Creditcard Shuffle Inc. Overdrafts

geespeace

Hi all,

Looking for best advice consolidating the following:

1)Barclaycard - £3110 @ 6.9% for life (however, there is £300 cash advance at the start of this debt at a much higher rate so it needs shifting somewhere, then back again...)

2)BoS Overdraft - £1250 @ £30 per month (it's a fee rather than interest)

3)RBS Overdraft - £650 @ 18%

I have a Virgin card offering 4.9 until Oct 2011 with a limit of £5000 and it's empty. The standard rate is a crazy 30%.

The problem is that on their website, Virgin seem to only offer this rate on transfering creditcards and not overdrafts. The standard rate is still used for these.

What advice would you give me here if I want to fix that £300 at the start of the barclaycard and swallow up the expensive overdrafts in some way. I don't think that barclaycard will allow me to transfer overdrafts at all.

Ideally I only want 1 bill to pay, all the debt in one place.

Thanks!

YorkshireBoy

The Barclaycard cash balance won't be so much of a problem come 1st Jan 2011 when the new rules re allocation of payments come into force.

It's likely that such a small cash balance (and such a large existing balance) wouldn't lend itself to paying BT fees to shuffle it. It's also very likely that you wouldn't get the BT back at the same LOB rate.

Re Virgin, I'd call customer retention on 0800 783 1116 and have a discussion about your current rate. Say you'd use the card more if they lowered the rate (ideally to their typical rate for new customers). Once this has been secured, or maybe even if it hasn't, I'd negotiate a money transfer with them on the same terms as the BT offer (it can be done...I've just done it!). Then shift the overdraft debt to Virgin.

Following that, spend the next 9-10 months making sure your credit file is in tip top shape ready for BTing the Virgin debt on before the deal ends.

That's the best I can suggest without knowing anything else about your circumstances. I assume you know why the overdrafts exist? And also that you're doing something about them, ie trying to earn more/spend less?

geespeace

Thats great advice and it makes sense. I'll give virgin a call tomorrow and see what they can provide.

Regarding the overdrafts, well they are not for any one item or items. They are purely overspending which has grown over the past 8 years. I'm taking steps to spend less but more importantly I should be getting some lump sums from my work shortly which can pay off a sizeable chunk.

I've checked my credit report and it appears very good to me. I have a well maintained mortgage however I do have 2 late payments to barclaycard in 2008 and another in the same year to a mobile phone company. I hope these do not cause too much trouble.

Thanks for the advice!

geespeace

Took me a few days longer to do than planned but i'm just off the phone with Virgin. They did reduce my standard rates but only by a few percent.

They have paid the full balances of my overdrafts however and gave me a rate BELOW the promotional rate!!! They have given me 3.9% on both transfers until the end of October next year.

GREAT NEWS!!!

Now I can start getting rid of them haha!!!

Thanks again for the advice!