Credit card shuffle/balance transfers

shabbychicfan

Hi guys

I am struggling to understand Martin's credit card shuffle and have listed my cc debts but don't know what to do now (apart from call the companies and ask them if I can get cheaper rates).

My cc balances/details are as follows:

Halifax
15.9
6240
9500

Egg
15.9
8850
12500

Nationwide
17.9
4253
8360

Amex
15.9
6524
9200



Has anyone here managed to get LOB rates from any of these cards.

Also, should I BT from say Amex to leave a zero balance before calling them and asking for a LOB rate?

Sorry for being dim but I just can't get my head around this.

Shabby

OliveOyl_2

You have £25,867 on credit cards, with fairly hefty rates?
Are you up to date with payments? i.e. No late fees.

You're right, first thing is to call each company, threaten to BT away from them and see if you can get their rate lowered.

Secondly, ensure you are not spending on them and increasing your debt. You may like to think about posting an SOA (statement of affairs) by following the instructions on sticky at the top of this board. Peeps here will suggest ways to cut back so that you can increase your repayments.

You may also like to use another tool - a snowball, see whatsthecost.co.uk and it will put your debts into interest rate order, the idea being that you chuck your money at the debt with the highest rate and minimum payment the rest. This site will show you how long it would take to clear the debts.

You're in the right place for answers, but maybe more detail is needed?
Good luck

OliveOyl_2

Sorry, I see you've done an SOA

As to LOB rates, what is Martin recommending at the mo'?
I have LOB on M&S and Barclaycard, the rest are on 0% with finishing dates and that can be stressful as the date approaches :rotfl: So I am a fan of LOB

shabbychicfan

Thanks Olyve

I will call the companies - do you know if it is best to balance transfer one so that it is cleared, before calling them and asking for a LOB - thus transferring the money back at a cheaper rate?

Thanks again for your answer..

Shabby

OliveOyl_2

If you have *any* balance on a credit card, that will remain at an agreed rate. (e.g. 15.9% on your Halifax) If you have an offer for a cheaper rate and transfer more to your Halifax card, any payment you make will firstly clear the cheaper part of the debt.

eg I had £18 outstanding on my M&S card at their standard rate, which I cleared every month. I took up their offer and LOB transferred @ 3.9% on £3,000 I paid £18 off the card at the same time. And the b*ggers took £18 off the cheap rate and for the last 2 years that £18 has been incurring interest at ?17.9%? while my payments reduce the debt at 3.9% :mad: I've argued til I'm blue in the face, it was all a question of timing. I wish I'd recorded the call where the customer advisor told me I was clear & all my balance was at 3.9%. It should be gone by Christmas.

(that's just a warning, get the timing right, that might take a couple of months to do, so first, reduce the rate you're paying :money: )