Credit Card Juggle

CAM09

Yup. I was waiting for this one having read other threads on this board.

As in my first post -2.5 years. Paying off at least £500 (£670 a month would see it gone in 2 years so aiming for a few lump sums - thats why I don't want a loan) a month but now (when rearranged) paying off (mainly) debt and not interest.

Thanks :beer:

CannyJock

CAM09 wrote: »

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?

No reason why not. Main things to remember are:

• BT enough to cover residual interest to clear a card
• Get a nil or positive balance statement before taking up an offer to avoid the allocation of payment trap

On the other replies mentioning Virgin - they're backed by MBNA and you've already got an MBNA card. Asking for a credit limit increase might be a better idea than a new application. As to whether they're good or bad to deal with - they're no worse than any other card provider, you're taking the right approach seeing how to take advantage of them

CannyJock

jonesMUFCforever wrote: »

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?

Hear what you're saying, but I'd applaud the OP for making the smart move to do the juggling to minimise interest while clearing their debts.

They could have just posted and asked if it's true that if their credit card agreement was pre-2007 that they could just walk away from their responsibilities.

neas

I just thought id say congratulations and well done for starting the 'light bulb' moment as some call it

If paying off 500 quid amonth is reasonable then paying back 13k (plus a about 2k say interest) would take as you say 2.5 years... stick to the plan adn youll get there in no time :)_

CAM09

[QUOTE=CannyJock;23453009
They could have just posted and asked if it's true that if their credit card agreement was pre-2007 that they could just walk away from their responsibilities. [/QUOTE]

Ooh - that would be nice but I couldn't live with myself.

Thanks for the support guys - I actually thought the Halifax2 was on approx 10% and just never got chance to check properly. Didn't realise two of them were so high! Time to get serious :T and debt free.

If my plan doesn't work, I may be back for a new one

Here to 2011 when its all gone (if not sooner).

Thank you :beer:

jonesMUFCforever

CannyJock wrote: »

Hear what you're saying, but I'd applaud the OP for making the smart move to do the juggling to minimise interest while clearing their debts.

They could have just posted and asked if it's true that if their credit card agreement was pre-2007 that they could just walk away from their responsibilities.

I would say that by paying all those balance transfer fees would make a loan (one whereby they allow you to overpay) an alternative worth looking into.
If OP's credit files are ok then he might get a single digit interest rate loan.
Obviously if he is offered anything above 14% then this idea is a no no.

CAM09

I don't think I'd get a loan for that much along with my mortgage. Tried this and/or increasing my mortgage bout 6 months ago (bad timing I know) and it just didn't work. That would just go off my income as OH has poor credit (long irrelevant story) whereas if I can utilise what I have, I don't have to worry about who to apply to etc and have loads of searches done.

Just want it secured on a low ish rate so I can get on and pay it off.

Thanks for the thought though - I'm open to any new ideas......

CannyJock

Problem is applying for a loan with £ 15k on credit cards. One loan source that does allow penalty-free over-payments and early redemption is Zopa , there's a £118.50 arrangement fee.

CannyJock

Not wanting to confuse things with more options, but there's another trick to consider with MBNA backed cards. If you did successfully apply for a Virgin Money card 0% for 16 months, even if they only gave you £ 500 credit limit, you can move the £ 2,500 credit limit from your existing MBNA card across to give you £ 2,935 at 0% for 16 months instead of at 6.9% LOB. You'd save approx £ 250 in interest but would leave you with the problem of what to do at the end of the 16 months.

Karl.H_2

CannyJock wrote: »

No reason why not. Main things to remember are:

• BT enough to cover residual interest to clear a card

Just out of interest. If you pay extra during a BT will your card go into a positive balance and stay there? Also, when you close the account I am assuming the postive value will be returned to the customer as a cheque, for example. Thanks for clearing that up.