Balance transfers on a debt management plan

CM106 · 5 July 2017 at 7:01PM

My husband is currently on a debt management plan, he's paying a monthly amount to step change who then distribute the money to his creditors. His debts are a combination of credit cards and loans. I've been reading a lot about 0% balance transfer credit cards. I wondered whether I could apply for a credit card and then transfer his remaining balances onto it? Do the debts and the credit card need to be in the same name? If so, can you also transfer loan balances or just credit card balances? Any help would be much appreciated, thanks

[Deleted User] · 5 July 2017 at 7:22PM

You can. They would become your debts.

For loans, you need a money transfer option.

Westminster · 5 July 2017 at 8:04PM

Are any of his DMP accounts already 0% interest - this is typical after a few months.

CM106 · 5 July 2017 at 10:05PM

Most of them are but there's one loan that is still charging interest and that's the largest portion of the debt.

boo_star · 5 July 2017 at 10:17PM

CM106 wrote: »

Most of them are but there's one loan that is still charging interest and that's the largest portion of the debt.

Unless the credit card also offers 0% money transfers then he's unlikely to be able to balance transfer to a loan account.

And if he's on a DMP his credit report is likely to be completely shot so he's unlikely to even be offered a 0% balance transfer.

You can always try, but don't be surprised if he gets declined.

CM106 · 5 July 2017 at 10:28PM

I was looking to see if I could put the interest free credit card in my name but it's not looking like a viable option.

MallyGirl · 6 July 2017 at 9:38AM

you can, if you are happy to become liable for his debt.

If you take out a balance transfer card and register for online banking then all you will be asked for is the credit card number of the one to receive the transfer. If you do it by phone then they will ask if the target card is in your name and then often will refuse if it isn't. You cannot balance transfer to a loan.

If you take out a card with a money transfer deal then the money will land in your bank account and you can do what you like with it. This is the way to pay off a loan if someone will let you have it

lynz68 · 6 July 2017 at 4:42PM

The other issue may well be that you could mess up his DMP. Stepchange would probably look to distribute the money evenly among all creditors as you can't show preference to one creditor over another.

They could cancel his DMP of course there is no reason why you can't manage your own DMP but you would have to be confident that you could maintain payments and not fall into old habits.

Chrysalis · 7 July 2017 at 2:02PM

note my tesco cards, say I must transfer from cards in my name.

however virgin money and barclaycard dont seem to have that restriction.

molerat · 7 July 2017 at 2:53PM

You do need to get a limit high enough to be able to transfer all the outstanding debt onto it as you will be clearing the debts and cannot favour one debt over another.

Balance transfers on a debt management plan

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free