How best to use the rest of my 0% CC?

nellis10

I have a CC Limit of £6300 on my Virgin CC until 11th May. At the moment my balance is £2150 leaving £4150. My abbeyloan if I was to redeem today would be £3675 (I'm rounding up actual figures for ease).

Should I get my loan onto my CC until May 2009 with a balance of £5825? It would mean I would have to find another 0% in April to ensure I still don't pay any interest other than BT Fee. I would probably be able to get the balance down to about £5000 in that time, if not lower.

Having the Virgin card means I can get the money into my current account and then onto my loan. And it would also save me about £600 in interest on the loan!

Can I continue to use my Virgin CC once I get a new card...as an SBT for my second loan when the time comes to move it across?

IcklePickle_2

What's the APR on your abbey loan?

What APR will your virgin card go to when 0% ends?

nellis10

Not sure the APR for abbeyloan...all I know is tht the interest is top loaded.

The Virgin will be 1.024%/month. My intention is to keep moving onto new 0% cards until I clear all 3 debts... the question is...am I doing the right thing at this stage?

doodledo_2

Its a tough one to make the decision on. At the moment it would make sense to clear the loan. As long as no penalties which outweigh the interest saved.

Only issue I am thinking is come the end of the 0% period what if you don't get another 0% card. Are there many 0% deals about now in this current climate.

If you can't get another good deal you may find the APR on the loan is less than the APR on the card, which would be around 12%.

Tough call to make.

IcklePickle_2

nellis10 wrote: »

Not sure the APR for abbeyloan...all I know is tht the interest is top loaded.

The Virgin will be 1.024%/month. My intention is to keep moving onto new 0% cards until I clear all 3 debts... the question is...am I doing the right thing at this stage?

Trying to keep it at 0% is the right thing to do if you can be confident you'll continue to be accepted for new 0% cards, or be able to get 0% loyalty deals from existing cards. The problem is we can't predict the future market and what will happen with 0% deals. Already some cc companies are reducing credit limits, hiking aprs, not offering deals to existing customers.

It might be safer to get a low Life OfBalance deal, say around 5-7%, if you can't clear off the debt sooner.

I've got a 6.9% LOB with existing card for one of my balances because I know I can't clear it within next 12mths, and I had more trouble tarting this time than I ever had before.

I guess it depends on your overall picture - total amount owed related to salary / credit rating / amount available monthly for debt repayment.

IcklePickle_2

Also, May isn't very far away for a 0% deal. Do you think you'd get accepted for a longer 0% promo, say 12mths, on a new card application?

Mrs_Jones22

Maybe try applying for a 0% one now see what happens at least can tran's the loan over to it if you can then the other balance off the other card when that one runs out?

nellis10

If I can get a 12 month 0% now I'll get the loan onto it via the virgin card. i can't pay off the loan by any means other than the current account...so need to trasfar loan to Virgin, then virgin to new CC...a palaver I know...but if I save interest I'd be happy