To transfer or not?

Smoggie69

Following our wedding & honeymoon last year we now have the following CC situation.

Virgin limit 10000 / balance 8900 (3785 @ 0% until March 2010 then 18.9%, rest @ 0% until June 2010 then 18.9%)
Halifax limit 11000 / balance 2475 (2000 @ 0% until June 2010, rest @ 14.9%)
Barclaycard Simplicity limit 3980 / balance of 805 - 7.8%

I currently have a balance transfer offer from Halifax for either 0% for 6 months or 6.95% for the life of the balance (3% BT fee)

I am thinking of transferring the £2475 from my Halifax card to my Barclaycard (with no BT fee), then transferring the £8900 from my Virgin card to my Halifax card - using one of the offers above.

Does this sound like the best plan? Or does anyone think that Virgin would give me a better offer if I called them?

Tixy

Rather than transfer all £8900 on to the halifax card, why not work out how much you can afford to pay off before the virgin card 0% runs out and leave that on the virgin card. You will then pay no interest on that amount and save yourself the 3% fee on that amount.

CannyJock

Smoggie69 wrote: »

Virgin 3785 @ 0% until March 2010
Virgin 5115 @ 0% until June 2010
Halifax 2000 @ 0% until June 2010
Halifax 475 @ 14.9%
Barclaycard 805 @ 7.8%

Virgin allocation of payments means any payments/transfers will go against the £3785 where the 0% is about to run out (only while they're both at 0%), so you could transfer that amount and leave the £5115 at 0% till June.

With Halifax, the £475 @ 14.9% will cost you £71 per year, same as a 3% fee on £2367, not the end of the world.

Barclaycard 7.8% LOB is 90% of limit if done within first 60 days - you still within 60 days?

You don't mention how much you'll be able to pay towards the cards each month?

Smoggie69

The only problem is I think I would have to wait for my next Halifax statement before I can use the BT cheques. I assume Virgin would only clear the 3785 before my March statement, after which I would be paying off the remainder that's 0% until June first.

Basically whatever is left the day before each payday will be going towards it, on top of the direct debits. This will vary from month to month, but I would like to think this will be at least £150 per month.

I have only just opened the Barclaycard in January.

CannyJock

Smoggie69 wrote: »

Virgin 3785 @ 0% until March 2010
Virgin 5115 @ 0% until June 2010
Halifax 2000 @ 0% until June 2010
Halifax 475 @ 14.9%
Barclaycard 805 @ 7.8%

The only problem is I think I would have to wait for my next Halifax statement before I can use the BT cheques. I assume Virgin would only clear the 3785 before my March statement, after which I would be paying off the remainder that's 0% until June first.

I would like to think this will be at least £150 per month.

I have only just opened the Barclaycard in January.

I'd transfer £2555 from Halifax to Barclaycard to cover interest and create a small credit balance.

If that allows you to get your Halifax statement in before the MBNA statement, then you'd be able to do the BT of £8900 to Halifax assuming the offer is still there.

I'd transfer the whole balance to Halifax and see if a nil balance on the Virgin card gets you an offer after June. Wouldn't mess about leaving part of the balance at 0% with only 3 months left and £150 per month repayment (would only save you maximum of £2.37 in interest).

EDIT: The Virgin and Halifax cards are both pretty good limits - have you considered a new card and tarting rather than going down the LOB route?

Smoggie69

Thanks for that. I've had a look around, but having just got the Barclaycard last month, I wouldn't expect to get much more from another card co. The only option really is an Egg card, as I don't have current accounts with Natwest or RBS for their longer term 0% offers.

The Halifax offer is until the end of March, but I'm not sure if it will work if it transferred off Halifax early-march, then transferred from Virgin mid-late March.

CannyJock

Smoggie69 wrote: »

The Halifax offer is until the end of March, but I'm not sure if it will work if it transferred off Halifax early-march, then transferred from Virgin mid-late March.

What are your statement dates on Halifax and Virgin? Halifax offer open till 31st March? When is your 60 days up with Barclaycard?

Smoggie69

I opened it around the 26th January. I think I will transfer the 2555 tomorrow, then wait til my March Virgin statement is due to transfer the 8900 to Halifax. Then I will have approx:

£3280 on Barclaycard @ 7.8%
£8900 on Halifax @ 6.95%

Start to pay off Barclaycard 1st as it's higher. Both will be LOB rates.