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which card
Thomas.Brawn
Posts: 3 Newbie
Hi Everyone,
I've currently got a £10,500 loan with Tesco at 9.9% paying £205.88 per Month over 5 Years. I used this to buy and insure a van 9 months ago for a load of work i had in. Since then the work has dried up and I have sold the van for £6,500 and my Tesco Loan settlement figure is £8,770.96.
What i would like to do is use a 0% balance transfer card to shift the remaining £2,270.96 (Or more) to either a 12 month (£189.25 /Month) or a 24 Month (£94.62/Month) payment so i can save myself almost £1800 compared to paying the full £12,352.80 over the remaining 4 Years 3 Months.
However I have never used a 0% balance transfer card before, and I've heard its tricky to do this with loans. What I need to understand is if this is possible or if it is exclusive to only credit card balance transfers.
Just as a disclaimer, I can afford the monthly repayments on the tesco loan, I just want to clear this debt and have more monthly spending money rather than having a big load of cash sitting around.
Let me know if anyone can help!
Thanks
I've currently got a £10,500 loan with Tesco at 9.9% paying £205.88 per Month over 5 Years. I used this to buy and insure a van 9 months ago for a load of work i had in. Since then the work has dried up and I have sold the van for £6,500 and my Tesco Loan settlement figure is £8,770.96.
What i would like to do is use a 0% balance transfer card to shift the remaining £2,270.96 (Or more) to either a 12 month (£189.25 /Month) or a 24 Month (£94.62/Month) payment so i can save myself almost £1800 compared to paying the full £12,352.80 over the remaining 4 Years 3 Months.
However I have never used a 0% balance transfer card before, and I've heard its tricky to do this with loans. What I need to understand is if this is possible or if it is exclusive to only credit card balance transfers.
Just as a disclaimer, I can afford the monthly repayments on the tesco loan, I just want to clear this debt and have more monthly spending money rather than having a big load of cash sitting around.
Let me know if anyone can help!
Thanks
0
Comments
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You can't.
You would need a money transfer card so that you can put the cash into your current account.
However, given your current debt, the high rate and the reduction in income,, you may struggle to get one. Try an eligibility checker first.0 -
Hi zx81,
thanks for the quick reply, So just to be clear it wouldn't be a balance transfer card it would just be a spending card? I just want to get the definitions correct.0 -
No. Not a purchases card,
A money transfer card.0 -
Hi,
Your post has been moved from the stepchange debt advisors thread, to a new one.
We do encourage you to post, but please only post in that thread if you have a specific question for a stepchange debt advisor.
Thanks very much.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Money transfer cards are here
https://www.moneysavingexpert.com/credit-cards/money-transfers/
and eligibility checker here
https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.82184470.1806744655.1566144537-370800224.15073057290 -
Will your loan allow overpayments? If so, and you pay off the £6500 you have you will save a lot on interest even if you can't transfer the rest to 0%. Also once this information has filtered through to your credit report you may be more likely to be accepted for a good card as your total debt will be lower.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0
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