Super Balance Transfers discussion area

eddieeeeee · 18 March 2009 at 3:41PM

Hi, I'm new to loans, so not sure if I got this either...

I have a loan with lloyds, there's about 8k left on it, I want to be able to use one of these 0% cards so to shift the debt.

So do I end up free from my loan, and just owe the card with 0% money instead?

I'm guessing there's probably a penantly fee to pay lloyds for paying off early too?

koobs · 18 March 2009 at 4:28PM

Hi,

Just for clarification... Can an expert confirm.

The payable fee is x% of the amount you ask them to pay into you bank account.

eg. Bank Overdraft is £1000, and "super balance card" fee was 2% I would owe the card issuer £1020 (£1000 original debt and £20 fee)

kaisersoze_2 · 18 March 2009 at 5:31PM

eddieeeeee wrote: »

Hi, I'm new to loans, so not sure if I got this either...

I have a loan with lloyds, there's about 8k left on it, I want to be able to use one of these 0% cards so to shift the debt.

So do I end up free from my loan, and just owe the card with 0% money instead?

I'm guessing there's probably a penantly fee to pay lloyds for paying off early too?

The loan would be settled with lloyds, you are not free from it but you do just owe the card provider, be aware that 0% doesnt last forever and what ever amount is left on the card will have interest charged on it.

From lloyds website "an early settlement fee will usually apply" when paying off early

kaisersoze_2 · 18 March 2009 at 5:34PM

koobs wrote: »

Hi,

Just for clarification... Can an expert confirm.

The payable fee is x% of the amount you ask them to pay into you bank account.

eg. Bank Overdraft is £1000, and "super balance card" fee was 2% I would owe the card issuer £1020 (£1000 original debt and £20 fee)

Yep :EasterBun

boywonder_2 · 18 March 2009 at 11:53PM

hi.

i was wondering if anybody can help me. i have an overdraft of 25k and paying monthlys of about 320.
could i use the super card transfer to pay this off? and if so does this give me a certain time to pay my loan off on the card before i get wacked with the huge APR?

Does this mean i better stay with the bank?

sorry never had a card before and so dont get it!
doh!

kaisersoze_2 · 18 March 2009 at 11:57PM

boywonder wrote: »

hi.

i was wondering if anybody can help me. i have an overdraft of 25k and paying monthlys of about 320.
could i use the super card transfer to pay this off? and if so does this give me a certain time to pay my loan off on the card before i get wacked with the huge APR?

Does this mean i better stay with the bank?

sorry never had a card before and so dont get it!
doh!

You have an overdraft of £25000 :eek:

In theory yes you could if you could get a card with a big enough limit on it. It would give you a certain amount of time maybe 9 or 12 months at 0% before you get whacked with the APR.

eddieeeeee · 19 March 2009 at 9:58AM

kaisersoze wrote: »

The loan would be settled with lloyds, you are not free from it but you do just owe the card provider, be aware that 0% doesnt last forever and what ever amount is left on the card will have interest charged on it.

From lloyds website "an early settlement fee will usually apply" when paying off early

thanks for your reply.

so providing there's another card available at 0% when the other card runs out, I should be ok?

is it worth me doing this? I have about 8k left to pay on the loan.

spand42 · 19 March 2009 at 1:05PM

:embarasse I have an overdraft of £1200.00 with TSB, can someone explain simply what I would have to do and if I would be better off. I am currently paying around £20 a month in interest and not really getting on top of overdraft at all.If I could move the balance of £1200 it would relieve a lot of pressure.
Any advice greatly appreciated.:o

CraigBlas · 19 March 2009 at 5:23PM

Hi Guys. First time posting on the forums but I'm in the process of setting a super balance transfer up for myself so I though I'd share my views.

spand42:
As your situation stands at the moment, you currently owe Lloyds TSB £1200, and for that privilege you are paying them £20 p/m until your overdraft is paid off. This is an interest rate of approximately 16.6%.

What the Super Balance Transfer lets you do is shift that debt to another provider (eg MBNA) who will not charge you monthly interest for a certain period of time.

You effectively 'pay in' £1200 of MBNA's money into your TSB current account, thus clearing that debt and stopping any further interest payments to TSB (you don't have to actually pay anything in, that is all done behind the scenes).

This isn't free. MBNA will charge you a 2.9% fee, but this is a one off. Instead of paying Lloyds 16.6% interest per month for the next 12 months, you only pay one interest payment to MBNA of 2.9%, at the start.

Your total debt goes up slightly, and it's with a different provider - instead of oweing £1200 to TSB you now owe £1235 (debt + fee) to MBNA. The major plus is that as long as you clear or shift your debts by the end of MBNA's interest free period you will pay no further interest.

The other kicker is that with Lloyds you don't have to pay off any debt or interest in a given month if you don't want to. With MBNA you must pay off your minimum amount, otherwise you lose the good rate (which was the whole point!).

Hope this has made things a bit clearer for you,
--Craig

boywonder_2 · 19 March 2009 at 10:15PM

kaisersoze wrote: »

You have an overdraft of £25000 :eek:

In theory yes you could if you could get a card with a big enough limit on it. It would give you a certain amount of time maybe 9 or 12 months at 0% before you get whacked with the APR.

yep. so i think i will srtick to the bank.... but thanks for the help

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