which credit card, is it a good idea?

juby_2002 · 3 September 2009 at 8:09AM

morning all,

i need to pick your brains.

hubby n i have got ourselves in a pickle. we owe littlewoods 1300 and the monthly re-payments are now too high for us to pay as hubby was made redundant.

some-one suggested on the DFW forum that i pay it off using a CC.

which one will ensure we pay max £50 per month (not alot i know but really struggling at the moment), with out paying too much interest.

sorry if i sound a bit dumb but we have never needed a credit card before.

could you also explain the basics of payments, charges etc please.

thank you, its really stressing me out as i have never really worried about money before, but now hubby has lost his job everything has been cocked up.

thanks

97trophy · 3 September 2009 at 8:10AM

try your own bank first.

juby_2002 · 3 September 2009 at 8:13AM

i bank with halifax.

are their cc ok?

CLAPTON · 3 September 2009 at 8:44AM

juby_2002 wrote: »

morning all,

i need to pick your brains.

hubby n i have got ourselves in a pickle. we owe littlewoods 1300 and the monthly re-payments are now too high for us to pay as hubby was made redundant.

some-one suggested on the DFW forum that i pay it off using a CC.

which one will ensure we pay max £50 per month (not alot i know but really struggling at the moment), with out paying too much interest.

sorry if i sound a bit dumb but we have never needed a credit card before.

could you also explain the basics of payments, charges etc please.

thank you, its really stressing me out as i have never really worried about money before, but now hubby has lost his job everything has been cocked up.

thanks

how much are you currently paying per month?..i.e. what is the minimum monthly payment?

juby_2002 · 3 September 2009 at 8:59AM

clapton- the minimum is 121 per month, this was fine and we managed when hubby was working, now though rent, utility bills and food take priority and we cant stretch to 121 per month, we can do £50.

im looking for a card with out too much interest and will allow us to pay the catalouge off and that the min payments will aroung £50, even if its less that that i will still pay £50 to clear it quicker.

any advise on whats on offer?

CLAPTON · 3 September 2009 at 9:09AM

firstly, most CC can't be used you to pay off catalogue debts directly.... have you checked the catalogue payment methods?

again you can't normally do a BT either

however some CC allow you to BT to your current account.eg. the MBNA stable of CC will allow this and they often offer 12 month 0% BT although there is a fee... then of course just use the money to pay the catalogue off in full.

you can of course simply use a CC for ordinary spending and so 'free' up money to pay the 121 per month. So this will month by month transfer the debt from the catalogue to the CC. Obvioulsy a 0% on purchase CC would be best. However be very vey careful that you don't build up a masssive CC debt... you will have to pay it back later remember and once the 0% period is over the APR can be very high.

Presumably as you have come from the debt free wannabe board you have already set up your SOA and are cutting back on all non essentials.

For details of specific cards reads martin section of CC

juby_2002 · 3 September 2009 at 9:51AM

clapton- i was thinking of doing bt into my current and the paying littlewoods off in full. what would the approx fee be on £1300.

we have had no choice than to cut back. 2 thirds of out monthly income has gone. we dont drive, dont really socialize, im not really a clothes freak. hubby used to do footie bets each week but thats stopped now.

after all our essentials monthly bills, food, gas, electric, rent, council tax, water, tv licence and insurance. we have 100 left, 28 monthly for DD school meals, 7 monthly juice/milk money.

CLAPTON · 3 September 2009 at 10:11AM

the usual fee is about 3% (but obviously check first) so 3% of 1300 is £39
make sure the CC will do a BT to your current a/c .. MBNA, Egg do

these sites might help.

http://www.moneysupermarket.com/cards/

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

juby_2002 · 3 September 2009 at 10:15AM

ok, ill check the sites out now.

thank you so much for taking the time out to help me, much appreciated.:beer:

redpete · 3 September 2009 at 1:36PM

You can look for one of the interest-free balance transfer offers. As others have said you need one that will transfer a balance to your current account. The typical 3% fee to transfer a bnalance is £39 which will be added toi your CC balance.

The CC will require a minimum repayment each month, typically 5% which would be approx £67 in the first month, this will drop each month as you pay it off and will be £50 or less after 6 months.

The interest free period varies, but you might find one for 12 months. On this the monthly payment (if you just pay the minimum) will be approx £36 at the end of the 12 months. BUT - after 12 months you will still owe approx £730 to the CC company and unless you pay it off will start paying high interest rates. You could look for another 0% CC balance transfer offer then but there's no guarantee you would be able to find one. If you keep the CC it would take approx 2yrs 3 mths to pay off if the APR is 19% and you pay at least £50 per month.

One big danger is that you might cut back on the CC repayments if things continue to be tight and hence never reduce the debt.

which credit card, is it a good idea?

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