Credit Card Shuffle Discussion area

AlexB_2 · 19 September 2005 at 1:23PM

I moved abroad and took my English debt with me, I have 4 credit cards or varing limitis £5K-£12.5K, all of which are just under the limit as I can only just pay a little over the minimum payment which is nearly equal to the interest charged every month so basically Im going no where fast... I would love to be able to transfer even one of these balances to a 0% but because I am no longer a UK resident I cannot apply for one of these cards... any ideas? I also read that its best to pay off the smallest balance first and not the largest am I doing it the wrong way?

YorkshireBoy · 19 September 2005 at 1:47PM

AlexB wrote:

I also read that its best to pay off the smallest balance first and not the largest am I doing it the wrong way?

I think so. The best way generally is to pay minimum payments on all cards, but throw all your spare money at the card with the highest APR.

Loads of articles on the credit card section (orange box to left of this screen) and see also the "snowball" calculator at...

http://www.whatsthecost.com/snowball.aspx

Innys · 19 September 2005 at 2:10PM

I notice this guide was updated on Friday. Does anyone know what has changed in the article? Martin - for future reference - perhaps it would be an idea to highlight that part of an existing article that has been updated? or is that already done and I've missed it???

MSE_Martin · 19 September 2005 at 3:25PM

Innys:

This is a completely re-written article. It's explained in a new way to try and make it easier to read, and a few small technical changes are also there about how debt shifting works, also the research on which cards offer what, is completley new and up to date.

Margaret_Millne · 19 September 2005 at 3:37PM

Martin, you say in your article Barclaycard offers existing customers 6.9% until debt paid off. I rang them just a few days ago, asking for this, and was told no balance transfer facility was available to me at all, at any rate, despite having lots of credit limit available. I told them to reduce my credit limit then, which they did without argument. Bit late for this one now, but any tips on how to handle it better next time?

By the way I have never defaulted on any payment with any card provider ever, nor gone over my credit limit.

MSE_Martin · 19 September 2005 at 6:24PM

I'd try again Margaret - the key to these things is they are typical rates and no individual customer is guaranteed to get it

Clariman · 19 September 2005 at 6:30PM

MSE_Martin wrote:

I'd try again Margaret - the key to these things is they are typical rates and no individual customer is guaranteed to get it

Martin is correct (of course !). IIRC, the ruling is that at least 66% of customers must be offered the "typical rate", otherwise they can not advertise it as such, so it does offer some guidance on the rate that you may be offered.

Clariman

dixi_3 · 8 March 2006 at 10:36PM

Hi

I have no balance on a virgin card, after transfering it a few months ago to a cheaper rate HSBC card (which low rate of (about 5.6% APR) is due to run out in next month or two).

Virgin have now written to me offering to take balance transfers at a rate of 2.5% per annum until Sep 06. Is this the same as 2.5% APR? If I take up the offer there is also a fee of 2% (max of £35 I think).. is it worth it?

Just like to add also, that a few months back I have been refused new 0% cards a couple of times, even though I have never defaulted on the cards I have, so I dont want to apply for a new card, but would rather shuffle what I have.

currently I have nil balance on the following:

Virgin
Capital One
Mint

and £4,500 on HSBC
and £1.400 on Tesco

thanks for any advice or info in advance

dixi

grumbler · 8 March 2006 at 10:57PM

dixi wrote:

Virgin have now written to me offering to take balance transfers at a rate of 2.5% per annum until Sep 06. Is this the same as 2.5% APR?

I am 99% sure that yes. I think they call it 'per annum' because by definition the APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee (in your case BT fee).

VDG · 8 September 2006 at 1:39PM

Hi Martin

I have around £420 outstanding on my HSBC credit card and £5,000 - which is the maximum amount I can borrow - on a flexi loan (also with HSBC)... Originally I was in overdraft on my current account and I had a balance on my credit card, so to avoid paying such high interest rates I "paid" those balances off using my flexiloan.

I don't have any other credit cards and I don't really want to get another one, I just need to find a way to somehow reduce the interest I'm paying to enable me to pay this off sooner...

Is there anything I can do to reduce my interest rates here?

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