Debt in a foreign currency

Smick100

Hi everyone,

I am pretty much on top of my finances with the exception of a credit card I took out when I was living in Ireland.

Stupidly I believed that my bank shares were rock solid (worth €30k) and didn't sell them for my wedding, instead putting most of the expenses onto my credit card. As it stands at present, my bank shares are worth €5k, although 50% are held in trust and I cannot sell them

My credit card balance is €8,500 and the APR is 12%.

I am back in the UK and earning decent money, trying to pay off as much as possible. I have paid €2,500 in the last few months. My monthly net income is about £2000 and I pay £400 for rent inc. utilities and £110 in travel.

My main worry is that the currency rate between Euro and Sterling is fluctuating so much. When I got married, the exchange rate was 68p to the Euro. It's now 80p

Do people think I should get a new UK card and balance transfer the balance over, get a loan and pay off that instead of the card or else just wait and hope the exchange rate swings the other way?

RAS

Couple of thoughts

If you transfer the whole lot, then you crystalise any losses on the current currency situation.

On the other hand, you ensure that you are not getting more currency fluctuations and currency charges.

Are you happy with that? And may it depend on what sort of APR you can get here?

If not, how about transferring half to a sterling card and paying the minimum on both cards. Then overpay the one for which the currency situation is most favourable?

Smick100

That's a great idea. Thanks a million.