Balance transfer??

kms26

I have a credit card via Vanquis, my limit, which i am at is £550 and apr is 39.9% i have a direct debit to pay the minimum payment every month which is around £50, but it never seems to go down, i know this is because of interest.
So my question is should i transfer my balance? Is it worth it? And where is the best place to sort it?

Many thanks

CLAPTON

on 550 at 39.9% the monthly interest will be about

550 x 39.9% /12 = 18.23 approximately per month

so if you are paying 50 off each month then it should be reducing by about 32 per month

so unless you are spending on it then there is something wrong.


the best thing to do is to clear the debt asap

but if that is not possible then doing a BT would be good if you are able to get a 0% BT card.

what do your credit files say ?
what is your income?

is not wasting money on interest worth it? only you can decide

kms26

Obviously we want to save money lol. It is definately not coming down at all and i don't use it. I have a poor credit rating and approx £18000 income per year.

I looked on uswitch at the balance transfer cards but it is just gibberish to me :-/ One says 0% for 28 months but transfer fee of £122? Does that sound about right?

CLAPTON

are you over the CC limit and being charged a fee each month?

why can't you pay more each month and clear the debt more quickly?

if you have a poor credit rating then it's unlikely you will get a 0% BT deal but no harm in trying.



which card are you thinking of as the figures don't seem right?

izools

You don't need a new card or a good credit rating to reduce the debt.

Don't spend on the card.

Pay more than the minimum each month - i.e. as much as you can possibly afford.

Simples

Sprint955

I think maybe there's a typo on the opening post, and that the CC balance is £5500 - which would explain why the minimum payments are around £50 per month, and cost to BT would be £122 (about 2 and a half percent give or take).

That's just my guess!

redpete

Sprint955 wrote: »

I think maybe there's a typo on the opening post, and that the CC balance is £5500 - which would explain why the minimum payments are around £50 per month, and cost to BT would be £122 (about 2 and a half percent give or take).

I reckon with £5500 balance and 39.9% interest the monthly interest charge would be about £183 - so I don't see that the monthly minimum payment would be as low as £50.

YorkshireBoy

The minimum payment (on a 39.9% APR Vanquis card) is calculated in one of two ways (according to the T&Cs), whichever is the highest of...

4.5% of the balance, so on £550 that's £24.75

Interest charged plus 1.5% of the balance, so that's (£550 x 34.1% / 12 = £15.63) + (£550 x 1.5% = £8.25) = £23.88

...ie £24.75, so not sure where the £50 comes from? Even if it's a static DD, this doesn't correspond with the OP's assertion that the balance isn't reducing.

I fear some inaccurate data has been supplied by the OP.