quick advise?!

freaksaver

Hi fellow moneysavers :-)

I just need to check out a plan before I go ahead.

Scenario:
Brother has a loan 20%+ interest rate. Rang the company and it will cost £11,631 to repay. I am trying to get this on 0% for him and them manage this over the life of balance to help him as he is desperate.

Anyway. we have available
1 x virgin card £5400 available (5130 afer xfer fee)
1 x virgin card £2500 available (2375 after xfer fee)
1 x barclaycard £4350 available (4224 after xfer fee)

This gives £11,728 ccard availability (after xfer fees have been been deducted from the ccard limites) so ther is enough for the plan.

The plan is this.

step 1 - Xfer virgin £5130 as money xfer in to bank
step 2 - xfer virgin £2375 as money xfer into bank
step 3 - balance xfer from virgin to barclaycard £4224 (this will leave a balance on my virgin c card of £906 (5130 - 4224 )
step 4 - xfer £4224 from virgin as money xfer into bank.

This will leave me with all cards maxed out. An alternative was going to be to balance xfer from barclays to virgin which will put the virgin card into credit by £4000 ish and then xfer this credit balance PLUS the credit limit available from Virgin into my bank account.

Can anyone see any flaws in this plan (obviously this will all need doing within the first 60 days)
Is it possible to be in credit with Virgin my this amount?
Which way round appears to be the best?

Any opinions would be hugely appreciated before I get things going.

Thanks in advance

Freaksaver

CLAPTON

putting CC is credit is usually against the rules and the transfer is likely to be reversed

are all these cards 0% BT cards?

if so what happens at the end of the promotion period?

if these are not all in his name, willyou be prepared to repay the debt if for whatever reason he can't?

freaksaver

Hi Clapton

Yess all balance xfers sadly for 12 mths only as existing cards. Am also considering a life of balance option.

No no all in his name, one in mum and one in mine. Risky I know but his money situation is such that his house may be a risk if he doesnt reduce his outgoings.

What the ultimate is, is to put in onto his mortgage (really bad in terms of money saving I know but it will then all be in his name and his monthly payments will be greatly reduced!!

His mortgage company want £100 to value the property to see if there is enough equity in it to offer the increase, I am considering asking an estate agent to value it as if going to sell just to see if the LTV is where it needs to be but mortgage companies sometimes value properties lower than estate agents dont they??

Plan is in 9-10 mths time we shop around for some more deals and hope that we get an offer! His card is the lowest credit limit as well!!! but we are going to call to see if this can be increased but it would have to be with a longer 0% as it will go on his credit score so needs to be worth it.

freaksaver

Clapton, who will reverse the transaction? Barc or Virg

If xfering from B to V so that the debt is with Barcl how will they know the balance on my v card to see that it is in credit??

If V, I have called them and they said they would but it is not promoted! Risky I know but it has to be worth a try!

Also need to check to see if the loan company will accept part payment and perhaps do it in stages!

CLAPTON

freaksaver wrote: »

Clapton, who will reverse the transaction? Barc or Virg

If xfering from B to V so that the debt is with Barcl how will they know the balance on my v card to see that it is in credit??

If V, I have called them and they said they would but it is not promoted! Risky I know but it has to be worth a try!

Also need to check to see if the loan company will accept part payment and perhaps do it in stages!

the positive balance issue would be with Virgin.

what sort of loan ; personal/HP
when was it taken out?
who is it with?

but most loans allow over payments but they don't necessarily reduce the monthly payments but reduce the period ... you will need to check the T&Cs

but I think it very unwise to involve mum unless she can afford to make the payments herself if he defaults

ic

freaksaver wrote: »

No no all in his name, one in mum and one in mine. Risky I know but his money situation is such that his house may be a risk if he doesnt reduce his outgoings.

Just remember it becomes your debt when you transfer it. He'll owe nothing (and perhaps as unthinkable as it might be) could just walk away at that point.

Stranger things have happened.

Also be sure to check for any early repayment charges or administration fees involved in clearing the loan. Also be sure that the loan isn't flat rate (i.e. the interest was added at the start, so there's no avoiding paying it off now - so no benefit in clearing the loan early).

CLAPTON

ic wrote: »

Just remember it becomes your debt when you transfer it. He'll owe nothing (and perhaps as unthinkable as it might be) could just walk away at that point.

Stranger things have happened.

Also be sure to check for any early repayment charges or administration fees involved in clearing the loan. Also be sure that the loan isn't flat rate (i.e. the interest was added at the start, so there's no avoiding paying it off now - so no benefit in clearing the loan early).

'flat rate' doesn't mean that the interest is added at the start

bouncydog1

I think before you do anything your brother needs to get over to the debt free board himself, post up a statement of affairs and seek help. Not slating your offer of help, but please make sure he explores the options himself. I am speaking from experience by the way. A family member needed help 20 years ago and nothing has changed.

Your offer is good but if your brother is old enough to have a mortgage he needs to explore the options not expect family to bail him out. You cannot afford to as you will have to borrow the money. If you had it freely available that wouldbe a different story.

triple_choc_chip

I don't think money transfers are allowed up to the total available credit on the card - it's usually detailed on the statements. Enquire first because you may not have enough money transfer funds available to clear the loan.