What to do with credit card debt

magicgenie

Hi everyone
I owe £9000 on a 0% Virgin Credit card, I think the period ends in June/July. I've been paying £100 per month presently into it.

I've taken a job in the Middle East though, i leave in May... my question is what would you advise I do with the debt.

I've just remortgaged my flat and pulled 20k of equity from it, I'm hoping to invest this money in property in my new place of work instead of renting.

What would you advice to do with the debt?
All I've come up with so far is:
1. Pay it off with the equity (don't really want to)
2. Get a new credit card 0% (tart) (but what do I do when that period ends?)
3. Turn the debt into a loan.

I'd very much appreciate any positive feedback/advice
hope to hear from you, kind regards
Alex

jonesMUFCforever

What can you buy for £20k in Middle East?
If you pay it off you will not incur any interest.
If you get another card will you get a high enough limit to clear Virgin?Even if you get 0% you may have to pay a fee of minimum fee of 2% or so.
Is the £9k a debt or do you have the money saved somewhere?
How much could you afford to throw at this debt every month when you have relocated?
One last point where will your salary be paid? Into an account in this country or in Middle East? If the money is paid abroad then you will incur costs each and every time you want to send money home to your UK account to pay your bills.
Sorry one last last point what will you do with your flat? Are you going to rent it out?
Any surplus rent over mortgage payment to set off against credit card debt?

magicgenie

Hello
ejones999, thanks ever so much for your help.

<What can you buy for £20k in Middle East?>
20k should be fine as a deposit on a 2 bed apt costing around 170k

<If you pay it off you will not incur any interest.
If you get another card will you get a high enough limit to clear Virgin?Even if you get 0% you may have to pay a fee of minimum fee of 2% or so.>
Ah, ok, I'm a little bit out of touch with the market, are there really no free balance transfers going on now? To be truthful, I think if I'm going abroad, and my time there is indefinate, tarting is not the route really is it.

<Is the £9k a debt or do you have the money saved somewhere?>
I have savings to cover it. But this is all I have in the world 10k savings, to cover me if I lose my job, fall ill etc

<How much could you afford to throw at this debt every month when you have relocated?>
I'm thinking 100 for now.

<One last point where will your salary be paid? Into an account in this country or in Middle East? If the money is paid abroad then you will incur costs each and every time you want to send money home to your UK account to pay your bills.>
In the Middle East. Good point.

<Sorry one last last point what will you do with your flat? Are you going to rent it out?
Any surplus rent over mortgage payment to set off against credit card debt? > Yeh, hoping to rent it out for 550, with the 20k equity pull out, the mortgage payment will be 500.

I also, own another property, mortgage on this (B2L) is £400 amd the rent is £550.

I'm wondering, after chatting to yourself, and working it all through my head if turning it into a loan is the right thing to do, thanks ever so much for bearing with me, what do you think?

regards
Alex

jonesMUFCforever

I can only speak for myself but I would pay off the debt as much as possible BEFORE committing myself to another property purchase whether abroad or in UK. If say you pay off half now and either get a 0% or low rate Life of Balance card for rest, this gives you flexibility and lessens cost of early redemption fees if you take out the loan option.

magicgenie

Many thanks ejones999 for your advice. The 'Life of Balance' transfer card is the way I've chosen. I've just applied for the 'British Airways - American Express 4.9%' card, after clearing 2k off the 9k debt. This seems like the best, most flexible option.
regards
Alex