Credit Card Debts

cazywazy

Hi, This is my first time posting a message, so sorry if this question has been asked previously...
I have 2 credit cards with a combined debt of £16k. One card has £10k and the other £6k. The latter has a higher rate of interest and therefore, from Martin's advice I believe I should deal with this card first. I have a good credit history (after checking with Experian) and therefore I plan to shift the £6k to a 0% BT credit card. Then in a couple of months shift the 10k and shift them around whilst reducing the amount owed.

Does this sound like the right approach?

Secondly looking at the best credit cards for 0% BT for 9 months I was considering the LLoyds Platinum, but when I read the T's & C's in the section 'other charges' it says it will charge 2% on BT's unless otherwise stated, but I can't find anything on the website to say the BT is free - does this mean they will charge? Martin normally indicates if there is a charge, so he's prob. right, but i don't want to get stung if I sign up ....

Does anyone know what the deal is??

Thanks

CW

GettingThere_2

Hi cazywazy

If you go to moneysupermarket.com, you can compare different credit cards for BTs with the main Ts & Cs made simple. Many companies are now charging for BTs (standard seems to be 2% / £50) cos they're not making money on their 0% deals!

There are several cards out there which don't charge a fee (e.g. Amazon, Goldfish), but most of them offer 0% for only 6 months - although I've read other posts on this fantastic site of Martin's which say that, when you're coming to the end of the 0% period, instead of automatically getting a new card, you should contact your company and tell them you're thinking of switching. Apparently some of them will extend your 0% period to avoid losing you! Never tried it myself, I'm not eligible for 0% just yet ...

Good luck with reducing the debt!

southernscouser

Hi CW and welcome to the site!

Your right in your approach in trying to pay the least possible interest and paying off the one with the highest interest first.

Just a word of caution though, when applying for new credit cards try and limit applications to say 2 a month. Multiple applications in a short space of time can have a negative affect on your rating.

What sort of rates are you paying now? It's possible that a low life of balance rate would be better for you! I think Amex are doing one for around 5%!

Just remember not to transfer anything outside of the introductory period as you will be charged high interest! (I made that mistake :doh: )

As GT suggested, check out moneysupermarket for cards without a transfer fee. I know some also won't charge a fee in the introductory period but will there after!

cazywazy

Thanks for the replies... I will do further investigating. I thought I could have one 0% BT card and one low % for life of balance ....???

Back to work : (