Using Peter to help pay Paul?

Gythyn

Hi guys,

I really hope you can help me with this one and I'll try and keep this as simple as possible.

due so a serious of unfortunate financial events I have found myself with a creditcard bill of just over £2.5k. It has a very high apr. I am managing the minimum payments, plus an extra £250 per month, but obviously with a high interest this is not impacting as fast as I would like. I have a second card which is offering 0% on balance transfers for 12 months and in any case is about 10% lower apr than the first card. It's limit is only £250.

My questions are
1) is it feasible to transfer £250 of my larger balance to the smaller card, pay it in full, transfer £250 the next month and so on until the larger card is cleared (and obviously within the 12 months ofer period)?
(I have worked out that if I am keeping the minimum payments +£250 I should be able to manage this, plus with the larger card's total going down each month, the minimums and interest should go down, meaning I can carve a little extra off each month)

2) Do 0% transfers work for just one transfer or can you operate them in this way?

3) Or shall I just keep doing as I am - paying minimum + £250, whilst keeping other spending to a minimum and paying off any few extra quid a month that I have?

going round in circles a bit!

Thanks

YorkshireBoy

You will probably find that there's a 30/60/90 day window on the £250 limit card, meaning you won't have time to shift much.

Also, whether it's worth it will depend on the BT fee on the 0% card and the APR on the £2.5K card, ie you may pay a 3% fee to save only 2% in interest.

fart

I transferred mine to a 0% straight away. Use the 0% period to repay the debt and not the interest.