Best way to deal with this ..please?

cavework

OH has £15000 of credit card debts over 2 cards.
One is £13,350 with Barclaycard now at 14.9% after discussion and cancelled PPI
other is Capital one £2,150 at purchases 11.9% and cash at 19.8%, I think most is cash withdrawl interest rated on the capital one card.
I have been looking at options to reduce the interest.
He contacted capital One to cancel his PPI (done) and they have offered a balance transfer of 3.8% for the life of the balance transfer,obviously with a 2.5% transfer fee. His CC limit with them is £8000 .
I also have access to transfering £9000 worth of the debt to a loan at 11.25% fixed for ten years with no penalty for early settlement.
We have been scratching our heads as to the best way to deal with this. it is the last stage of getting our finances under control and we really do want to make the right decision.
We have come up with this option..
total owed £15,500
clear £2,500 0ff capital One CC to loan , then when balance is zero transfer £8,000 from Barcalycard to capital One at 3.8% (it is a higher minimum repayment than barclaycard but much lower interest rate)
.Barclaycard balance remaining is then £5,500 and loan is standing at £2,500, .
then transfer the £5,500 remaining balance on the Barclaycard onto the loan once capital One is set up
We then have the option of seeing if we can get the 6.5% offer shown on this site for life of balance transfer back onto the Barclaycard, for the £5,500 now in the loan
Result is
Capital one £8000 @ 3.8% for the life of balance transfer
Barclaycard £5,500 @ 6.5% for the life of the balance transfer and
loan £2,500 @ 11.9% fixed, period to be agreed
One problem is , can I transfer a loan back onto a credit card, would they accept this?
My OH thinks they won,t agree.
PS we cannot change cards or get a 0% deal on CC.
I just want to throw every spare bit of cash we have at the highest interest rate and pay it off, then work my way down..
This site has helped me an awful lot about managing my money .. we are in debt but thanks to the advice I have been given over the last 2 years I am slowly starting to win the battle.
Thanks in advance for any advice or other solutions

CannyJock

cavework wrote: »

£13,350 with Barclaycard now at 14.9%
Capital one £2,150 at 19.8%

Capital One ... have offered a balance transfer of 3.8% for the life of the balance transfer,obviously with a 2.5% transfer fee. His CC limit with them is £8000 .

I also have access to transfering £9000 worth of the debt to a loan at 11.25% fixed for ten years with no penalty for early settlement.

Unlikely the loan can be part-settled as you describe, and you can't pay a loan directly from a Barclaycard. Worth checking with the loan company about part payment. Will assume not an option to part-pay it.

Barclaycard standard LOB offer to existing customers is 6.9% for maximum of 5K for the 2.5% fee. See http://www.barclaycard.co.uk/personal-home/cards/balance-transfer/index.html

Definitely a case of clearing the Cap One card before taking up the offer. Will assume it's all at the higher cash rate. Will assume they'll let you transfer 95% of credit limit.

No room on the Barclaycard to transfer the Cap one balance? Will assume not for now

I would do it as follows:
1. Cap One -> Loan £2,183 (£2,150 + 1.5168% interest). Barclaycard = £13,350. Cap One = 0. Loan = £2,183.
2. Barclaycard -> Loan £5,906 (£5,750 + 1.1642% interest on £13,350). Barclaycard = £7,600. Cap One = £0. Loan = £8,089.

Get nil balance statement on Cap One before transferring funds.

3. Barclaycard -> Cap One £7,600 (£8,000 x 95%). Barclaycard = £0. Cap One = £7,828. Loan = £8,089.

That's the best you'll be able to do unless you can find someone with a SBT card and an extra £3,089 in funds to clear the loan in full.