Managing Loans

[AntennaMan]

Hi everyone

I have a personal loan @ 17% and my credit card has a rate of 9%.

I have access to both accounts via online banking. Can I transfer funds from my cc account to my loan account and then pay off the cc at the lower rate. Repeat until load is payed in full? Will the bank allow this?

Thanks

 

[seanyp00h]

Yes

 

[LaraC]

It will not help unless you settle the outstanding amount on the personal loan.

Also look at the period you are allowed to pay back on the credit card.

 

[AntennaMan]

It will not help unless you settle the outstanding amount on the personal loan.

Also look at the period you are allowed to pay back on the credit card.

Just in case I wasn't clear enough. I want to pay off the loan. My cc interest is lower than my loan interest. I therefore want to transfer money (in manageable chunks, say R10 000 at a time) from my cc to my loan, thereby lowering my loan amount. Now I pay off the cc at the lower interest rate. Repeat until loan is paid up. I hope that clears it up