Never ending !!!

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Hi everyone,

After any advice regarding my credit card debt situation....
I currently owe the following and I am not getting anywhere fast in paying it off just simply because of the huge interest.....


£1298.09 post office card interest £20 per month and min payment £40.


£4337.50 barclaycard interest £75 pm and min payment £130 pm 24.9 %apr


£1400 natwest interest £10 per month and min £30pm.


As you can see the interest is huge. I did have some good news in that I was recently accepted for a fluid card on a 0%balance transfer deal for 16 months....with a limit of £8400.


It seems obvious that I should transfer the lot and chop up the remainder cards but I am just scared that I won't get it all paid off when the interest deal finishes etc. my question is can I apply for say a barclaycard deal at themend of the fluid deal even though I have had one in the past etc.


What shall I do, transfer all the cards or just the main bulk of the barclaycard and keepnthenothers running......


Thanks in advance.

Comments

  • You-kip
    You-kip Posts: 499 Forumite
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    TBH your credit card debt is not that big and could be easily managed with 0% offers if your credit is up to scratch.
  • izools
    izools Posts: 7,513 Forumite
    Combo Breaker First Post
    edited 3 July 2013 at 8:59PM
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    You have enough available on Fluid to transfer all the debt to 0%. Great, do it.

    Once you have, cut up the fluid card.

    Once you have, close two of the other three cards. The one you have left, speak to the card issuer and arrange for them to set up a DD to pay the FULL balance each month.

    Also set up a DD to pay the MINIMUM on the FLUID card each month.

    Then set up a Standing Order to pay £1 to the FLUID card on the DUE DATE each month.

    The other card you left open - which now has a £0 balance - use it for maybe a newspaper or whatever once a month to ensure it doesn't look dormant on your credit file.

    The reasons for this:

    Closing two of the three cards: Making sure it doesn't appear you have too much credit available to you

    Leaving one open and paying it off in full each month with only small balances: Demonstrating you aren't desperate for credit and can survive without having your card(s) near their limits

    Paying the minimum +£1 to the FLUID card - it's interest free, so you want to make the most of this, but you don't want the "Minimum Payment" marker to appear beside the account on your credit file each month - paying an extra £1 each month shows you can handle more than the minimum.

    THEN:

    Put every other spare penny you have in a high interest savings account - e.g. a regular saver - instead of to the 0% card. When the 0% offer is coming to an end, empty your savings account into the card and apply for another 0% for whatever is debt left (if any). You'll have made interest on the savings, too, so you can put this towards the debt too - interest you wouldn't have made if you had been pouring every spare penny into clearing the FLUID card.

    As you've had another account open which you've been clearing in full each month alongside the FLUID card, your chances of being approved for another 0% offer are greatly increased.

    NB: Make sure you know the expiry date of your 0% offer on the FLUID card. Mark your calendar to apply for another 0% deal 30 days before the end.

    Also ensure you log on each month and check your statements to ensure everything is OK, without fail. DDs often take effect from the month AFTER you set them up so ensure to pay the first minimum payment manually unless the statement CLEARLY states it will be taken by DD on a given date.
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  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
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    Are you paying only the minimum each month? Could you pay more?
  • triple_choc_chip
    triple_choc_chip Posts: 1,131 Forumite
    First Anniversary Name Dropper First Post Xmas Saver!
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    If you transfer it all, paying the same monthly amount as you are now, in 16 months you will pay off £3200 instead of £1520 after interest. That's worth a transfer fee.

    If you close the cards when paid up, you can usually apply again as a new customer after 6 months.

    No one can forecast future decisions but in 16 months you will only have £3800 to transfer so if your credit worthiness stays the same it should be ok.
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  • Paul_the_Painter
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    What izools said, with the exception that if you feel you may lack the willpower to ignore an ever growing balance in your savings account, don't bother with it, and just pay every spare penny to the fluid card. You will lose out on a bit of interest but not too much (maybe £20)
    Personally I'd keep the Barclaycard, as it already has a nice large limit, and they keep offering me balance transfer deals as an existing customer, so you may not even have to apply for a new card when the 16 months is up, as Barclaycard may be offering you a deal (they are currently offering me 12 months with a 3% fee) probably worth applying for the best deal available at the time though with the Barclaycard as a back up.
    Unless it is damaged or discontinued - ignore any discount of over 25%
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