Paying off secured loan with credit card

Babylonian_2

Before I became a "money saving expert" hubby and I were bamboozled into a secured loan with First National. I've asked for a settlement figure - it will probably be around £2700.

I think the best thing to do would be to see if I could whack it on a 0% c/c - I currently have enough credit to do this on my Virgin 0% - alternatively I think I could do the 6.9% thingy on my Barclaycard - either way would be cheaper I think than carrying on with the loan is it stands for the next zillion years.

I'm a real newbie to all of thise, please could sks advise if this is going to be possible and if it really does make money saving sense? Is theer another option I haven't though of?

Thanks in advance for any help someone can give me...

YorkshireBoy

You could pay the loan of by doing a super balance transfer (SBT) from your current account and onto the Virgin CC, which will cost you £50.

You'd then need to rotate this debt round various 0% BT credit cards by standard balance transfer methods.

With an increasing number of providers charging for BT's, you may incur a 2% fee with each switch, eg every 6-9 months or so.

If you feel that you haven't the discipline/ability/credit history to manage this process effectively, then a life of balance (LOB) deal may be better for you.

Useful reading...

What is an SBT...http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1085355871,12390,

Best balance transfers...http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1107182516,76509,

Stable relationship (LOB card)...http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1107775287,62749,#Stable

payless

remember the settlement figure will likely include a penalty, ( or reduced rebate of interest already added ) you also need to compare what you actually owe / will pay over term , against what you will pay over new arrangements on the new amount.

If you have insurance on loan, with them its unlikely to cover your new debt - do you need something for new arrangement? if so cost that in also
( if insurance added to loan already - ask for rebate of unused premium)

Personally I think it might be a myth as never seen figures to prove it, but some say if you don't redeem the loan in full ( only pay off most) some firms don't charge the penalty - suppose worth exploring at least ??