When should I balance transfer

debtcutter

mikeopvc wrote: »

Virgin card is 29.95%
Halifax card is 23.9%

I've been make overpayments to the virgin card and leaving the halifax card at minimum payment.

OK great, I must have read your post incorrectly, I thought you were paying more off the cheapest one. LOL.

You've been doing the right thing up until now then.

So just to get this straight, right now you have :

- 0% balance transfer offer on virgin for around a year.

- On the same virgin card the purchase rate is 29.9%.

- Halifax card with balance transfers AND purchases @ 23.9%

What is your current amount owed to Virgin and to Halifax?

What is your credit limit on each?

That info will make it quite easy to explain what to do next.

mikeopvc

debtcutter wrote: »

OK great, I must have read your post incorrectly, I thought you were paying more off the cheapest one. LOL.

You've been doing the right thing up until now then.

So just to get this straight, right now you have :

- 0% balance transfer offer on virgin for around a year.

- On the same virgin card the purchase rate is 29.9%.

- Halifax card with balance transfers AND purchases @ 23.9%

What is your current amount owed to Virgin and to Halifax?

What is your credit limit on each?

That info will make it quite easy to explain what to do next.

Virgin card credit limit is £6000
Balance is £3479.27

Halifax card credit limit is £8,100
Balance is £7,500.70

debtcutter

OK then:

If I were you (and I'm not, so this is just one man's opinion) I would immediately transfer the maximum that I could from my Halifax card to my Virgin Card.

As credit card companies have to clear the highest debt first (on the virgin card, that would then be purchases @ 29%, unless you've made cash withdrawals?) I'd keep paying the minimum on the Halifax card until the point I had managed to clear the purchase balance on the virgin card completely, then I'd drop virgin down to the minimum payment (as it'd only have balance transfer debt of 0% left) and increase my payments to Halifax.

That assumes you manage to clear your virgin purchase balance before your balance transfer offer runs out.


Like I say, that's what I'd do. Sure others will have an opinion too.

mikeopvc

debtcutter wrote: »

OK then:

If I were you (and I'm not, so this is just one man's opinion) I would immediately transfer the maximum that I could from my Halifax card to my Virgin Card.

As credit card companies have to clear the highest debt first (on the virgin card, that would then be purchases @ 29%, unless you've made cash withdrawals?) I'd keep paying the minimum on the Halifax card until the point I had managed to clear the purchase balance on the virgin card completely, then I'd drop virgin down to the minimum payment (as it'd only have balance transfer debt of 0% left) and increase my payments to Halifax.

That assumes you manage to clear your virgin purchase balance before your balance transfer offer runs out.


Like I say, that's what I'd do. Sure others will have an opinion too.

OK thanks, so I need to balance transfer £2,400 onto the virgin card taking me back up to the 6K limit?

debtcutter

They probably won't let you do the full £2,400 as there's usually a balance transfer fee (last time I did one it was 2.5%), which will be added to the balance, then they quite often ask you to leave a little buffer so that next month's interest doesn't take you over the limit.

I would do that though, yeh.

Anyone disagree and would do it differently?

mikeopvc

Yes there is a fee of 5% which is why I said £2,400 + £120 fee leaving 73p credit:D

Better not do that then, maybe £2,300 or even £2,200?

tonkinator

tbh they'll prob tell u whats the max you're allowed to do.

For what it's worth, i'd do the same as he's advising.

mikeopvc

tonkinator wrote: »

tbh they'll prob tell u whats the max you're allowed to do.

For what it's worth, i'd do the same as he's advising.

OK thanks so I'ts probably best to call them as opposed to do it online, Is it worth asking them for a credit limit increase first to get more on the 0%rate?

SCO

mikeopvc wrote: »

OK thanks so I'ts probably best to call them as opposed to do it online, Is it worth asking them for a credit limit increase first to get more on the 0%rate?

That is the best idea, if you have been a decent customer they will give you a creidt limit increase.

YorkshireBoy

mikeopvc wrote: »

Yes there is a fee of 5% which is why I said £2,400 + £120 fee leaving 73p credit:D

Better not do that then, maybe £2,300 or even £2,200?

The max allowed is 95% of your available balance including the fee, so around 90% (of £2,500 = £2,250 plus the £112.50 fee) in your case.

Don't forget you already have a revolving balance, meaning there will be interest applied at your next statement date...so their 95% limit ensures you don't go overlimit at statement date.