Can I stooze with my loan ??

BabyDragon_2

Can someone confirm my thinking please?

I understand this is not for everybody and involves being on the ball but my thinking is this....

I have a flexible loan of £9k, It's not zero percent so I am not thinking of doing the same as the 0% cards (I'm on low income so chances of getting another credit card in addition to existing ones I have is slim I would think) but it lead me to think about borrowing the money for say 3 weeks of every month - sticking into my savings account then when it's due to be paid transfer it back. Let it settle and get to zero, after a few days repeat the process?

So I know it's messing about more than most would want to but even at only 4.3% Net interest (for my linked savings account that has quick tunraround) for say 25 days a month = £25 quid a month!

Does that make sense - that would work wouldn't it?

I know £25 a month doesn't seem much but it would make a difference to my income, pay another bill etc for a few clicks each month?? :T

CannyJock

You have a 9K overdraft facility to transfer the loan onto?

YorkshireBoy

BabyDragon wrote: »

It's not zero percent

Is it less than 4.3% APR?

BabyDragon_2

No - it's called a flexible loan but it acts like an overdraft. I can borrow as much or as little of the 9k as I wish and pay it back as little or much as I want when I want- the interest rate is at 15% or something so I wouldn't want to keep the money out for longer than the month and get stung with the interest.

I had to get me out of trouble when money was a lot tighter and I left my last job - I had it maxed out and was living off it at one point but thankfully I cleared it about 12 months ago.


But I thought even the money borrowed in small bursts, the daily interest earnt while its in my savings would add up?

YorkshireBoy

BabyDragon wrote: »

No - it's called a flexible loan but it acts like an overdraft. I can borrow as much or as little of the 9k as I wish and pay it back as little or much as I want when I want- the interest rate is at 15% or something so I wouldn't want to keep the money out for longer than the month and get stung with the interest.

Don't you incur daily interest on the loan whilst you're using it?

If you do it'll be costing you circa 1.2408% per month...and you'll only be getting 0.35% for a full month in your savings account.

BabyDragon_2

A Very good thought YorkshireBoy!!! I hadn't checked that - I checked my savings was daily earning interest never thought about daily paying interest too DOH!!

Thank you - see it was worth me posting - I thought it might be too good to be true - I was thinking it was like a credit card - pay it off and pay no interest DOH!!!