Gradual stealth balance transfer from card A to B (Crazy idea?)

blackbug

I've had an idea come to me, sorry if this has already been discussed/debunked.

Card A has about £3000 @ 30% (plus more at 20%).
Card B has 20% purchase rate.

If I'm right on reading the way payments are treated now when I make a payment to Card A the money comes off the 30% balance first?

So my plan would be to transfer the balance to card B gradually buy purchasing items (petrol, groceries etc. All within my means) on Card B. Then immediately paying that amount off card A. All within my monthly budget, not spending anything I wouldn't normally.

So eventually over the course of the next months/year I could have moved that money onto card B, by stealth almost.

An added bonus being that Card A (Barclaycard) might still have the 6.9% for life transfer offer going on. So at that point I could transfer the money back. And perhaps even start again with the 20% balance.

Is this insanity talking?

I am unable to apply for more credit/cards or loans at the moment. So just trying ideas to shuffle things about.

Sharon87

It's not insanity as such, just very difficult to keep track of things. What's your income like? Can you use any student loan/part time work to pay some of the 30% card off? How good is your credit rating, do you think you'll get accepted for a 0% balance transfer card?

I tried paying off my old student overdraft with my credit card by spending on the card and paying off the overdraft with wages, but it didn't work. I just got into more debt! So now I'm going to balance transfer it to a 0% card, (just been accepted) and reduce my overdraft limit massively.

It can work if you're disciplined, but I'd see if I can find anymore income, whether work or selling items on ebay to help get the debt down quicker, as oppose to just shifting it.

Norfolk_Jim

I've done that sort of thing but you'll need to be good with keeping track of your figures or you could get in a muddle.

CLAPTON

makes perfect sense

reduce the balance as much as possible on the debt with the highest APR .
So never spend on the 30% card and pay as much each month to reduce the balance the sooner.

blackbug

Thanks guys. To answer the points quicky. My entire life is managed by a spreadsheet now (has been since 2009) so I'm entirely discliplined about everything and every outgoing trimmed back. Income is good, I can cover all my payments and more. When I turned things around in 2009 I had over £60k of unsecured debt. That's just about to go below £50k and seems to be accellerating.

I can borrow no more, nor get any more cards (despite having a decent credit rating due to being a "good" borrower, I've got just too much for anyone to take the risk). Even a letter from my bank manager describing how well I manage funds wouldn't pursuade anyone.

Can't work any more than I do.

Oh, and I've sold anything on eBay that wasn't nailed down a lot time ago

Thanks again. Much appreciated.

chattychappy

Yep, you've worked it out well.

Keep a look out for other cards/offers...

Certainly use the 6.9% offer if you can. That will shift some of the "minimum payment" burden to the Barclaycard... which is great cos it will then be applied against your highest rate (rather than the 6.9%). (Now some of your monthly minimum is wastefully applied to the 20% balance... which of course it must be whilst you have a 20% balance.)

The "golden rule" of not mixing spend and a BT on the same card is now tin-plated at best. It is actually rather complicated to work out what is best in a situation.