Which method?

[okgo]

Hi guys,

I am after some advice in terms of paying a debt off.

I have a loan that currently if I carry on the monthly payments till the end that stands at £8500. It has an early repayment of around £5500 I forget the exact figure.

I am paying about 16% on this, now what I am thinking of doing it getting a card that offers enough of a limit to pay the loan off @ £5500 therefor saving me the insurance (I know) and saving me some interest, and then paying 3k I have in savings straight off that card.. followed by repayments of the last 2.5k over a year or so I guess at 0% (hopefully)

I am 20
Have just started a new job but earn about 25k
Live in rented accomodation
Have one egg credit card

Is the above a good idea? And where would you suggest I try first to obtain such a card? If there is a better way please let me know.. As I want this loan gone and I will be damned if I am paying £2500 that I dont need to.

Thanks people

[fade2grey]

Yup, I've been known to regularly use 0% credit cards to pay off loans where I can - why pay interest. Watch out for transfer fees (frequently 2.5-3% of the total - which may work out similar or more!)

As a rule of thumb, it's generally recommended to use any savings you have to pay off any debt.

Have a read of http://www.moneysavingexport.com or http://www.fool.co.uk

[okgo]

But unless I pay it in full I only reduce the £8800 down to around 5k. As poosed to paying the whole lot it costs £5500.

What kind of car would be best?

And would it be classed as a balance transfer?

Because at the monet my egg card odesnt havea big enough limit..

Any particular card issuers that are likley to fit the bill?