Things have started to go wrong

themongoose_2

I thought it was all going too smoothly.

My current situation: (the APR's and figures may not be exact, but are close)

I have the following credit cards:

EGG, 13.9%, £7k limit, currently £5000

MBNA, 1.9% until 12/04, 3k limit, balance £2000

LLOYDS TSB, 17.9%, £1K limit, balance £0

CAHOOTS, 13.8%, £1K limit, balance £0

BARCLAYCARD, 0% until 08/05, £1350 limit, balance £0

I Balance transfered (and got the fee waived) the £2000 from MBNA to pay off the TSB and CAHOOT cards because they were the highest APR's, and got a nice 1.9% for 4 months.

I think I will close the LLOYDS TSB card so I can reapply as a new customer for a create-a-card with a low life of balance APR (if its still available) in 6-12 months time.

I also think I will close the CAHOOT card just so it adds something more positive on my credit score.

I have just received the Barclaycard and the plan was for it to have a £5K limit so I could dump the egg card onto it and not worry about it for 12 months, but now I don't know what to do.

As the 0% phase has ran out on my egg card and the limit on the barclaycard is too low, I need some advice on what to do with the £5k balance I have on my egg card.

I am reluctant to apply for another card, unless that's the best advice, because I don't want the credit score hit. Is that even an issue?

There is no panic, I can handle the payments but would rather nip it in the bud before the slippery slope gets steeper.

Any info will be greatly appreciated.

CHEERS

bpyoung

If you haven't been refused for a card yet, I'd at least try applying for another one - your credit score can't be that bad. Halifax/Bank of Scotland might be an option for you - they seem quite generous with their limits and have a 9 month 0% offer on at the moment. Of course, if you start getting refused, then it may be time to try a different tack.

In the meantime, close down the two cards with no balance and high APRs - unless they offer you something better when you call to close them. And shuffle as much as you can from Egg on to the other cards. Maybe you could try getting MBNA to increase your credit limit?

johnllew

You're short on credit limits, it seems. I'd use all the BC limit on part of the Egg balance and see if MBNA will let you transfer £1000 from Egg @ 1.9% without a fee. If they'll increase your credit limit, even better - they may well do if you tell them you've got a large balance to transfer..

Lloyds TSB have recently been sending out cheques @ 5.9% for the life of the balance - it might be worth ringing them to see what they can do for you (and try to get your limit increased at the same time) and then cover more of the Egg balance.

I wouldn't cancel the Cahoot card, you can use them to make short-term interest-free BTs and they have regular BT promos as well. Try to get the limit increased to accommodate any Egg balance short-term.

What you really need to do though, is start working on reducing your debt so you don't have this problem in the future. It's all very well playing the 0% game but the aim should be to be able to pay it off when it all comes to an end.

bpyoung

It's all very well playing the 0% game but the aim should be to be able to pay it off when it all comes to an end.

Ahem, IF it comes to an end, shurely? I'm planning on being able to shuffle for at least a couple more years yet...

johnllew

Ahem, IF it comes to an end, shurely? I'm planning on being able to shuffle for at least a couple more years yet...

I've been doing this for over 10 years but I don't count on it going on forever. I always have the money ready to meet all my outstanding CC balances just in case. They may stop the offers, change the T&Cs (more handling fees etc) or you may not be able to get any more cards, particularly if your circumstances change.

Milarky

themongoose,

Also remember there's Egg card's 'anniversary' offer, which will be coming around in less than 7 months (and another a year after that). But to benefit you'll have to transfer the current balance to another card first (if only for the time it takes to move it 'on and off')

Your debt is £7000 - which in theory you could accommodate just on your Egg card for 5 out of 12 months

You only have 5 cards (including BC) so, again, getting further cards in the near future looks do-able.

And cahoot can be used for short-term iterest-free transfers but it is not so striaghtforward as making conventional balance transfers, and less practical.

ceebee_2

Hi !!!!

Try to find a Capitol 18 month 0% BT and then start a Direct Debit for the minimum payment each month. That should give you plenty of time to sort things out. As a general piece of advice, always start a DD. That way you can"t get lumbered with (exhorbitent) penalty charges.