The 0% card shimmy

Cookiee

Hi all x

Need some clarification if my plan will work ...

I have 3 credit cards as below as well as 2 loans:
H.Fax = £2000 @ 0% until June 13 - pay £200 a month
BofS = £1900 @ 0% until May 13 - pay £200 a month
B.Card = £1000 @ 0% until Sept (ends on the 20th) - £100 a month
BH Loan = £3700(ish) at 16% apr - £200 a month
Cloan = £4450 at 16% apr - £200 a month

Now my fab OH has an excellent credit rating (according to mon.sav.mar) and has been accepted for a shiny new balance transfer card for 22 months.

We are hoping the limit is going to be approx £5k (according to their customer service this should be fine or even slightly higher) so I was planning on doing the following:

1 - transfer both H.Fax and BofS cards to OH card.
2 - transfer my B.Card to H.Fax card
3 - transfer the H.Fax card to OH card = both H.Fax and BofS cleared = OH new card with a balance of £5000
Obviosly this will be slightly amended depending on the actual limit given. I can then pay £300 a month and use the extra £200 to pay towards the loans (maybe a £100 extra each or £200 on the C loan to reduce it quickly.

4 - pay £1700 off my BH Loan with BofS then do an immediate balance transfer from BofS to H.Fax card so the £1700 goes onto a 0% until June 13

Now this all has to be done within 60 days from getting OH's new card as the terms of the tranfer are stated must be done in 60 days of account opening.

Do you think this is possible? Do you think this is good idea or is there a better way of doing it?

If I keep at our payments now, I would be debt free in approx 14 months (credit cards) but if I transfer it all to 0% 22 month card I can pay 1 payment and consentrate on using the excess on the other debts to bring them down.

Your suggestions / comments would be gratefully received

thenudeone

Loans can't usually be cleared by a balance transfer because they don't have a 16-digit card number which you new card provider would use to process the payment.

If the new BT card offer includes 0% on money transfers into you bank account you could use this to pay off the loan, but these offers are uncommon.

Alternatively use another card which offers money transfers, then immediately clear that card with the new BT card. There will be 2 sets of fees, though.

Also - check what penalties there may be for early repayment of the loan

You should never pay more than the minimum payment (or just over the minimum, to avoid "minimum payment" markers on credit files). Instead put the spare money into a savings account and you'll have a few pounds extra left over when you need to pay the remaining balance.