Best card 28 March 2012 at 2:15PM in Stoozing: free cash from credit cards 7 replies 1.3K views

jm1

Hi All

I'm looking for some advice regarding shifting debt to a credit card.

I've currently got with Nat West:
1) a credit card with approx £700 balance
2) an account with approx £1500 overdraft

Is there a credit card I could transfer the existing card balance and get a cash advance for, and then pay just 0% for a specified period?

If not, what's the least expensive way to pay off the overdraft?

Many thanks

Tixy

If you were able to get a new 0% card that allows money transfers (aka super balance transfers) with a sufficent limit you could do a regular transfer from it to pay off the natwest credit card, and a money transfer to pay off the overdraft.

There is a % fee for the transfers (some cards have a higher money transfer fee than regular transfer fee). Whether this would work out cheapest option, and cheaper than your existing debts depends on how quickly you can repay the debt.

New cards that offer this facility are listed here - http://www.stoozing.com/sbt.php

Whether you would be accepted for one of these cards will of course depend on your finances, income and credit file etc, the same as any other credit. In general they are not the easiest cards to get, you'll usually need a near perfect credit history.

waddy52

Hi, Sorry if this message has come in on the wrong place .I'm not very good at technology
Can anyone help/advise me? I have a 'smile bank' visa credit card on which I owe £3400 (credit limit of £6500) but my income has dropped recently so I am only paying the minimum amount each month, so the balance isn't really being reduced. I've been into the bank to discuss my problem but they've only been able to offer me a loan, which I'm not sure is the best plan for me. My question is this, would I be best taking the loan offer or should I try to shift my debt to another card? Any advise would be welcomed...I'm really worried at the moment.

Tixy

You say your income had dropped, how much are you now earning and do you have any other debts in addition to this card debt?

If your income is relatively low you may struggle to get a new card with a sufficent limit.

What is the APR on the current debt? WHat is the APR on the loan you have been offered?
Wll the monthly loan repayment be less than the minimum payment on the card?
Have you worked out an income & expendituure statement to see realistically how much you can afford a month towards the debt?

waddy52

Sorry I've taken so long to reply. I'm finding it difficult to find my way around this site. Anyway here goes. I've looked at the details the bank supplied me with.
The APR (whatever that means) on the credit card is 16.9%. You get 56 days interest free, provided you pay off the balance in full (which I can't do now) and there is a 0.25% cash back on purchases, although that won't affect me anymore.
The loan I've been offered has an APR of 7.9% and an interest rate of 14.70%
I am currently paying around £50 per month on the card, the loan would be £93.81 for 47 months giving me a total of £4,502.71.
I could afford this, but as the debt won't be paid off for 4yrs, I wondered if I would be better trying to move the balance to a 0% card and saving just over £1,000 in interest. I have no other debts and my income in approx £10,000+ per year.

waddy52

I've applied for a Balance Transfere to Natwest/RBS and been accepted on 0% for 20mnths. I have 14days cooling off period if it's not right for me, but thought I ought to get things moving asap.

Tixy

Are you sure the APR on the loan is 7.9%? and thats for a loan of £3400 over 47months? Or have they 'rounded up' the amount you want to borrow?

£3400 over 47monts at 7.9% APR should only be around £85 a month?

If you stick with your current card and could pay £100 a month then your debt would be paid off in 46months and cost £1170 in interest (so £4570 as the total figure).

Given your wage you may well struggle to get another card with a 0% promotional deal at all, and one with a high enough credit limit. If you could get one then it might well be a good idea, but it depends on how long the 0% period is, what the transfer fee % is and what APR the balance will go to at the end of the promotional period.

Edit - oops sorry I hadn't seen your last post when I replied! Good news on the acceptance.
Have you been told the limit on your new card?

waddy52

Hi, Yes I think they did round it up. The credit limit £5500 (well just over actually) but as I don't intend spending on it, it doesn't matter. I just need to remember in 20mnth or just before to transfere again, if there is anything left on that is...hopefully I'll have managed to clear it, fingers crossed.