credit card confusion!!!

cy1

Hi,

I am really struggling i need some advice and I dont know where to turn to.....

I have a total of £5000 on three credit cards and currently pay approximately £60/month in charges.

Is it worth transfering onto a 0% credit card every year then incurring transfer fees? OR
leaving it where it is? OR
a loan? OR
anything else you suggest.

Thank you very much

PNPSUKNET

Are you finding it hard to make payments?

td_007

If you can transfer to 0% rates, then that is the best option even after paying the transfer fees as it will be approx 1.9-4% whereas the interest you are paying now will most probably be more than that.

What are the rates at present? That will determine how better/worse off you will be if you consolidate it against a loan?

Ritchie74

Assuming you have managed your debt well (i.e. not missed payments) and look like a low risk customer I would say BT your debt onto a 0% CC (Virgin are current offering 14 months at 0% I beleive). I say this as 0% deals are normally reserved for the low risk.

Transfer what you can onto this 0% card (leaving enough of your limit spare for the fee). If you don't get the £5k required, pay minimum payment off the 0% and as much as you can off the interest bearing account. Then continue to pay minimum off the 0%, save what you can each month and pay this off at the end of the 14 month interest free period. Then BT any remainder onto a new 0% card.

Depending on how much think you can clear after the 14 months, it may be better to take out a life of balance card.

Bank Loan rates are not very good at the moment at c.8%

Worst option is to leave it as you could be clearing that £60/m off your balance

YorkshireBoy

cy1 wrote: »

I am really struggling i need some advice and I dont know where to turn to.....

The debt-free wannabe board would be a good place to start.

I have a total of £5000 on three credit cards and currently pay approximately £60/month in charges.

So that's just a bit less than £720 per year...assuming you've stopped spending on the cards?

Is it worth transfering onto a 0% credit card every year then incurring transfer fees? OR leaving it where it is

Basic maths lesson coming...

You're currently paying approx. (£720 / £5000 x 100 = ) 14.4% interest per year.

Paying a 3% balance transfer fee each year will cost you (unsurprisingly) 3% per year...meaning your debt will be reduced quicker.

OR a loan?

Could be better if a) you want some peace of mind and b) you're not going to rack up any more debt after consolidating it all on to the loan.

anything else you suggest.

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