Guest Posted October 26, 2015 Share Posted October 26, 2015 How dare you proclame that a participant in a forum debate is giving wrong advice when he is expressing an opinion in an open debate. If you have a different opinion to me I respect your right to express it, but I object to being told of by you or anyone else for expressing mine. How do you know what I understand? I have said in an earlier post (perhaps as "admin" you should read the posts) that the terms of the particular loan will specify conditions for early settlement. This is where you are wrong you see, mine is not an opinion, mine is based on 20 years of working as an employee of LLoyds Banking Group, and as one of the senior training consultants for Black Horse i can categorically say that based on your posts In this topic your knowledge on the subject is circumspect and the advice you are offering is wrong. The OP wasn't asking for an opinion or a debate, he was seeking advice on a loan. For yours and anyone else's information, unless you are a limited company or local government (not a conclusive list) for the purpose of a loan be it HP, PCP, or a personal loan, you are a "Consumer" and as such the way early settlements are calculated is done the same across all of the 'ownership' agreements. If you wish to settle a loan early you are entitled to a rebate of a proportion of the interest charged on the loan. 1 Quote Link to comment Share on other sites More sharing options...
Malc Edge Posted October 27, 2015 Author Share Posted October 27, 2015 Ok I have spoken to black horse. No i am not able to pay with a credit card,as I suspected. I can however pay off the balance of the loan as shown on my stament without any extra charges. I can just pay the balance. Sorry this post got a little "off track" I was only after other people opninions and yes perhaps I should have gone straight to black horse in the first place but of course they would have only told me what was best for them and not for me,hence my post. Thanks all malc 1 Quote Link to comment Share on other sites More sharing options...
sunshinetours Posted October 27, 2015 Share Posted October 27, 2015 It makes no difference what way you borrow the new money, your loan has to be paid and the balance including interest will not be reduced for an early settlement. It will go up a bit. Unless you are going to borrow the new money at a minus interest rate, you will save nothing. Ern maybe you can now see this incorrect "opinion" looks more like you stating facts and offering someone financial advice especially as you kept posting multiple times on this. And maybe Grandpa Steve might realise his "bedside manner" may need a little work 1 Quote Unless you've tried it, you simply won't understand. ..... Link to comment Share on other sites More sharing options...
Disco4 Posted October 27, 2015 Share Posted October 27, 2015 (edited) Ok I have spoken to black horse. No i am not able to pay with a credit card,as I suspected. I can however pay off the balance of the loan as shown on my stament without any extra charges. I can just pay the balance. Sorry this post got a little "off track" I was only after other people opninions and yes perhaps I should have gone straight to black horse in the first place but of course they would have only told me what was best for them and not for me,hence my post. Thanks all malc My name is Disco4 and I'm a rate tart. Not in any bad way, it's just that having a flexible mortgage and a good credit history, over the years I've loaded as much as £50k of my mortgage debt onto interest free credit cards (the term is stoozing), thus not paying interest on that part of my house loan for a year or two. It's a good way to kickstart overpaying to reduce the mortgage term. It used to be that interest free really was interest free, but nowadays the upfront fee makes for slimmer pickings (that said I've got about £8k sat on an interest free one that only needs repaying in 2018 - the 3% fee smeared across 3 years defacto quartered the cost of that lending so saves a couple of hundred quid a year). In terms of the OP's question, he's now had confirmation from BH that he can pay off the loan without penalty. As has been established, you can't pay the loan on a CC. What you can do with some CC deals though. ...you have to check the terms and the balance transfer fee is usually a bit higher. ..is do a balance transfer to a bank account (*). You could then take the money in the bank account to pay off the loan. The things to watch out for are; a) Do the maths carefully - a typical BT fee on a CC that'll allow you to pay into a bank account is around 4%. You need to weigh up the saving you'll make, keeping in mind that you'll pay 4% of the debt now, versus with the loan would be paying the 7. 5% on a reducing amount as you make payments. b ) Look carefully at the minimum payment. It varies considerably between cards, and on one where it's quite high, the "benefit" of having the 0% deal will diminish over the period. c) Always set up a direct debit for the minimum payment because if you don't, they'll charge you a penalty and remove the 0% promotional rate, leaving you paying e. g. 15-20% on the debt. d) Never spend on the card, because in general that extra debt will accrue at the standard rate. e) Always keep tab on when the promotional rate expires, and pay off in full before then. f) Per b ), you'll be making minimum payment on the card, say 1% or 2% of the outstanding debt. This will be lower than the payment you would have made to BH. Think about what to do with the difference, because it's this which will ultimately pay off the debt. Stick it in a high interest/risk free bank account, but be careful about when you're able to get access to pay off the debt. If I'm honest, the gains possible are not that high for the OP. As a finger in the air, I'd say it's worth approx £200-250 in interest savings by doing the above - over 3 years that'd be below my "hassle" threshold. However, I can't believe that some posters question the morality and say "a deal is a deal" - the BH terms clearly allow you to pay off early, and the banks have had enough of my tax money without donating to them by paying more than is absolutely necessary. (*) I'm lucky. My current account mortgage has a credit card associated with it, which just sweeps the balance to/from my mortgage. Therefore I can do a BT to my mortgage CC, then the week after that balance will be credited to my mortgage. Means I don't need to faff about finding deals that'll credit a bank account. Edited October 27, 2015 by Disco4 1 Quote Link to comment Share on other sites More sharing options...
Durbanite Posted October 27, 2015 Share Posted October 27, 2015 As per Disco4 you can do similar when purchasing a caravan on HP. Use a CC which offers an interest free "loan" for up to 24 months to help increase your deposit thus lowering your payments and in turn lowering interest charges. When the 24 months is up and card paid up, find another card and make a lump sum paymenyt again reducing interest payments again and so on. Quote Link to comment Share on other sites More sharing options...
Ern Posted October 27, 2015 Share Posted October 27, 2015 This is where you are wrong you see, mine is not an opinion, mine is based on 20 years of working as an employee of LLoyds Banking Group, and as one of the senior training consultants for Black Horse i can categorically say that based on your posts In this topic your knowledge on the subject is circumspect and the advice you are offering is wrong. The OP wasn't asking for an opinion or a debate, he was seeking advice on a loan. For yours and anyone else's information, unless you are a limited company or local government (not a conclusive list) for the purpose of a loan be it HP, PCP, or a personal loan, you are a "Consumer" and as such the way early settlements are calculated is done the same across all of the 'ownership' agreements. If you wish to settle a loan early you are entitled to a rebate of a proportion of the interest charged on the loan. I don't mind losing a debate, I don't mind being wrong. I DO MIND being told by a forum member wearing a red "ADMIN" badge to shut up as I don't know anything. Your opinion is also an opinion. You are not an authority. You have no right to tell people to shut up, and I will not accept it. Quote Ern Link to comment Share on other sites More sharing options...
Guest Posted October 27, 2015 Share Posted October 27, 2015 I don't mind losing a debate, I don't mind being wrong. I DO MIND being told by a forum member wearing a red "ADMIN" badge to shut up as I don't know anything. Your opinion is also an opinion. You are not an authority. You have no right to tell people to shut up, and I will not accept it. I politely asked you to stop posting because you clearly did not know what you were talking about, and the advice you were posting as facts was actually your opinion. As previously stated, mine is not an opinion as actually as it is my area of expertise and is a subject that's covered on a weekly basis when we train car, caravan and motorcycle dealer staff across the country, so using you own words " I am an authority" on the subject. So whilst you state you don't mind being wrong, what you don't like is being told so! Quote Link to comment Share on other sites More sharing options...
Malc Edge Posted October 27, 2015 Author Share Posted October 27, 2015 Oh dear and I thought it was just a simple question I asked, guess i should have known better. Never quite sure why people get so worked up on forums. Quote Link to comment Share on other sites More sharing options...
Ern Posted October 27, 2015 Share Posted October 27, 2015 Oh dear and I thought it was just a simple question I asked, guess i should have known better. Never quite sure why people get so worked up on forums. I'm sorry the thread went off the rails a bit. Anyway you have sorted your issue out. Ern. 2 Quote Ern Link to comment Share on other sites More sharing options...
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