BT question over 2 cards

Mozzi

I have 2 ccs at about 75% of their limits, with roughly equal interest rates.
I have been offered a 0% BT option on both, but have never done a BT before.
Can I BT from CC1 to CC2, and then some back from CC2 to CC1? Will I get a 0% deal on both cards for the amounts transferred? When I do CC2-CC1, will the highest interest debt be transferred or could they just shift the 0% portion back again?
Confused :undecided

Tixy

Yes in theory you can do it and end up with some of both of them on 0% deals. You will need to check what figure you can BT up to - on many cards it only up to 90% or 95% of the limit, so you may only be able to move 15% across.

Thats providing one company doen't withdraw their offer first (which can happen sometimes)

The company have to pay off the most expensive debt first, so your second BT will pay off your normal balance before your 0% balance.
But some lenders will only allocate your payment/balance transfer to a transaction that has appeared on a generated statement - so you need to double check your terms & conditions regarding allocation of payments - you might need to leave some time between the 2 transfers.

Presumably the cards are from different card providers? (as you cannot do BTs between the same provider).

How long 0% deals have you been offered? and at what balance transfer fee? and what is the current APR on the debts? Have you checked it will save money overall when factoring these items in?

HappyMJ

You need a CC3. To avoid paying interest on current debt you need to pay them off in full first then make a BT so that the whole outstanding debt is at 0%. What limits do you have and can you pay them off in full with your next pay packet. Once paid off you can use them to BT back to your current account via a super BT card or just simply spend on them if purchases are at 0%.

What I would do. Pay off the card with the lowest balance with your next pay packet. Then do a 0% BT for the full amount of the credit limit paying off CC2 in full if possible. Then use CC2 for purchases for the next few months paying it off in full with your next pay packet after this month.

Mozzi

Thanks for the quick replies.

Tixy, MBNA and HSBC, so not the same provider. I will check transfer fees and duration of offers, I was just hoping that any respite of 0% for however long would help pay off the balances quicker. I know I won't be able to transfer much, but maybe any amount is better than zero?

HappyMJ, unfortunately the balances are greater than any one pay packet, and any CC3 would be unlikely to have a limit to cover either balance (£6k on each).

Neither is being spent on anymore and I overpay where I can, just wanted to make this happen quicker.

bigadaj

Safest solution is to transfer onto one card the largest outstanding balance at 0%, then overpay that card as fast as you can assuming that this is eh highest rate. This is a form of snowballing as your additional payments will be reducing the balance more quickly.

If you supply exact amounts and available balance on each card, interest rate on each card and your salary then specifics could. Be detailed.