Can someone work this out for me please....?

makershaker

Hi, just wondering if someone could work this out for me....

Currently looking to transfer a debt of £4322 onto Halifax One card after recieving lifetime of balance 6.9% offer, adding 3% fee that should work out £4451.

So....., i think the minimum monthly payment is 1% of the balance and i was wondering if i set up a direct debit of £60 per month then how long will this take to clear off?

I tried the calculators but they only seem to ask me how much i want to pay on top of the minimum payment each month, so cant work it out if im paying a constant £60.

So thats £4451 @ 6.9% lifetime of the balance paying £60 per month = ???

Also, i currently have a balance on the card i want to transfer to of £193. Would i be better off shifting that to another card before i before i transfer the big amount to it i.e so the card is clear when i transfer?

Whats the best thing to do?

rushal

Hi,

Don't quote me on this, but according to the snowball calculator on 'whatsthecost' paying a fixed sum of £60 per month will mean you will have paid this credit card off by around April 2018. The interest you would have paid is £1,326.

If you wanna see how this works, get yourself to 'whatsthecost.co.uk' click on snowball on the left hand side. Enter £60 as the amount you want to pay each month, give it a description, enter the amount you owe, enter the apr, then in the fixed payment box enter £60. Click on calculate and hey presto theres your answer. Change the amount you want to pay each month along with the fixed payment to see what paying an extra £5 a month does (try it with various extra payments).

I could be wrong, but are you sure its only 1% of the balance per month you need to pay as the minimum?

As i have said, im sure someone will elaborate more on this, but at least this gives you a start.

stephane_2

makershaker wrote: »

Hi, just wondering if someone could work this out for me....

Currently looking to transfer a debt of £4322 onto Halifax One card after recieving lifetime of balance 6.9% offer, adding 3% fee that should work out £4451.

So....., i think the minimum monthly payment is 1% of the balance and i was wondering if i set up a direct debit of £60 per month then how long will this take to clear off?

I tried the calculators but they only seem to ask me how much i want to pay on top of the minimum payment each month, so cant work it out if im paying a constant £60.

So thats £4451 @ 6.9% lifetime of the balance paying £60 per month = ???

Also, i currently have a balance on the card i want to transfer to of £193. Would i be better off shifting that to another card before i before i transfer the big amount to it i.e so the card is clear when i transfer?

Whats the best thing to do?

It will take you 8 years + 1 month to pay that debt

Fruit_and_Nut_Case

rushal wrote: »

you will have paid this credit card off by around April 2018.

stephane wrote: »

It will take you 8 years + 1 month to pay that debt

Agreement!

makershaker

So, is it better if i get the £200 debt already on that card onto another card before i transfer the debt onto it?

CannyJock

makershaker wrote: »

I tried the calculators but they only seem to ask me how much i want to pay on top of the minimum payment each month, so cant work it out if im paying a constant £60.

So thats £4451 @ 6.9% lifetime of the balance paying £60 per month = ???

Try the minimum repayment calculator - http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

Put in the numbers but set the min % to 1 and the min £ to 60. Play around with the min £ amount to see the effect of increasing the amount you pay

makershaker

Okay, so its roughly gonna be 8 years but hopefully as the years go by i'll be able to increase that

So now, is it better if i get the £200 debt already on that card onto another card before i transfer the £4551 debt onto it?

CannyJock

makershaker wrote: »

Okay, so its roughly gonna be 8 years but hopefully as the years go by i'll be able to increase that

So now, is it better if i get the £200 debt already on that card onto another card before i transfer the £4551 debt onto it?

Ideally, yes. The APR on the existing balance will be higher than 6.9% and the allocation of payments means that your payments will be settled against the 6.9% amount while the £193 grows at whatever APR it's on now. No way to just pay the £193 balance rather than mess about with new applications?

If it's a Barclaycard, you can always just ask them to move the £193 onto a 6.9% rate. There's a recent post where someone has had their balance moved onto a 6.9% rate.

And you do know that once you've got the balance at 6.9% you can't use it for spending?

makershaker

yes, i just want to start clearing the debt off, im fed up switching cards year to year and getting nowhere, thats why i'm going for lifetime balance.

And no, its a Halifax card which i have the offer on.

Although i do have a barclaycard platinum with £0 on the account just now.

CannyJock

makershaker wrote: »

Although i do have a barclaycard platinum with £0 on the account just now.

Worth phoning them to see if they can match the Halifax offer of 6.9% but waive the fee and you can then move the Halifax balance and the other debt onto one card if your limit allows? The other £4322 is on a third credit card then?

EDIT: Just a note that Barclaycard min repayment is 2.5%

makershaker

CannyJock wrote: »

Worth phoning them to see if they can match the Halifax offer of 6.9% but waive the fee and you can then move the Halifax balance and the other debt onto one card if your limit allows? The other £4322 is on a third credit card then?

EDIT: Just a note that Barclaycard min repayment is 2.5%

I have

£4753 on Virgin

£193 on Halifax

Halifax limit is £4550 and can only transfer £95% of my balance so what should i do?!!


Was gonna apply for another card with an interest free period to transfer the rest onto when i max out the Halifax card?

Any advice would be greatful on what to do as i'm a bit stressed out by this, money is very tight at the moment!