Transferring $6k Personal Loan to Credit Card

Lbraedc on 05/09/2018 - 20:30

I have a $11,000 personal loan @ 16% interest, 2 year term taken out in October 2017.

Balance currently is at $6,222. Monthly Minimum payments are $556, I currently pay $600 each month. I can afford to pay ~$1000 a month now I have a good chunk of emergency savings.

I currently have a CBA No annual fee card (Not used, worth cancelling?) + Amex Essential.

Looking at doing a BT to a credit card. The Citibank Clear Platinum, 14 Months BT @ 0% with no transfer fee, no Annual fee for the first year (Reverts to $99 after free year). If I cancel this one before the next year, the fee will not be charged and am I able to cancel this before then?

Is this my best option to reduce the interest rate or is there another way I can do this?

Forgive me as this is my first forum post.. If I need to include anything else please tell me.

Financial Credit Card Loan

Comments

  • yfu1999 on 05/09/2018 - 21:02
    -2

    why do you transfer $6000 of Personal Loan to your credit card while paying the interest of the personal loan at the same time? $3520 for two years. That is huge

  • AdosHouse on 05/09/2018 - 21:16
    +1

    Or just pay the loan off in 7 months?

  • [Deactivated] on 05/09/2018 - 22:01
    +4

    AFAIK there's no way to transfer a personal loan to a credit card. Personal loans are usually cheaper too. You've been mightily screwed on that rate what on earth did you buy? Since you're already paying extreme levels of interest I'd be looking to have no emergency savings until you've paid that off. I'd be looking to sell things to pay it off quicker.

    Worth checking if there are any early payment fees etc, but probably still worth it.

    • Easton on 05/09/2018 - 23:12
      +1

      There are ways. Citibank lets you do a balance transfer as a 'cheque to self' (not sure if this is still the case). Alternatively, do a balance transfer into a credit card that doesn't have anything owing. I did a NAB => ANZ balance transfer and was able to withdraw the cash out from the ANZ credit card using Internet banking and did not incur any fees.

  • BlueGlass on 05/09/2018 - 22:12
    +2

    I don't know if you can balance transfer from a personal loan to a credit card, but what you could do is get a 0% purchase rate card.

    the finder website has a decent card for a perhaps expensive annual fee of $129.
    https://www.finder.com.au/credit-cards/0-purchase-credit-car…

    if you put all of your daily/ongoing expenses onto the credit card, then commit your cash flow to paying off the loan, you should be able to minimise the interest payments on the loan by a decent amount. At the end of the 14 month 0% purchase rate, you could do a balance transfer to another card (after paying 2 annual fees of $129).

    your priority is getting cash into that loan. credit cards can be a tool to that objective, but you need to be disciplined.

  • garetz on 05/09/2018 - 22:15

    The only way i can recommend to do it, is take your expenses, instead of paying cash, pay by credit card, then take the cash you would of put on those expenses, and put it on that personal loan instead, slowly but surely you will pay off your personal loan, and you can pay the minimum balance on the credit card monthly. So you will in effect transfer the debt from your personal loan to your credit card with minimal expense.

    btw the terms of that loan are terrible, you should of been looking at 8-10% interest on an unsecured personal loan.

  • Spam Service on 06/09/2018 - 11:47
    +1

    Don't transfer to a credit card, just refinance your personal loan to another personal loan. If you have a decent credit history or something to secure the loan on, you should be able to get the interest rate well under 10%.

    • Hunter80 on 22/10/2018 - 19:32

      Username checks out.

  • Killerbala on 22/10/2018 - 13:54

    what you are thinking is possible. All you need to do is apply for The Citibank Clear Platinum and provide your CBA card number for balance transfer. Once you have the money in your CBA card which will be in excess assuming you have not used your CBA credit card. Then move the excess money to your CBA saving account and pay off your PL.

    Refer to this thread for detailed information and the difference is Car and in your case its a Personal loan (PL).

    https://www.ozbargain.com.au/node/366725

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