I have no idea what is best keep to visa or swap to loan?!

linda0001

Trying to help my mum - I have no idea myself
Yorkshire Bank Visa

Current balance £1,695.06

Each month she pays £70

but around £35 of that goes on Interest - does this seem about right for that amount of money?

All i can find out is that : Interest on (cash) per month = 2.075%
on (purchases) = 1.667%

To me, I think it's prob about right as it is - but recommend her changing it for a loan get the payments down quicker- but she states if she has a loan would prob still be paying around £70 a month for around 5 years however when the visa comes down eventually the repayments are cheaper for her -

The visa just doesn't seem to be coming down fast enough - half of the £70 monthly repayment goes on interest!

ANY IDEAS ON WHAT IF ANYTHING WE CAN DO?

CLAPTON

35 in interest on 1695 is 35/1695 x 100 = 2.06% per month which looks as if your mother has used her card to withdraw cash (very unwise)
this is equivalent to about 26% APR

if she continues to pay about 70 and doesn't use the card anymore then it will be cleared in about 33 months ; however if she pays the minimum then as the minimum decreases it will take longer and longer to repay.

if however she can pay a little more say 100 per month by making an extra payment then she can clear it in about 21 months .. again assuming she has stopped using the card

getting a loan may be a good idea but that depends upon her credit rating and income but it may be difficult to get a loan at a good rate for a relatively low amount.

can she get a 0% BT credit card ? then all her money goes to clear the debt but she nees to check what APR she will be paying once the 0% promotion has expired.

linda0001

BT after 13months goes to 16.9% APR Typical (variable)

Barclaycard Platinum Simplicity Credit Card
I found
A low rate on all your purchases
6.8% interest on all balance transfers until paid in full (no handling fee applies)
With contactless payment technology, a new quick and easy way to pay for purchases of £10 or under
6.8% APR typical (variable)


Does this seem a good idea to transfer to them maybe?

TrickyDicky

BTs are are great way of reducing your payments if you can get a good deal. But you have to be disciplined and remember that a BT is fine, but if you still have the old card available, they may be tempted to use that balance again, just putting themselves in a worse position.