough limit, if you get one at all.

If you can't get an MT card though there is a way to play the system - if your BT card has say 3 months to do transfers, you spend everything you can on CC and then balance transfer off every month, pay the minimum and use the money "saved" (i.e. not actually taken from your bank) to overpay the loan. This needs discipline (to not waste the extra money) and planning e.g. pay for car insurance, fill up car regularly, do bulk buy shopping for long life products etc

I doubt i will get a MT card. I have no idea how to find them online. When i search online they just come up with standard BT cards. I could be searching forever.

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

Those with the least actually subsidise those with the most.

It's more that those who repay their debts subsidise those who don't.

But before giving up, you should consider the other option presented up-thread. Both that, or using a 0% purchases card to free up funds would save you money.

I dont quite understand the alternatives you suggest. I dont make any purchases at present for anything everyday on credit cards. I do interest free deals for large purchases but for every day spending, i pay cash for everything.

And if you put that spend on a 0% card, you'd be able to pay off your loan quicker and save lot of interest.

I must have said three times that I dont understand what you mean.

I havent a clue how doing what you say saves money as I dont pay interest at present on my purchases.

I pay cash for all of my everyday expenses. Nothing is debt.

Please explain.

MorningcoffeeIV

You use a 0% card to buy things.
You pay off the minimum each month.
You don't pay interest.
You use the money that you would have normally used to buy things in cash to pay off your loan more quickly.
You save interest.

I don't think I can explain it any better. 

Zoobzi37

MorningcoffeeIV said:

You use a 0% card to buy things.
You pay off the minimum each month.
You don't pay interest.
You use the money that you would have normally used to buy things in cash to pay off your loan more quickly.
You save interest.

I don't think I can explain it any better. 

try and be more understanding towards those who may have issues with disabilities. Intolerance is never nice.

Your method is fraught with potential issues for myself. I just want a simple system to pay off my loan. Its clear that that doesnt exist for myself.

I dont want more credit cards and dont want more complications. I already get cashback on my bills with my bank.

Thanks everyone for their help.

I have lost nothing by trying to reduce my interest in a manner that meets my needs and is within the limitations that my disabilities impose.

I would suggest that this thread get closed now as we have taken things as far as we can.

MorningcoffeeIV

Zoobzi37 said:

MorningcoffeeIV said:

You use a 0% card to buy things.
You pay off the minimum each month.
You don't pay interest.
You use the money that you would have normally used to buy things in cash to pay off your loan more quickly.
You save interest.

I don't think I can explain it any better. 

try and be more understanding towards those who may have issues with disabilities. Intolerance is never nice.

I haven't been intolerant in the slightest.  Once you explained you didn't understand 0% purchase cards, I explained it step by step.

You seem very dismissive of those giving their time to help, despite saying that people in your situation get no help.

I hope you get the help you need elsewhere.


.

Nasqueron

Unfortunately if you can't get the MT card that you want, you might as well go to the Debt Free Wannabe page on here and ask for advice on how to best focus on paying down debts