GMAC - Car Finance.

Hi,

Im sorry if this is a question that has been answered in different threads, or if the answer can be found in the stoozing articles, but i require a direct answer.

I have around £5k debt with GMAC, the car finance company. I stupidly took out the policy over 60 months in 2010 and i wish to pay it off before me and my fiancee leave for america next year.

So, i would like to pay £5k debt off in 12 months.

Would a balance transfer credit card be what i need? Could i transfer the balance from GMAC to a 0% interest card, and pay 400-450 off per month for 12 months to wipe off the debt? I realise some credit cards incur a charge, but i was just wondering if this was as straight forward as it seems.

I am paying 20.5% fixed APR at the moment, so im sure i could either find a 0% card or something that would be much lower.

Any help would be very appreciated, im new here.

Thanks again.
Debts:
Car:
[STRIKE]£4844.34[/STRIKE] £0!
Wedding: [STRIKE]£2500[/STRIKE] £1000

Deadline - June 2013 (Immigration to USA)

Replies

  • EonelEonel Forumite
    451 Posts
    Few things to bear in mind....

    Have you phoned GMAC to ask for a loan settlement figure? This may be different to the amount you think you owe them.

    Then get a low rate bt credit card (ideally 0%) card that allows cash transfers to your bank account. BTs will incur a fee of typically 3%. Watch out for the credit limit they give you - typically they will only allow you to bt 90% of your credit limit.

    You could try asking GMAC if you can settle your account with a credit card payment. They may not allow this at all or will charge a premium. If they do allow it then you need to find a credit card with 0% on purchases.

    Good luck.
  • AdamKelsAdamKels Forumite
    61 Posts
    Thanks for the swift reply, you were very helpful.

    Because i don't really have a credit rating as such (i have never used a credit card), my limit would be low, around 2000 i assume. Could i take out a couple of cards to cover the 5k?

    Thanks again,

    Adam
    Debts:
    Car:
    [STRIKE]£4844.34[/STRIKE] £0!
    Wedding: [STRIKE]£2500[/STRIKE] £1000

    Deadline - June 2013 (Immigration to USA)
  • TixyTixy Forumite
    31.5K Posts
    AdamKels wrote: »
    Thanks for the swift reply, you were very helpful.

    Because i don't really have a credit rating as such (i have never used a credit card), my limit would be low, around 2000 i assume. Could i take out a couple of cards to cover the 5k?

    Thanks again,

    Adam

    there is no real way of knowing what limit you will get on a card until you apply.

    You say you don't really have a credit rating but you do at least have this current loan. Do you have any other credit accounts?

    You could in theory get 2 cards with lower limits - but there are only a limited number of issuers that do cards that allow money transfers/cash transfers. And if you get accepted for 1 that might then affect your ability to get another.
    A smile enriches those who receive without making poorer those who give
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  • AdamKelsAdamKels Forumite
    61 Posts
    I actually applied for 2 credit cards, one from TSB and one from Barclays, in order to take advantage of their air miles schemes. Unfortunately i messed up, leaving these cards unused.

    I haven't borrowed any other money from any other issuer.

    I just called GMAC and recieved my quotation, they explained to me that paying via credit card incurs a 2.5% charge. Therefore if i applied for two cards and paid in two installments, the charge would be 2.5% on 4844.34 and another 2.5% on the remaining balance.

    But on the other hand, a BT would incur a charge for both, so i really need to find one without a charge. Im hoping to have it paid within 12 months.

    How hard would it be to be issued another card? I didn't think it would be that much of a problem, i thought that's how people ended up in debt! ha.

    Is there any way of negotiating a credit limit with a issuer? Or is it set?

    Thanks for your input. Greatly appreciated.
    Debts:
    Car:
    [STRIKE]£4844.34[/STRIKE] £0!
    Wedding: [STRIKE]£2500[/STRIKE] £1000

    Deadline - June 2013 (Immigration to USA)
  • edited 21 March 2012 at 6:35AM
    EonelEonel Forumite
    451 Posts
    edited 21 March 2012 at 6:35AM
    If GMAC charge 2.5% on credit card payments then a credit card with a promotional rate for purchases is your best bet.

    You will pay 3% on a cash balance transfer + the number of cards offering this are limited. There is no way to do it for free.

    Your "on the other hand" comment is confusing - promotional rate on purchases is the cheapest option for you.

    You can but try to apply for two cards but credit is not as easy as it used to be - too many people ended up in debt!

    Credit limits are determined when you apply. Negotiation is normally only possible after at least 6 months of good usage.

    If you still have the tsb & Barclay cards open then they will count towards your available credit even though the cards are not used. You will need to close them & wait at least a month.
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