So, I was recently given a loan at a less than desirable APR. Circumstances at the time meant that I needed to accept the loan rather than running about applying elsewhere – plus that doesn’t look so good on your record.
Anyway, according to the Credit Club eligibility calc, I’m now 100% eligible for a Money Transfer card (not quite 0% but considerably better than loan APR).
I’ve read that using the MT card to partially pay off the loan is a good thing since you are effectively replacing an expensive debt with a less expensive one. However, even if I made a lump sum payment to my loan today, they’d still keep the payments the same – it is just the term that would reduce. So, wouldn’t that mean I’d actually end up with a continual loan payment (albeit with a shorter term) PLUS new expected payments for the MT card? I’m struggling to see why that is advantageous? Is it only worthwhile on 0%?