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    How can i reduce my loan repayments?

    Basically, I currently have a loan with an early settlement fee of £2700. I have around 24months of £133 a month to repay at 13.3% ARP. I've been looking at balance transfers but it seems none of them apply to loans.

    Could i take a credit card, pay the loan off (IF i get accepted as im only 23) then transfer the credit card to a 0% balance transfer card?

    OR is there any other way ?

    Thanks!

    6 Comments

    tesco credit card is 0% for transfers etc for 12months

    Don't forget you need to also allow for the credit card fees.

    If you have 24 payments of £133 then thats just over £3000, then an early settlement fee of £2700!! Are you sure this is correct as most companies work of percentages (i know mine is 3% of the total amount remaining with Natwest)??

    One of the biggest things to be aware of is your credit limit, if you are nearing your maximum amount, your chance of getting a credit card to pay the loan will be lower and failed applications will impact on your credit score. Check your credit score and your amount of credit left before any applications (ensure to cancel within 30 days or will pay a monthly fee).

    radders112

    If you have 24 payments of £133 then thats just over £3000, then an early … If you have 24 payments of £133 then thats just over £3000, then an early settlement fee of £2700!! Are you sure this is correct as most companies work of percentages (i know mine is 3% of the total amount remaining with Natwest)??One of the biggest things to be aware of is your credit limit, if you are nearing your maximum amount, your chance of getting a credit card to pay the loan will be lower and failed applications will impact on your credit score. Check your credit score and your amount of credit left before any applications (ensure to cancel within 30 days or will pay a monthly fee).



    I think the OP means that instead of carrying on with usual payments costing £3100 he can settle now for a lump sum of £2700, saving £400.

    Rhianne

    I think the OP means that instead of carrying on with usual payments … I think the OP means that instead of carrying on with usual payments costing £3100 he can settle now for a lump sum of £2700, saving £400.



    https://sistasertraline.files.wordpress.com/2014/08/hf6d06d86.jpeg

    Original Poster

    radders112



    Basically this, and then obviously if i could get 0% interest i would save even more in monthly repayments.
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