Balance transfer? 0% confused

Cycrow

do you have the credit card, or did you just apply for it and waiting to see if you got it ?

all things like food and such just put on the credit card for 6 months and make sure you pay of the minimum amount each month.

as you are using the credit card to buy these things, you wont be spending the money from your account, which you can then use to pay off the other debts. Once they are clear you can start paying of the credit card.

with 6months at 0% u'll get 6 months where you have to additional interest to pay.

just dont use the credit card to buy things you dont need otherwise it'll just get worse

zerog

if you manage to get a 0% purchases card, then if you happen to go shopping with a friend you can see if they will pay you in cash and you put it on your card. If you are lucky enough to have a friend like that then pay off the loans with the cash as soon as you get it.

fozmcfc

I do feel you will be extremely lucky to get a credit card, with payday loans and an overdraft constantly in use. If you go over your overdraft, then I think it's 100% you will not get one.

However, fingers crossed, if you get the Nationwide card, don't dismiss it, still use it for all your spending and bills etc, until you get the money together to get rid of the payday loans.

Paying the minimum to the card each month, will be a lot less than the interest you are paying on payday loans. Just make sure once you have paid the loans off, you stop using the card, keep paying the minimum at least.

Then it is a complete and utter money belt tightening situation. You need to adjust your spending, so you are at least staying in the overdraft limits and paying the minimum payment to the card each month.

MrPrinny

excellent news!
I got accepted for a M&S credit card.
whilst the limit is quite low £500, it has a 0% purchase rate for an astonishing 11 months.

Finally caught a break.
so to clarify, I am to make my food purchases using only the card and then pay the minimum amount per month on this.
I will then use the money I save towards paying back the payday loans.

once the payday loans are completely paid off I am to repay the money owed on the card before the 0% rate expires?

does this sound correct?

Roland_Sausage

Yes, pretty much. Even if you don't manage to pay it before it expires, the interest will be a lot less than that of the payday loans.

alwaystryyourbest

Don't over spend on the card, it will feel like you are not spending using a credit card, but you are.....
Think of it as not your money are ONLY spend on things you NEED.
Get that pay day loan paid off and DON'T ever get one again..
GOOD LUCK ..xx

fozmcfc

Good news, you've got the right idea.

As others have said, just spend on the card, making sure you remain under the limit otherwise the 0% period ends. Keep making the minimum repayments to the card, otherwise the 0% period ends.

With regards getting the money together for the payday loans, you could speed it up. Don't just buy your shopping, but you could try paying some monthly direct debit items such as a mobile phone bill with the card as well and ask them not to take that months direct debit. Also any friends who you can say I'll buy your shopping on my card and you give me the cash.

Once you have got the money for the payday loans, pay them off and obviously don't get them again.

Throughout though, you do need to change your spending habits as well, otherwise you'll end up with the card repayments and more payday loans.

MrPrinny

Want to say thank you for all who have responded. although I still owe a lot, I now feel in control of paying it back rather than struggling.

I have a few more questions if you guys don't mind.

I was also accepted for the Nationwide credit card and today received the agreement and on the sheet it mentions my credit limit would be £1800. does this mean when I get the card that is my limit or is this an estimate?

secondly the paperwork mentions something called "cash advance" with around 29% APR.
could someone explain to me a little more about these?
Because to me it sounds like I could just take the advance of what I owe on loans, pay them back instantly (saving me £120 a month in interest) and then have to pay a minimum payment of £25 on the cash advance a month freeing up £95 a month in excess.

I should note that the loan total is £450 and 29% APR on this seems a lot cheaper than £120 a month in interest without even reducing the loan.

lastly, might be a silly question but can I pay utility bills (electric/water) on this card?

cheer

[Deleted User]

MrPrinny wrote: »

I have a few more questions if you guys don't mind.

Go on then. What is is?

MrPrinny wrote: »

I was also accepted for the Nationwide credit card and today received the agreement and on the sheet it mentions my credit limit would be £1800. does this mean when I get the card that is my limit or is this an estimate?

If it's on your agreement, then that is your limit.

MrPrinny wrote: »

secondly the paperwork mentions something called "cash advance" with around 29% APR.
could someone explain to me a little more about these?
Because to me it sounds like I could just take the advance of what I owe on loans, pay them back instantly (saving me £120 a month in interest) and then have to pay a minimum payment of £25 on the cash advance a month freeing up £95 a month in excess.

Yes - you take cash through an ATM. In normal cirumstances, it's a extremely bad idea. You will pay a fee for the transaction, plus interest from day one, and normally at a higher rate. It can also negatively impact your credit file.

But compared to a PDL, it's a better option, but it needs to be your priority to pay back as it will then probably be your most expensive debt.

MrPrinny wrote: »

lastly, might be a silly question but can I pay utility bills (electric/water) on this card?

Sometimes. Sometimes not. You'll need to check with your supplier.

MrPrinny

Deleted_User wrote: »

Go on then. What is is?



If it's on your agreement, then that is your limit.



Yes - you take cash through an ATM. In normal cirumstances, it's a extremely bad idea. You will pay a fee for the transaction, plus interest from day one, and normally at a higher rate. It can also negatively impact your credit file.

But compared to a PDL, it's a better option, but it needs to be your priority to pay back as it will then probably be your most expensive debt.



Sometimes. Sometimes not. You'll need to check with your supplier.

excellent, thank you.

the cash fee is 2.5% (about £10) but at least I will then be able to clear the loan debt to a much lower interest rate thus speeding up the ability to pay it back.

2% a month on this will be a HUGE difference from £140 interest only