Credit card interest reduction

markoptions

I have a Natwest Gold Access with a balance to pay of 3.1k approx, 10k limit . Interest is 20.9% annum. (Yes i know very high)

I have a EggCard with a balance to pay of 3.7.1k approx, 5k limit, (Recently increased). The Interest is 15.9% annum. (Yes, still high)

Recently starting a business , I cannot get a loan to consolidate these debts, so in order to now reduce interest payments I intend to do the following in september

1 Pay £1000.00 off egg card (maximum I can afford at present)
2 Transfer 2.2k access to egg. I have to pay a 2.5% surcharge on balance transfers (£55.00)
but in september get 5 months interest free credit on the 2.2k
3 Thereafter pay £100.00 per month on the egg card as I have been doing
4 Pay £300.00 per month ( for 3 months i can do this only) off access remaining balance to clear debt altogether
5 Transfer my egg balance when access card balance has been cleared completely over.

I understand for existing customers I would get an interest rate of 6.9% for life on balance transfers with access, which is better than the 15.9% egg interest. I don't know if I should wait the 5 months or not or if egg would otherwise transfer the higher interest debt on the card already (3.7k)

I cannot see a better solution and grateful for some feed back

YorkshireBoy

markoptions wrote:

I cannot see a better solution and grateful for some feed back

How about?...

• Pay the £1,000 off NatWest now. (Egg = £3,700 @ 15.9%, NatWest = £2,100 @ 20.9%)
  
• Towards the end of this month, BT the Egg balance to NatWest. (Egg = £0, NatWest = £5.8K @ 20.9%)
  
• On 1st September, BT 95% of your Egg credit limit back from NatWest to Egg and get the whole of your Egg balance on 0%. (Egg = £4,868.75 [£4,750 + £118.75 BT fee] @ 0%, NatWest = £1,050 @ 20.9%)
  
• Pay the minimum 2% payments to Egg (starting at around £100)
  
• Throw every penny you have at the NatWest debt for the duration of the Egg anniversary period, aiming for a zero balance.

Then, at the end of the Egg anniversary period, either...

• Move the Egg balance (approx £4,400) back to NatWest for a (LOB?) deal if you can get one, or
  
• Your situation may have improved and you could apply for a 0% BT card with another provider. You might want to consider closing the NatWest card, or at least lowering the credit limit, before applying elsewhere.

Disclaimer(s):

• It's late!
• Check, and factor in, any NatWest BT fee (for the initial £3,700 transfer).
• Check my logic.
• Check my numbers.
• Wait for others to comment before acting.

Good luck.