Trying to clear debt as soon as possible!

Liver123
Liver123 Posts: 2 Newbie
in Debt-free wannabe
I am unable to get any credit or even look towards saving for a mortgage so hoping to clear my current debt asap.

I am finding it a bit complicated!

I have a loan of £13,491 with a monthly repayment of £315 with 68 months remaining. The interest is 18.9% APR.

I have savings of £2800 and have no credit cards. My only other 'debt' is a pay monthly O2 iphone.

I have no credit cards, but have heard :money: talk about balance transfer cards.

Experian says I have a 70% chance of getting a Barclaycard Platinum 35 Month Balance Transfer Credit Card. Balance Transfer Rate 0% - 35 Months, 1.85% Fee.
Purchase Rate 0% - 6 months, APR Representative, 19.9% APR

Any advice would be brilliant! Thanks.

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi Liver123 and welcome to MSE,


    Unfortunately, a new credit card is unlikely to be a solution in this case. Normally, when you do a balance transfer you are asked for details of the card that has the balance on that you wish to move. The loan is not a card, and therefore, may not meet the criteria for this. If you got a 0% interest card for new purchases then you may be able to use it to pay a lump sum off the loan, however, I worry that could be deemed as a 'cash transaction' and subject to interest charges - you would need to read all of the terms and conditions very carefully.


    If the loan is up to date, and affordable then you could try and overpay it (as long as there is no penalty for overpaying and clearing the loan early). If the loan is a struggle then you need to post a SOA to discuss other options but please be aware that if you need to do reduced payments, that will cause damage to your credit file (among other things).


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Liver123
    Liver123 Posts: 2 Newbie
    Thank you Laura that is really useful!
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
    Name Dropper First Anniversary First Post
    It's not complicated, it's really easy:

    spend less than you earn

    use the difference to overpay the loan. You can't borrow your way out of debt.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
    A money transfer card at 0% would help as the money would go into your bank which you can then pay into the loan.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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.
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