Advice please

ElmerFudd

Thanks to everyone for reading this.
I have a bit of a quandary.
I have a number of credit cards including a Lloyds (which has approx 3k limit on it, 21% APR, current balance 0), another Lloyds (12000 limit on it, 24.9% APR, current balance approx. 10k), Halifax (8k limit, 6.95% APR, approx £7700 balance), and a Barclaycard (1650 limit, 6.95% APR, approx 1600 balance - possibly more as I have a payment going through + as of today they have lowered the credit limit without advance warning).

My quandary is this. When I logged into my online banking the other day for Lloyds I was told I could get 0% for 6 months with balance transfers. I am not sure exactly which Lloyds card it was referring to but that could mean either way that I will be able to balance transfer at least 2k to one of the cards at 0% APR for 6 months. The fee for the transfer will be 3%.
At the moment I can just about afford all my bills, with a little more pumping into the high APR card.
If I balance transfer, say, the Barclays debt onto one of the Lloyds card I run the risk of Barclays deciding to lower my limit again at any moment, however if I do this I will potentially have the following:

10k at 24.9% + 1.6k at 0% on the Lloyds card
7.7k at 6.95% on the Halifax card

then after:

8.4k at 24.9% +1.6k at 0% on the Lloyds
7.7k at 6.95% on the Halifax card
1.6k at 16.9% (current rate for Balance transfers) on the Barclay card

Should I do this? At the moment the Barclays debt is 6.95% for the life of the balance and I would run the risk of them jacking the interest if I do this.

Any advice would be gratefully appreciated.

moneysavermum_2

how are you managing to service these cards at the moment. Changing to a 0% card will give you only 6months to pay that card off. have you tried snowballing.

List all the cards and balances in order of highest interest. If you post a soa I think people will be able to help. nothing is unmanageable but it looks like you need to take control of this situation and aiming to get at least one cleared.
I would aim to get this cleared first as its the lowest owing and pay minimum on each other till then
1600 interest rate 6.95 Barclaycard limit 1650

10000 interest rate 24.9% Lloyds limit 12000
1600 interest rate 6.95 Barclaycard limit 1650
7700 interest rate 6.95% Halifax card limit 8000
0 interest rate 21% Lloyds card limit 3000

Is this right are these all your debts or are there more. Please put how much you are paying for each

YOU HAVE LISTED:
Lloyds (which has approx 3k limit on it, 21% APR, current balance 0)
Lloyds (12000 limit on it, 24.9% APR, current balance approx. 10k)
Halifax (8k limit, 6.95% APR, approx £7700 balance)
Barclaycard (1650 limit, 6.95% APR, approx 1600 balance

you need to know exactly how much you owe and to whom and at what rate. If you pull your credit file it would tell you this. If you want to take control of this.......youll need this information.

ElmerFudd

nje24 wrote: »

how are you managing to service these cards at the moment. Changing to a 0% card will give you only 6months to pay that card off. have you tried snowballing.

List all the cards and balances in order of highest interest. If you post a soa I think people will be able to help. nothing is unmanageable but it looks like you need to take control of this situation and aiming to get at least one cleared.

10000 interest rate 24.9% Lloyds limit 12000
1600 interest rate 6.95 Barclaycard limit 1650
7700 interest rate 6.95% Halifax card limit 8000
0 interest rate 21% Lloyds card limit 3000

Is this right are these all your debts or are there more. Please put how much you are paying for each

YOU HAVE LISTED:
Lloyds (which has approx 3k limit on it, 21% APR, current balance 0)
Lloyds (12000 limit on it, 24.9% APR, current balance approx. 10k)
Halifax (8k limit, 6.95% APR, approx £7700 balance)
Barclaycard (1650 limit, 6.95% APR, approx 1600 balance

you need to know exactly how much you owe and to whom and at what rate. If you pull your credit file it would tell you this. If you want to take control of this.......youll need this information.

Hi. Thanks for your help . I haven't tried snowballing yet but will give it a go.

Currently:

10k interest rate 24.9% Lloyds card - minimum 2% but actually pay £250 to £300 a month
1.6k interest rate 6.95% Barclays - minimum £34 but pay £37 a month
7.7k interest rate 6.95% Halifax - minimum 1%, paid minimum this month

I usually have £360 to £410 to go onto the cards (once everything else is paid for).
My other debts are all in the form of loans.

ElmerFudd

I have punched the numbers into the snowball calculator and although it would bring paying off the high interest card by 5 months ultimately it will take the same amount of time for the total debt (and I would only pay £41 more in interest!!), so it's not worth it. Thanks for the advice

moneysavermum_2

If you can get any of these debts over to a lower interest I would but preferably longer than 6months . As for the barclays I would make steps to reduce this balance especially after they have lowered your limit.

I would personally pay:


10k interest rate 24.9% Lloyds card - minimum

1.6k interest rate 6.95% Barclays - pay £250-£300 most you can afford

7.7k interest rate 6.95% Halifax - minimum


then get that cleared or down to £1000, then go back to making large payments on the 24.9% card

ElmerFudd

nje24 wrote: »

If you can get any of these debts over to a lower interest I would but preferably longer than 6months . As for the barclays I would make steps to reduce this balance especially after they have lowered your limit.

I would personally pay:


10k interest rate 24.9% Lloyds card - minimum

1.6k interest rate 6.95% Barclays - pay £250-£300 most you can afford

7.7k interest rate 6.95% Halifax - minimum


then get that cleared or down to £1000, then go back to making large payments on the 24.9% card

I think it will be a while before I'll be able to get some long term 0% deals. I am definitely tempted to pay off the Barclaycard in full despite it being at 6.95% simply because they have been messing me around, but I will crunch the numbers again over the weekend, since I might be missing something.