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Can I transfer my balance??

Hi, this is my first ever post ... I'm just setting out on my quest for a debt free life and am having to face a few nightmares at the moment as I have been burying my head in the sand for far too long. My sister in law gave me the Money Diet book and reality hit home! I have been totally inspired by the book and this site and hope that I can make a difference to my finances. One (of many) of my questions is as follows:

I have a £2,500 debt on my Natwest Visa, which, along with a couple of other cards I would like to transfer to a 0% interest deal.

However, I bought a Tiny TV using the Natwest card which I had to send back as it was faulty. Unfortunately before I received a replacement telly - they went bust! I have only just got round to sending the letter off to Natwest asking them to investigate and to try and get my money back.

Do I have to wait until I get the refund before I balance transfer??

Emmy

Comments

  • Well you could do one of two things:

    1. Transfer the whole balance away from natwest, wait for the refund to go through and when it does - so it will effectively be a credit on your account - close the account and ask them to send you a cheque for the credit balance (may take a while though for them to get around to doing

    or

    2. Transfer the balance minus the amount of the refund and when it comes through this will offset the balance left. CLose the account and get them to send you a cheque for the cedit balance.


    Obviosuly with (2) you may have to wait for the refund to be processed and thus will incur interest whilst waiting.

    hth
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
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  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    Welcome emmy,

    No you don't have to wait until Natwest decides whether to reimburse you for this item (it has to be for more than £100 btw unless there are additional guarantees that come with the Natwest card you hold.)

    Now as regards your balance transfer - this is not a payment from Natwest but a payment from someone else to Natwest - which transfers the debt only to a different credit card. This card you will have to select, apply for and be accepted - and the likelihood of success in this regard depends on factors like how up to date you have been with payments to Natwest.

    There are basically two kinds of balance transfer deals to look for - short term (eg upto 12 months) interest-free cards OR long term or 'life of balance' type cards with rates of interest approximately a third of what you pay now. The latter may be more appropriate for you as you are seeking to pay down a debt. If you need to apply for new cards at least every 12 months you risk rejection and rates going up to high level again.

    However whatever route you take you must understand that cards all have different features and they carry pitfalls. Don't be tempted to spend on a new card just because it offers a low rate on purchases too - as you are not then reducing your debts. I suspect once you have moved you debt away from Natwest you should stick the card in a draw and not use it again. Use you bank account to budget purchases (etc) but try to avoid going overdrawn. Some people favour debit cards because each time they use them they feel they have 'paid' for the items - because the money is taken straight from their bank account - whereas if using a credit card they just run up a bill.

    Have you asked Natwest to reduce your rate with them? They might consider this - particulary if they assess you as likely to be able to get another card, There is no harm in asking them.

    Good luck
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  • Thank you for your advice. I have decided to transfer the entire balance to another card ... probably the Post Office? I need to get this sorted out because at the moment I am paying £58 per month - £48.79 of which is interest and fees (I have gone over my limit!) I can't beleive that I have been letting this go on for so long without even realising how little was actually being paid from the balance.

    My other debts are as follows:

    Virgin Credit Card £929.71 - currently paying £50.00 per month - don't know APR

    Next Directory £211.67 - currently paying about £34.00 - APR 26.49%

    The overdrafts with Natwest, currently totally approx £6,500.

    My problems are compounded by the fact that my husband and I started our own business three years ago and in the beginning paid ourselves only £450 per month gross. We have been expanding the business and this year haven't paid ourselves anything and have been living off Tax Credits (£826 per month) and overdrafts! We have got to the point where we obviously have to start paying ourselves again but we need to decide how much and am very worried about jeopardising our Tax Credits.

    The Tax Credit will be reduced this year as my daughter has started school and we are no longer claiming for child care. I don't know how much we will be receiving yet - I phoned but they haven't processed my renewal yet.

    I do feel that I don't know where to start - should I speak to a financial adviser or something?

    Emmy
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