Pay debt with Credit Card?

aidso

Thanks for the replies. Just to clarify a few things:
The debt is with a recovery agency, as a loan was taken out and hasnt been paid back and therefore the recovery agency is now wanting the money .Therefore i would not be transferring the money, but simply paying the debt with the credit card (note i mentioned nothing in my original post about balance transfers).
About me: I am in a pretty "successful position" and would be able to pay a sizeable amount of the amount right away - without the need for it to be paid back and wouldnt have any ill feeling towards the family memeber as someone suggested above.

Now back on topic. My original question was can i used a new Credit Card with the 0% interest rate for 10 months like Halifax One or M&S to PAY the amount right away and then pay the money back to the Card firm. I would then change cards to someone else after 10months and continue to do so until the amount was paid? I'm thinking from Cocktails post that they wont allow this as the debt is an advance and not a purchase.

NickX

aidso wrote: »

Now back on topic. My original question was can i used a new Credit Card with the 0% interest rate for 10 months like Halifax One or M&S to PAY the amount right away and then pay the money back to the Card firm. I would then change cards to someone else after 10months and continue to do so until the amount was paid? I'm thinking from Cocktails post that they wont allow this as the debt is an advance and not a purchase.

You can do this provided the DCA will accept Credit Card payments. Have you checked with them ?

I don't know for sure, but I doubt this would be classed as a Cash advance.

Good Luck.

NickX

Been thinking about this and I wouldn't give a DCA your Credit Card details.

They are an unscrupulous bunch and having your Card details gives them an upper hand.

If you can get a card that offers SBT (Super Balance Transfer) capability you can transfer the funds direct to your Bank Account and pay the DCA from there.

Also get it in writing from the DCA that the debt is settled in full. You don't want them coming back for more.

Good Luck.

YorkshireBoy

I would most definitely NOT be giving my card details to a debt recovery company for a debt I did not owe...under any circumstances!

I would go the SBT route (and pay with cash I'd obtained at 0%) I intimated earlier in the thread.


EDIT: pipped at the post by NickX! :beer:

aidso

NickX wrote: »

Been thinking about this and I wouldn't give a DCA your Credit Card details.

They are an unscrupulous bunch and having your Card details gives them an upper hand.

If you can get a card that offers SBT (Super Balance Transfer) capability you can transfer the funds direct to your Bank Account and pay the DCA from there.

Also get it in writing from the DCA that the debt is settled in full. You don't want them coming back for more.

Good Luck.

Eek I see what you mean about them having my details. By SBT do you mean a card that offers a limit of £3000 ( i keep using £3k as thats the figure i see most) and i can "widthdraw" that £3k from the card immediately and put this into my bank account. And then pay the DCA from my account instead of the card?

Or is the SBT a loan instead of a Credit Card?

YorkshireBoy

SBT, or Super Balance Transfer, cards allow the transfer of a (ficticious) overdraft to the card (ie they send cash to your current account), whereas ordinary BT cards only allow other credit card balances to be transferred.

There are fees (typically 3%) involved, but you'll get up to 16 months 0% on the amount transferred.

See:

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards

http://www.stoozing.com/sbt.php

http://www.stoozing.com/g_quickstooz.html (ignore the savings account detail)


Read up, and come back with any other questions you have.

aidso

Thanks Yorkshire this sounds awesome and is exactly the sort of thing i am after. One thing im unsure about is the column that says fee. Is this a one off payment on the transfer i make? I mean for the MBNA Platinum it says 0% on balance transfers to your account if made within 90 days of opening the account, So does this mean that if i was to sign up to them, widthdraw £3000 then i have to pay 3% of that for the transfer and then i get the "loan" interest free until 2010? Have i got that right?

NickX

aidso wrote: »

One thing im unsure about is the column that says fee. Is this a one off payment on the transfer i make?

Yes the fee is a one off payment, usually around 3%.

It gets added to the total balance on the Credit Card and provided you stay within their Terms and Conditions you should benefit from 0% interest for the duration of the promotion, therefore the fee should be your only additional cost.

Good Luck.