Using 0% on Purchases to Transfer Balance!?

jules235

Hi,
In order to get a longer 0% deal on balance transfers from MBNA I need to clear the existing debt. Somebody is possibly prepared to lend me the money to do this, but I've just got a 0% deal on purchases only from Capital One and this would only work if I can use it to pay the person lending me the money. Is there a way of transferring to them without it seeming like a balance transfer!?

Thanks.

agsnu

You could pay them via PayPal or something, but of course that would incur a PayPal fee.

YorkshireBoy

How trusting are they?

They could pay off your card directly (details on the back of your statement) and then you super balance transfer more than you need (at your 0% rate), with the extra being repaid to them from your current account...assuming of course you have enough credit limit?).

They might have to wait two weeks or so for their money back.

jules235

I'm not quite sure what a super balance transfer is I'm afraid. The trouble is I'm juggling quite a few cards and, once I've cleared the MBNA debt, I need to transfer 2 other cards' debts to the MBNA card (as their 0% deals are coming to an end). This will take me to my new MBNA limit. They are very trusting and wouldn't mind waiting 2 weeks for the money, but maybe paying via Paypal is the best bet then?

jonesMUFCforever

Jules how close to your limit?
Remember most have a limit of 95% of available credit limit to BT.

jules235

The 'limit' I meant was the absolute 95% allowable. :-( But thanks!

YorkshireBoy

How about...

Friend pays off the MBNA card.
You then super balance transfer (pay funds into your current account at 0%) 95% of your limit to your MBNA card.
You pay your friend back from your current account.
You settle as much as you can of your other cards' debt from your current account.
Once you've made your first (approx 3%) minimum payment on MBNA, you ask for another (95% of the remaining 5%) SBT from your current account.
You then make any mop up payments to your other cards.

You will end up with around 99.xx% used credit on MBNA, and a little interest bearing debt elsewhere.

Whilst the MBNA minimum payment is £5 (or £25?), throw all your spare money at your interest bearing cards.

Workable?

jules235

Thanks! If I follow that correctly, you mean my friend would pay off MBNA, then I would transfer 95% to my current account and pay him back from that. The trouble is, there then wouldn't be much at all to pay off the other cards? I owe about £3,000 on them and want to avoid interest if I can. That was why I wanted to try to use this new 0% on purchases Capital One card if I could. My minimum payment for MBNA is £25 and I'm just about managing to pay the minimum payments on all my cards - having recently forked out to set up a business. Do you think the one off fee to Pay Pal would be better?

YorkshireBoy

I'm not familiar with PayPal, or it's fees. How much are they?...Who pays them?...you or the recipient?

Also, how would Capital One treat the payment?...a purchase or a cash advance?

jules235

I'm not sure but I think the fees would be astronomical - about £103 ?? I think the recipient pays them but I would have to pay him back. I'm hoping Capital One would treat it as a purchase? The only other thing I can think of is trying to get a large credit limit on a low interest (for the life of the debt)card so that I can transfer a large amount of my debt to that? It's getting harder to be a tart as time goes on! :-)

jules235

Actually it would be £80.