Balance Transfers - What is the best plan of action now ?

jules-2005

We are trying to do something positive and pay off our debts before we hit our 40's (I'm 33, hubby is 32). I'm fed up of sticking my neck in the sand and trying to forget about the debt ! I'm very new to swapping cards around and "playing" the system so I hope you don't mind me asking questions.

I applied online on Friday for a Barclaycard 0% Balance Transfer for me and one for for hubby as we're trying to transfer some money off my goldfish card. I was refused due to the amount of credit against my name (10k with goldfish) but hubby has got one with a limit of £3500 so we will transfer £3000 off the goldfish to this account.

Ideally we would like to clear as much off the goldfish as possible onto 0% interest and the swap the debts around when the 0% interest expires

Is it worth hubby applying for another card with someone else with 0% interest for 9/10 months. If we get one then transfer for example another £3000. then my goldfish will be down to approx £4000. Could I apply for a card with 0% interest and hopefully not be refused for the amount of credit against my name since it would be down by £6000?

We have no intention of spending any money on these cards, just transferring balances from the goldfish. We're just trying to pay off as much debt as possible.
We can pay £300 - £350 per month maximum at the moment.

Not sure if this is relevant but we can remortgage in July (desperately needed as we're on a high rate, hubby had just gone self employed and I had at the time something nasty on my credit record which has now gone) so we don't want too many searches on our records that would prevent us changing our mortgage.

I have posted a similar message on the end of the barclaycard thread but thought I'd start a new post as I'd gone off topic.

Thanks for any advice
Jules

sicker

(Personal opinion) I would apply to Captal One for a 0% balance transfer card and ask on the application form for a balance transfer of £7500 to clear 'my' Goldfish card. You could be lucky and get the full transfer, maybe a partial transfer (still helpful) or you could be refused a card.

Best of luck

John

mountainofdebt

I would wait until the transfer has been completed between your hubby's barclaycard and your goldfish card.

Then reduce the credit limit on your goldfish card to cover the balance and any potential interest - give yourself say £250 space. Wait a month or two so that your credit records have a chance to be updated.

Then apply for a 0% deal in your name. When you get accepted make the transfer and once it has been completed, again reduce the limit on your goldfish card.

The reason for reducing the limit is the credit companies look at the amount of potential credit you have not necessarily the balance you have on your card.

It would also be worth you reducing your credit limit as you clear the balance for this very reason as well as this will help you get further deals when your present deal runs out

jules-2005

Thank you for your replies. Hubby activated his card last night and transferred £3000 from my goldfish in less than 5 minutes. I think we'll play the waiting game for a while and get my limit down before we/I apply for any more cards.
Just a thought about the refusal of my barclay card. I have a littlewoods account with up to £1200 credit limit on it, and an Adams card with up to £1700 credit limit. Neither of which is being used. I presume by asking them to reduce my credit limits would also help my credit score. I didn't realise how much credit I could potentially have (not that I'd use it)

mountainofdebt

My advice would be if you don't use it then there's no need to have it.

As I said the companies have finally decided to use this as part of their lending decision making which, depending on your point of view is either a good or bad thing

mountainofdebt

Jules,

If its any comfort I've just had a look at my NEXT statement and was gobsmacked to see that I had a credit limit of £3600!!!

So I've just phoned them up and reduced it to £400.....the guy had to repeat my request twice as he thought he was mis hearing and told me he doesn't had a phone asking to decrease the limit before - well's there the first time for everything!!!

He even had to go through to the credit control dept as he obviously wasn't sure what he needed to do ....but at the end of the day I've reduced my potential credit by £3,200!!!

jules-2005

I've only got £300 limit on my Next account which is a good thing ! I could run my Next account up to silly amounts with 3 kids and a husband who loves Next clothes.

I think its gobsmacking how much credit I have been "given" to spend. I didn't notice the Littlewoods or the Adams limits go up. I've just checked some other accounts with catalogues when I've just used them as a one off with £15 off your first order or I've got a freebie (Daxon being a good example recently with the free robulux fan) and they've all got £300 - £400 credit limit as well.

Chadsman

Jules, are both you and hubby on the electoral roll? If not having your names included would significantly imrove your credit rating.
:beer: