need money for urgent repairs- 0% transfer

mrs_baggins

I need urgent repairs doing to my house which is going to cost the £1700 I dont have! If I leave it the repair will maybe get out of hand so it has to be done. A small builder will be doing it so its going to have to be cash I give him. Now would it be economically viable for me to withdraw money on my existing tesco credit card then set up a new 0% transfer card and trransfer the debt to that? I have good credit rating so getting a card should be fairly ok its just the timing of it to work out. I know you always pay off the cash withdrawals first but I think I only owe about £600 on it at present. Not sure if its the best way to go though? I could pay it off within 12 months

awaytogoyet

Hi there - Just a few thoughts, Mrs Baggins:-

1: Have you contacted your house Insurer - just wondered if it's something that might be covered by your policy?

2: Is it something you could get a grant for?

3: Others here who have much better financial knowledge than me will be better placed to advise, but IMO withdrawing cash on a CC can be very expensive. I did it once & learnt the hard way! It attracts a higher interest rate (even if it is a 0% Card) & stays there until the whole balance is paid off. Then, if for some reason you couldn't get another 0% Card (they are much harder to get now) - you are stuck with it until you can pay the full balance off.
If you have to get a Loan, possibly a 'Home Improvement Loan' from your Bank (or another Bank - need to shop around for best rates) might be a safer bet & lower interest in the long term.
I don't know your personal circumstances, but is it something you could effectively add onto a mortgage & pay back over a longer period? - again need to compare rates carefully.

4: I really don't mean to sound negative, but my neighbour recently had a very bad experience with a 'small builder who wanted cash'!
Obviously he will not be putting it through his books (thereby saving you VAT, they usually say!), which IMO is entirely his business, but it leaves you very vulnerable, with no redress at all, if something goes wrong. Because he isn't putting it through his books, there is likely to be no paperwork - no quote, no receipt etc.
If there is no written quote, that means (as in my neighbours case) your £1700 job can suddenly escalate into a £2700+ job (they claim there were hidden problems once they start the job) & there is *** all you can do about it. If there is no receipt when the job is finished & if it turns out to be a disaster & needs re-doing, again you have no claim.
Trading Satndards, Courts & all the other organisations will not be interested if you have effectively assisted someone in breaking the law & more importantly you would have no written proof anyway.
Arguably there is a case for paying cash for a very small job - but £1700 is a lot of money, so it must be something quite substantial, for which some cover/guarantee for you, should be essential.

5: I put together a little check-list for my elderly neighbour after his awful experience, which might be useful:-

* Could the work be covered by house insurance?
* Can you get a grant for it?
* If not, think carefully about how you will fund it.
* Research Tradesmen & choose at least 3 to give you a written 'Quote'. Choose Tradesment that come recommended (by friends, neighbours) & are approved/certified by the relevant professional
Association (essential now for Electrical work, for example). Trading Standards can advise.
* Make sure it is a 'Quote' not an 'Estimate' (latter can change substantially)
* Make sure 'Quote' details exactly what the job entails & what they will do. Plus have they costed by 'the job' or by 'the hour/day'? You really need a cost for the job - otherwise they can stretch
out how long it takes. Also, the quote should detail payment terms & state how long the work is guaranteed for.
* Payment terms should not insist on cash. Also try & avoid paying up front in full. Some may need the cost of materials up front, but should not need the full amount until the job is finished.
* Compare 'Quotes' carefully & do some of your own research on the materials involved - you might be better sourcing the materials yourself - lots of good online sources now. I just had a plumbing
job done & saved a fortune by sourcing my own sink & taps from Plumbworld.

Hope I haven't sounded too negative & all that might be useful.

Lots of luck with it

mrs_baggins

thanks for getting back.

Its nothing that i could claim on insurance sadly. mainly wear and tear but stuff that has too be done before winter. I am at work full time with no children so no grant available.

Its my neighbour who is builder and I trust him 100% so no problems there. Its a good price for whats entailed compared with others to be fair. Have phoned tesco and max i can take out is £300 a day with overall max of £1500 but the fees on doing so will be too much. I will have to keep thinking! but thanks for input

ollski

Think all the cc companies now have to let you pay off the highest cost debt first ie cash, I know barclaycard does because they sent me the new t&cs this week as did capital one. So yes in theory you should be able to transfer it to a 0% card and pay it off. Check all the t&cs.