Transferring Balance

[rage2021]

I have an open loan for about $8500 that was open a couple years ago but its at 8.95%. I was wondeirng what are my options to reduce the interest, btw I plan on paying it back within a year at the latest.

I talked to financial advisor at bank and he basically said theres no point in transferring because the interest rate would be higher like 13-15 % !? I dont know it seemed like he just wanted to keep it that way because it was in the best interest for the bank.

[Jucius Maximus]

The first thing you should do is verify the repayment terms of the current loan. Can you just pay it off if you have the cash? Is there any prepayment penalty? Are you forced to only pay in instalments?

If you can just pay it off without penalty, then go and find a better loan and do it! My unsecured LOC with PCF is less than that. You can get 0% for 12 months credit cards, but those can be very dangerous if you are not extremely careful with handling them.

Though I should mention that the real factor in getting it pay off more quickly is not the interest rate, it is the SIZE of payments that you are making. If you want to pay it faster, then cut out other things from your life, find ways to save money, and/or get an extra job. That is the real way in which you are going to kill the debt.

[rage2021]

Yea I can pay it off whenever I want, I actually make advance payments to try n get rid of it but if theres money to be saved on interest then why not? Im not sure if it would hurt my credit score/history though if I open up some other account.

[UrbanPoet]

Strange. O_o
MAybe you can get a credit line at a better rate...
I got mine @ Prime for $20k =) w00t.

I earn under $35k/yr too. You should shop around!

[rage2021]

I think that banker was a douche, he didnt give me any options / advice at all.

[Jucius Maximus]

I think that banker was a douche, he didnt give me any options / advice at all.

Then pay off the loan, fire the banker, and never use his services again.

[sunnyminz]

Strange. O_o
MAybe you can get a credit line at a better rate...
I got mine @ Prime for $20k =) w00t.

I earn under $35k/yr too. You should shop around!

with what bank? did you have a long history with them?

I earn a bit more than you and RBC gave me Prime +3.05 and I've been with them for 5 years!

[Donomight25]

The first thing you should do is verify the repayment terms of the current loan. Can you just pay it off if you have the cash? Is there any prepayment penalty? Are you forced to only pay in instalments?

If you can just pay it off without penalty, then go and find a better loan and do it! My unsecured LOC with PCF is less than that. You can get 0% for 12 months credit cards, but those can be very dangerous if you are not extremely careful with handling them.

Though I should mention that the real factor in getting it pay off more quickly is not the interest rate, it is the SIZE of payments that you are making. If you want to pay it faster, then cut out other things from your life, find ways to save money, and/or get an extra job. That is the real way in which you are going to kill the debt.

LOC w/ RBC @ 5.75% OAC.

but check loan terms first. 90% have an early payment clause.