Newbie question

MadAsAHatter

Hi guys, just asking a quick question over here in relation to my post in another section.

My Fiance and myself owe about £16,000 owing on an Asda card and a consolidation loan to Barclays.

I would like to move this to a 0% card to start actually moving this debt instead of just paying interest.

Most of the existing debt is in my Fiance's name so I have an excellent rating according to equifax.

Is there any particular card companies I should be applying to over others? Like I said we have an Asda card and until it was consolidated we had an MBNA one too.

These were in my partners name though. Will it make a difference to my application if you see what I mean?

The loan is for £12,300 so I would assume I would need at least 2 cards (£5,000 limit guessing?) how many is too many to have ?

Could I realistically get three 0% cards.

Thanks guys, we have definatley had our "light bulb moment" and are determined to sort this out so it doesn't hold us back any longer.

CLAPTON

what does your credit record say
what is your income
what are your debts
what credit cards do you have already
do you use your OD regularly

how much will be be paying back in the next 12 months

fawinds

It is difficult to tell you what you want as credit card issuers will take into account many facts you have not told.

Nevertheless I would tackle the situation not by wondering whether you can get three 0% credit cards with individual credit limits of £5000. Just apply for one and see the outcome. Then apply for another. If you are not successful with the two applications, stop it at that point.

If you have an excellent credit rating, chances are you can get one with a good limit. I just got one from HSBC after banking them for 6 months, and they have offered me £2000 and 15 months at 0% despite I have a very short credit history.

If you have a good history of account conduct, try with your own bank first as they are more likely to offer you a better deal.

Anyway, remember that if you manage to get three credit cards with 0% offers, you will have to pay at least the minimum payment for all of them.

MadAsAHatter

Thanks guys here is my SOA. We haven't used our overdraft at all until the last 3 months or so. I didn't want to approach barclays for a card as that is who the loan is with for the 12,300 and although the debt consolidated was in my partners name we share a joint account.

Thanks for input guys.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2197
Partners monthly income after tax....... 820
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 3151
Monthly Expense Details
Mortgage................................ 530
Secured/HP loan repayments.............. 190
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 117
Electricity............................. 104
Gas..................................... 104
Oil..................................... 0
Water rates............................. 56
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 13
Satellite/Cable TV...................... 49
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 15
Car Insurance........................... 41
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 376
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 16
Buildings insurance..................... 30
Contents insurance...................... 0
Life assurance ......................... 58
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2154

Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 193000

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 118425...(530)......2.5<
2nd mortgage loan..............30289....(190)......5.63
Total secured & HP debts...... 148714....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Asda m/card....................4780......134.......21
Tesco loan.....................5460......108.......8.9
Barclay loan (consol)..........12300.....355.......26.9
barclay loan 2.................3100......183.......7.98
Total unsecured debts..........25640.....780.......-

Monthly Budget Summary
Total monthly income.................... 3,151
Expenses (including HP & secured debts). 2,154
Available for debt repayments........... 997
Monthly UNsecured debt repayments....... 780
Amount left after debt repayments....... 217
Personal Balance Sheet Summary
Total assets (things you own)........... 193,000
Total HP & Secured debt................. -148,714
Total Unsecured debt.................... -25,640
Net Assets.............................. 18,646

ironlady2022

Because you are paying a loan off you will need a credit card which allows for a 'super balance transfer' whereby money is transferred into your account and it's your responsibility then to pay it off. Bear in mind if your new limits do not meet the £12300 required to settle then I believe the bank do not allow for over payments- however you need to check with bank.

MadAsAHatter

Ah right, so say for example if I get a card with a £5000 limit I may not be able to just transfer that leaving £7300 on the loan.

Thanks for that.

MadAsAHatter

The loan small print denotes-

"You can repay the loan in full or part at any time. If you decide to end early we will charge you a fee equal to 30 days interest calculated on the ammount you owe us. We will not charge you this fee where you have chosen to exercise your right to withdraw from the loan within the first 14 days starting on the date on confirmation."

So if I transfered 5k to a 0% card would they charge me the interest on just that 5k yes?

Thanks for all advice guys. This is a very good forum.

Or does it in fact mean there's no charge unless I "end" the full thing?

MadAsAHatter

mayling03 wrote: »

Because you are paying a loan off you will need a credit card which allows for a 'super balance transfer' whereby money is transferred into your account and it's your responsibility then to pay it off. Bear in mind if your new limits do not meet the £12300 required to settle then I believe the bank do not allow for over payments- however you need to check with bank.

Thanks for the reply, I have been reading about using the egg money card as a "mule card"

In your opinion would it be a good idea?

As I understand it I can use it to avoid the 4% fee that a "super balance transfer" card would charge (equates to nearly £500)

jonesMUFCforever

Before making this transaction has OP thought through what will happen at the end of the 0% period?
What if he has not paid off the balance - what then instead of paying x% on the loan he will be paying xxx% on the card.
Not a good idea IMO.

MadAsAHatter

jonesMUFCforever wrote: »

Before making this transaction has OP thought through what will happen at the end of the 0% period?
What if he has not paid off the balance - what then instead of paying x% on the loan he will be paying xxx% on the card.
Not a good idea IMO.

The loan is 26.9% apr. So it's a poor rate as it stands.

After the 0% rate has finished I can swap to another card offering 0% no? Cheers.

jonesMUFCforever

MadAsAHatter wrote: »

The loan is 26.9% apr. So it's a poor rate as it stands.

After the 0% rate has finished I can swap to another card offering 0% no? Cheers.

You are making a lot of assumptions - would it not be better to concentrate on overpaying thus reducing the interest payable.