Credit Card Help Please - moving money

danjames20

Hi MSErs,

Any help would be appreciated with my little credit card issue.

I have around £2000 outstanding from a £3200 limit (so im well within my limits) and paying £50 a month off, but at 14.9% i was wondering if i should move to another provider? (Halifax currently) or if there's any advice anyone could offer?

thanks

YorkshireBoy

If you're happy to pay £23 interest each month leave the debt where it is.

If you'd rather this £23 came off your debt then move it to a 0% BT card. You'll probably pay a 3% fee for a long (15-16 month) 0% deal but, at 1.16% interest per month, you'll be saving money from month 4 onwards.

Source a card here: http://www.stoozing.com/0fees.php

Be careful not to apply for another HBOS run card: www.stoozing.com/cards.htm

£50 on £2,000 is only a 2.5% minimum payment. Some cards have a 3% minimum...is that a problem? If it isn't, why are you only paying 2.5% now?

danjames20

Thanks for the advice!!!, yeah i looked at a few cards but got confused by it all, £50 really at the moment is the maximum i can pay really, great to know i can save from month 4

Barclaycard Platinum with BT
0% interest on balance transfers for 14 months from opening your account (2.9% handling fee applies).
0% interest on purchases for three months from opening your account.
14.9% APR typical (variable)

How does that one sound do you think?

with only 3 months 0% purchases im a bit unsure, as its for business purchases a lot of the time so these can be pretty big items

YorkshireBoy

danjames20 wrote: »

£50 really at the moment is the maximum i can pay really

That will cut your options down. Make sure you check the minimum payments before applying anywhere.

How does that one sound do you think?

Not as good as their 'One Pulse with BT' which is identical (in a BT sense) but only charges a 2.5% fee. To be honest though, I'd go for the Virgin Money card with it's 16 months 0% for a 2.98% BT fee. The minimum payment is only £25 so you'll have to make an additional payment each month manually (if you go with a direct debit...which I'd highly recommend) to reduce the debt faster.

with only 3 months 0% purchases im a bit unsure, as its for business purchases a lot of the time so these can be pretty big items

Never, ever, mix purchases and BT's on the same card. Take out a new, and separate, 0% card for purchases, or use your Halifax card once cleared by the BT.

danjames20

thanks again i have to wait until february for that one i guess (im 22 and it says minimum is 23) but i will be keeping an eye on it

i'll do as you said and keep the halifax one for purchases once ive moved it over i think

YorkshireBoy

danjames20 wrote: »

thanks again i have to wait until february for that one i guess (im 22 and it says minimum is 23) but i will be keeping an eye on it

If you wait, you'll have paid over £60 in interest by then. Pick another card now.

NickX

I agree that an MBNA run card such as the Virgin range is your best bet because of the low Minimum Payments of £25.

Just remember to get a plan in place to handle the debt before the 0% promotion expires otherwise you will end up paying an extortionate variable rate which can be as much as 34.9% with MBNA.

Good Luck.

danjames20

what about....Egg, 16.9% apr, 0% interest until december 2009 on balances transferred before 1 march 2009 3% fee?

sorry to keep asking but im really quite useless at this

YorkshireBoy

danjames20 wrote: »

what about....Egg, 16.9% apr, 0% interest until december 2009 on balances transferred before 1 march 2009 3% fee?

Only 11 months (by the time you complete), and a more expensive BT fee...compared to the options we've discussed already!

The first link I provided earlier has a 'sort' command (click the column headers). Suggest you go first for duration, and then pick the cheapest BT fee. Keep an eye on who runs them, and obviously anything with a 3% minimum payment isn't suitable (from your earlier comment).

danjames20

Virgin looks good thanks

Typical rate 16.6% APR (variable) (1.2916% monthly)

For balance transfers, cheque transactions and money transfers we will charge interest at the rate of 0% p.a. (a year) in the first 16 months from the account opening date. After that we will charge the standard interest rate which applies to transactions of this type.

This offer only applies to transactions made within 60 days from the account opening date.

2.98% BT fee

danjames20

i've applied for virgin, hopefully i'll get it, thanks again for your help guys