Re: Credit Card Debt / Balance Transfers

kevinabland

Newbie here...

I have a minor debt problem. I have two personal loans totalling £9k and a credit card with £6k on it. I would like to clear the CC as soon as possible (who wouldn’t!).

My current monthly repayments on my CC are approx £70. If I transfer my balance to a new card will my repayments decrease? Sorry if this question appears naive. I am considering ‘card tarting’ to get myself out of this hole.

Thanks in advance for any advice.

Bokken_2

If you Balance Transfered to another card(that gave you the same limit,this may not be the case)like the MNBA/Vigin/A&L they only require you the pay approximately £5.
The problem with this is the debt is still there and not decreasing so at then end of any 0% offers the outstanding amount has only decreased by say 9mths x £5 = £45.
You still have to pay the debt or move it to another card.
I would suggest you look at Martins articles on Life Of Balance cards if you need more financial room to move.
IF Finance and American Express both have cards that are LOB.

kevinabland

Thanks for the reply Bokken.

I was under the impression that the minimum monthly repayments are generally around 2%. So if I transferred my £6k to another card, I would have to repay at least £120 per month. Am I missing something here?

I have done some sums and I reckon I could afford to repay around £100 per month.

sicker

You are quiet correct kevinabland, most card require a repayment of 2%, some 3%, but mbna cards only require £5 each statement. Grand if you have the willpower to put the remainder of your available £120 into a high interest account ready for the huge repayment still due at the end of your 0% offer,

Best of luck,

John

grumbler

kevinabland wrote:

...a credit card with £6k on it. ...My current monthly repayments on my CC are approx £70.

What card is it with just about 1% minimum payment? If it is some of MBNA cards with £5 minimum payment (and you are paying some extra), then you cannot transfer this balance to another MBNA card. See http://www.stoozing.com/cards.htm

See also: http://www.stoozing.com/0fees.htm

kevinabland

My card is a Virgin Mastercard. I guess that throws the MBNA option out of the window!

Any suggestions?

grumbler

With all other cards you will pay at least 2% every month. And I think this is good for you: Danger! Avoid Minimum Repayments.

kevinabland

I am thinking that the best form of attack is this:

1) Transfer my balance to a 0% for 6mths card (will do some homework on this)
2) Pay off £1000 of the credit card using my savings (i.e. new balance = £5k)
3) Pay off as much as I can afford per month (£120)
4) Before the 6mths runs out, transfer to another 0% card
5) Repeat steps 3) and 4) until CC = £0!

In other words - get tarting!!