CC payment plan or new CC 0% Balance transfer?

gregdedman

Hi everyone,

Im trying to figure out the best way to go with my CC debt.
After fighting and fighting I got HSBC to freeze my charges and interest on my £2000 debt at 25% APR agreeing to accept £1 per month after I lost my job.

I now have a job but still have very little to pay them at the end of the month. Amazingly I got accepted for Barclays new 17month 0% Balance transfer card and am wondering whats best to do. Of course if I stick with the HSBC plan ill default, although no charges will appear, however do I also need to inform HSBC of a change in circumstances regarding the job?

Im swaying towards Barclaycard as whatever I can afford each month all goes towards paying the debt and not the flaming interest....saying that, will Barclaycard, at 0% still ask me for a minimum monthly payment? and any idea what they may be to figure out if I can afford it.

Any help or advice would be great.

Regards
Greg

Hax

If you transfer to a 0% card, you still have to make a minimum monthly payment.

Myself, I would transfer the balance from the HSBC card just so you're not accruing interest.

As an aside, have you had a look on the Debt Free Wannabe section? There's lots of help and advice there on how to reduce your outgoings and knock your debt down in the fastest possible way.

MFWannabe

Barclays will still require a minimum payment which i believe is 2.25% of the amount outstanding. Don't forget also you will have the 2.9% transfer fee to add to the £2000 you will be transferring

But personally if it was me i would transfer it to Barclays as you won't be paying the high interest on your current card. You also need to get on to the DFW board to find out how you can make some cutbacks to pay off this card

chattychappy

If you miss a payment on Barclaycard then you will immediately lose the promotional offer - and may well go onto something not dissimilar to the 25% - perhaps worse. (And then you'll have the hassle of negotiating with them as you did with HSBC.)

So I would only transfer a balance such that you can be sure you can keep up with the minimums.