Credit Card Advice Please

Cluckers21

Hi there!

I currently owe £1500 on a Natwest credit card with a £3050 credit limit. - currently paying between £150-£250 a month.

I owe £3700 on a £5350 loan - pay £150 a month however this is paid for by my parents as they purchased a car from me and these are the repayments.

I also have a pcp deal on a VW polo. I pay £235 a month off and have currently paid 13 payments off with another 23 to go until i reach the end when i have the option to pay the £5550 'balloon' payment.

This is the only debt i have except a standard student loan as i live with my parents. I earn £19,000 a year and have a good credit rating as ive never missed a payment on anything and always pay above the minimum.

Im paying interest on my credit card and would rather use that to pay it off as im trying to save for a flat also (only have £600 savings which are half my partners).

What is the likelihood of me being accepted for a 0% balance transfer credit card? have i reached my ratio limit as im unsure if the car counts towards it with that being a secured loan.

Im easily paying what i am at the moment but just trying to find ways of paying it off quicker.

Any advice is appreciated i dont really use my credit card accept for purchases where im secured like holidays or my car deposit etc.

Thanks again!!

Tixy

You could try the eligibility calculator for an idea of your chance of being accepted - http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#eligibility

You have quite a bit of debt compared to your income, but you don't need a particularly high limit on a new card so even if accepted with only a low limit it would probably be sufficient for what you want.

That said do check out that it will be worthwhile financially and compare how much interest you'd pay on the existing card compared to a fee on a new card based on your planned repayments and current interest rate.

Mr_Goodkat

There is a chance that you would get accepted for a 0% card, try the eligibility checkers.


Your overall debt is quite high for your income and age especially as your £3700 debt / £150 per month payment will be included in any assessments despite your parents having purchasing the car from you and meeting the repayments.


Shifting the card debt would be a good thing but your biggest problem is the PCP and wanting to also save for a flat. Paying £235 a month on a £19k salary is a lot especially as you are still left with a balloon payment of £5.5k.


Once you have added PCP payment, fuel and insurance you are eating into a big percentage of your take home pay.


I would try and shift the card debt to 0%, cut back on all non essential spending to save money and see if you can boost your income in anyway e.g part time job.


Good luck

onerickylambert

Once you start looking at mortgages you'll see how adversely having credit card debt affects them. I earn £32k/year and my bank told me to pee off until I'd paid them off, when I applied for a credit card in Nov, and that was around £5k and just going for a £100k mortgage.

Clear the cards, using your savings then start saving and use that planned balloon payment for a flat deposit instead, house prices usually go up, Polo prices don't. Mortgage companies now want to see everything you've spent up to six months before you apply so get in good habits now and be prepared to justify every transaction on your bank account. I know it's harsh but it's the new reality if you really want a flat.