Credit Card Juggle

CAM09

Hi all

Can anybody pls help me juggle my credit cards? Am a regular poster on other boards but if my family knew what debt I am in, they will kill me therefore, using a new name-hope this is ok?

OK we (OH and I) have a few cards and need to juggle them to get the best rates.

MBNA nothing on there at minute, 6.9% for life of BT. Currently £2500 limit, have asked to increase and should know by Monday.

Halifax, £1570 at mo, 18.95% (:eek:), £2750 limit, 6.9% BT offer lifetime

Natwest, £919 at mo, 13.9%, £3200 limit, current offer 0% for 9 months on BT (no fees)

RBS, £3370 at mo, 0% til October

RBS2, £2081 at mo, 13.1%, limit £3650, no current offers

Halifax2, £7000 at mo, 17.9% (:eek:), £10750 limit, current offer 6.9% lifetime for BT.

Is there a way to transfer all this about to end up with fewer cards, all at 6.9% for life? Assuming all have fees of approx 3% except Natwest. Hope to get it paid off in next 2.5 years. Can't transfer between Halifax and RBS (I think).

Anyone feeling clever and helpful? Would be much appreciated:beer:

TIA

YorkshireBoy

CAM09 wrote: »

Can't transfer between Halifax and RBS (I think).

Yes you can. Maybe you're confusing RBS with BoS, whom you can't transfer Halifax debt to/from?

Karl.H_2

I would apply for a new balance transfer card with 0% for 16 months (e.g. Vrigin) and transfer the highest debit vs. highest interest rate onto that card. Have you managed to read Martin's articles because there are some good ones on moving debt around.

EDIT: Here's the article.

CannyJock

Okay, here's what I reckon .....

Assuming 3% fees, and you can transfer up to 95% of your credit limit. Also assuming these offers aren't pulled part-way through. I'm also ignoring the pennies

Natwest and Halifax 1 offers have the catch of the current balances and the allocation of payment being a problem.

Step1 - BT £930 to MBNA from Natwest (extra is to cover residual interest to ensure nil balance), £28 fee, MBNA balance will be £958. This frees up the Natwest card for a 0% fee 9 month deal. Need a nil (or positive) balance statement from Natwest to confirm before step 3.

Step 2 - BT £1375 to MBNA from Halifax 2 (ask to BT maximum possible!), £42 fee, MBNA balance will be £2375.

Step 3 - BT £1594 to Natwest from Halifax 1 (extra is to cover residual interest to ensure nil balance), no fee, Natwest balance will be £1594. This frees up the Halifax 1 card for the LOB deal. Need a nil (or positive) balance statement from Halifax 1 to confirm before step 5.

Step 4 - BT £1446 to Natwest from Halifax 2 (ask to BT maximum possible!), no fee, Natwest balance will be £2612.

Step 5 - BT £2104 to Halifax 1 from RBS 2 (extra is to cover residual interest and clears highest APR non-HBOS debt), £64 fee, Halifax 1 balance will be £2168. Close RBS 2 card and ask them to transfer the credit limit to your Natwest card - it can be done but their CS people might say otherwise - be prepared to speak to an underwriter and explain that as RBS underwrite both cards they've not increasing their exposure in any way.

Step 6 - BT £431 to Halifax 1 from RBS 1 (ask to BT maximum possible!, there's only 2 months left on the current 0% BT, you can delay this for a couple of months if you want), £13 fee, Halifax 1 balance will be £2612.

Optional - If RBS 2 credit limit is moved across to Natwest card, BT to Natwest the maximum possible from your Halifax 2 card - that's the one you need to work on clearing. Make the minimum repayments on all other cards until this one is cleared. Double check with the Natwest CS people they will allow another 0% BT - fair chance they won't, but worth trying.

Personally, I'd be phoning to reduce the credit limit on the Halifax 2 card to hopefully free up available credit for another card to move the Halifax 2 balance on.

I reckon you'll end up with:
MBNA - £2375 @ 6.9% LOB
Halifax 1 - £2612 @ 6.9% LOB
Natwest - £3040 @ 0% for 9 months
RBS 1 - £2939 @ 0% for 2 months, then 13.1%
RBS 2 - closed
Halifax 2 - £4179 @ 17.9% <=== need more cards to clear

With any luck, the credit limit move will deal with the biggest part of the Halifax 2 problem.

Check that the BT offers will stay available long enough for this to be viable.

You'll have added £134 of fees to your overall card balances but it'll be on a healthier basis and you should save that in interest fairly quickly.

CAM09

Just lost my post :eek:

Thanks all, Cannyjock, I'm thinking along the same lines. Would this work (been thinking all afternoon)?

Step 1 - Halifax (£1550) and Natwest (£800) to MBNA (£70 charges). Pay off £20 and £120 left on Halifax and Natwest. MBNA £2420

Step 2 - £3000 from Halifax2 to Natwest. No fees. NATWEST £3000

Step 3 - £2080 from RBS2 to Halifax (£62 charges). HALIFAX £2142

Step 4 - £3500 from Halifax2 to RBS2 (£105 charges)

Step 5 - £500 from Halifax2 to MBNA (if they increase my limit by £500+). (£15 charges) MBNA £2935

Step 6 - £3370 from RBS and £3605 from RBS2 to Halifax2 (£206 charges) HALIFAX2 £7076

Close both RBS.

Leaving:

MBNA £2935 LOB 6.9%
Halifax £2142 LOB 6.9%
Halifax2 £7076 LOB 6.9%
Natwest £3000 0% 9 months.

Would this work? Assuming all offers stay open and MBNA increase limit by £500+? Have paid bout £450 in fees but that is only 4 months current interest on Halifax2 so got to be better in the long run.

Any comments?

Karl.H_2

Double-check the charges of BT out of the initial 90 days (or whatever) of opening the BT card.
Also, I would go through to apply for a new BT card with a long 0% BT to BT your Halifax2 debt, providing you can get a new card with a higher limit. Then, in a few months time apply for another BT card and clear MBNA. However, 6.9% LOB deal is fantastic, but 0% for x months is better.
Wish you well.

CAM09

Thanks Karl. What sort of limit do Virgin tend to give on new cards? All the ones I have I've had for months/years and they all told me the offers this morning. My worry is applying for a Virgin and only getting a low limit - would it be worth it? Suppose if it is only £2-3000 its better at 0% for 16 months than 6.9% for LOB.

Or might Virgin only offer me say £500? Anyone any ideas?

Thanks

Karl.H_2

I am not sure what Virgin tends to offer, but perhaps not much with such a long BT deal. Once you have chosen an option, from above, to move your debt around attempt it. Like most credit card companies, they state 'if you’ve got a high salary and low debts, you’re more likely to get a higher credit limit.' So, if your salary is higher than your debts go for it.

Their BT fee stands at: 2.98%.

One more thing, you may find this interesting: 'Also, as the Virgin Credit Card is issued by MBNA, remember you can't transfer a balance from another credit card issued by them.' (from Virgin's Q&A section of the card).

Karl.H_2

I have been reading around this forum and it seems may people have problems with Virgin. I thought this deal was too good to be true. Read this.

CAM09

Thanks Karl. Will try and do the above and see if I can get it to work timewise before I look at Virgin then. Will start on Monday when I find out if my MBNA limit has been increased. The 6.9% offer is on til October on this one so its a start.

Thanks again :beer:

jonesMUFCforever

Its all very well transferring from card A to B and on to C etc but do you actually have a plan to repay this debt and not incur any more?