Balance transfer help please :)

Gilb501_2

Hi - if anyone can help me out i would appreciate it very much.

Got myself into a bit of debt that is becoming a bit much....got a few payday loans currently, about 3 that I need to pay off ASAP to avoid charges and extra interest.

What credit card do I need to pay off payday loans early and consolidate it all on to a card. Is that a balance transfer card? Or are they only for switching credit card debt? Could I get an intrest free purchase card and pay off with that?

Please help :beer:

bargainbetty

If you have recently had payday loans there is a very good chance you will not be offered a decent card deal.

Speak to your bank about an overdraft or talk to the PDLs about a repayment plan.

Gilb501_2

My bank won't let me have an overdraft at present.

The main issue is with one particular PDL company, Today I owe around £600 which I can pay off today, but they stagger payments over 6 months to a total off around £1200...so I need to get that paid off ASAP to save myself the extra £600.

fozmcfc

Payday loans look bad on your credit report, because they mean you are unable to live from month to month on your income.

That is why you probably won't be eligible for a decent credit card to enable you to do what you want.

However.....

The card you need is a super balance transfer card, they enable you to transfer money into a bank account and give you xx amount of months to pay it back without further interest, providing you pay the minimum payment required each month.

There is a fee usually around 4% on top of the amount transferred to the bank.

So for example you owe £3k to payday loans.

1/ You apply and get the super balance transfer card.

2/ You then ask them to transfer £3k of your cards limit to your bank account.

3/ You then pay off the payday loans.

4/ You then owe the credit card £3120 (3k + 4% fee).

5/ You then have xx amount of months to pay the £3120 back without interest providing you pay at least the minimum asked for towards the card, each time you get a monthly statement.

You cannot pay a payday loan with a credit card and you cannot transfer balances from payday loans to a credit card.

A list of most super balance transfer cards available can be found on www.stoozing.com . Most are issued by MBNA either directly or under another name, such as Virgin.

StuC75

Having PDL's will affect your ability to source the better credit cards - as evident with being unable to get the OD..

The APR on the PDL are probably that high that any Credit Card would be better than the arrangement you currently have..

Pay as much off the PDL as quick as you can - complete a SOA \ Plan out your budget and see how you can get back to living within your means..

Gilb501_2

Thanks for the reply.

I guess these cards are for people with very good credit scores then.

I will have to have another think and see what other options I have.

If anyone has any other things I could possibly do that would be great.

Gilb501_2

I have been matched to the AA rewards credit card by "Check my File"

Would I be able to pay off a loan with that card?

http://www.theaa.com/credit-card/rewards-channel-index.jsp?name=Affiliates&mc=ECO-UK-44444-11268

fozmcfc

Yes the AA card is backed by MBNA, you get 12 months at 0% and the fee is 4%.

If you get the card, then you can do what I said above.

Before you apply though, try this available on this site.

https://creditcards.moneysavingexpert.com/?biitm

It will perform a soft search on your credit report, but won't leave a mark, to say you have applied for credit. Too many applications for credit in a short time can make you look desperate.

The fluid card is also an MBNA card and is for those who don't have an excellent credit score. It also offers 22 months at 0% for super balance transfers.

One other thing if you still have money on the card when the 0% runs out, you don't have to pay the remaining balance all back straight away, you can continuing paying at least the minimum each month.

Good luck, if you go for it.

pqrdef

fozmcfc wrote: »

You cannot pay a payday loan with a credit card and you cannot transfer balances from payday loans to a credit card.

Not directly, but most cards allow you to take cash, for a fee of 3-4%, which isn't a big deal here. You can draw it from an ATM or have it transferred to your current account.

You'd then be paying interest at the card rate, which will be a whole lot better. Even an exorbitant 48% APR would be 4% a month which on £600 would be £24/month.

Having got the debt onto a card, you'd then be in the market for any 0% or low-rate BT card you might be able to get. A 0% card would generally cost you another 3-4% fee. An SBT card combines the two steps and charges only the one fee, which is handy when you owe £10,000, but not critical.

dalesrider

Can you not use a CC to pay the PDL direct?
Instead of transferring to a bank account.