cc's not sure whats best

jojododd

Hi there Im not sure which way to do this. If you could advise me on which way is best I would appreciate it. Here goes:

I applied for a barclaycard platnium and to my surprise I was accepted. 18mnts interest free for balance transfers.

This afternoon I had a letter from cap. 1 informing my my limit had been increased from 1000 to 2000. (this also was a surprise).

I have 3 cards with the following rates:

capital 1 460.00 30.340%
mbna 1000.00 1.2916%
lloyds tsb 1313.93 1.597%

I cannot transfer the lloyds debt on to barclaycard. So I thought I would put mbna's 1000.00 or there abouts on it. Then pay it off at approx 60 per month. Whilst paying 30 per month to tsb. I am tackling capital one in chunks, as much as I can afford.

Would this be the best way of doing things? I have done a S.O.A. previously and cannot make any further savings.

Thanks for any advice

Jojo

Clarie_2

Hi jojo, have you tried using the snowball calculator (sorry can't post links). Enter in your different debts, aprs etc and it will tell you what to do.
Couple of qs:

1)How much credit have barclaycard given you?
2)Are the interest rates you've quoted monthly or yearly? (yearly are aprs)
3)How much money do you have for debt repayment each month?

First - your mbna. I take it you are overpaying on this card first? Work out roughly how long it will take you to pay it off, and how much interest you will be charged. Next work out the fee for transferring it (around 3% of the total). If the interest is more than the fee, transfer it to your barclaycard. Otherwise, keep on as you are and pay it off. You can refuse the rise in credit limit if you don't wantexcess unsed credit around, though it's possible that when it's empty they then start offering you good balance transfer rates.

Second, yes, transfer the mbna on it. Pay minimums untill your capital one is gone, that is your priority! After that, you've got a choice - you can pay minimums on the barclaycard and pay off the lloyds (as that then has the highest interest rate) and hope that by 18 mnths time either your empty cards or a new card will offer you another 0% deal (very possible as it seems you have a good credit rating).
or you can pay minimums on the lloyds and pay 60 a month on the barcalycard as you've suggested.

The first way you pay less interest, but you must move the debt in 18 months time! Martin has a tart alert you can use to remind you of this.

The snowball calculator can help you see how long it will take you to pay off the debts, which might affect your decision too.

Hope that helps

Clarie

DVardysShadow

Clarie wrote: »

Hi jojo, have you tried using the snowball calculator (sorry can't post links). Enter in your different debts, aprs etc and it will tell you what to do.
Couple of qs:

1)How much credit have barclaycard given you?
2)Are the interest rates you've quoted monthly or yearly? (yearly are aprs)
3)How much money do you have for debt repayment each month?
....

The snowball calculator can help you see how long it will take you to pay off the debts, which might affect your decision too.

Snowball calculator http://makesenseofcards.com/snowcalc.html

jojododd

cheers guys I used the snowball calculater. I have been given an estimate of 20mnts to be debt free but, Im going to make it my mission to try and pay it off quicker, Its addictive this money saving isnt it!

It is yearly aprs and the limit is 1200. I am hoping to clear it in a year.

Jojo