Paying off credit

Bouncybubbles

Hi

I have a barclaycard platinum visa with £4040 on it with a £4100 limit. Minimum payment £92. It's 0% on transfers for 36 months but only transferred £1450 onto it the rest was purchases (including wedding ring wedding stuff just being naughty etc) my question being how long will it take to pay this off? Based on just the minimum payment? Obv any extra spare cash I have will be going towards this but if it was purely minimum paid how long?

Thankyou all

PeacefulWaters

Are all the purchases at 0%? Is it really all 0% for 36 months?

If so, and assuming you can remain on 0% after your 36 months, and assuming you continue to pay £92 a month even as the minimum payment reduces below this, it will take 3 years and 8 months to clear. Paying £113 a month and never using the card again would clear an interest free debt in 36 months.

It's rarely a good idea to mix purchases with balance transfers though. My guess is it will take you longer to clear because you'll be paying a wedge of interest too.

See point 3 in the link below:
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?_ga=1.147856247.1116300417.1393518509

atolaas

£4040 divide by £92 = 44 months (I rounded up for convienence)...you might want to consider putting in a bit extra each month, otherwise you'll still have an outstanding balance after 36 months.

AJG384521

It's 0% on balance transfers, what is the interest on purchases?

Tixy

If it was all 0% and you just paid the minimum payment each month it would take over 14 years to repay the debt.

That is not based on you continuing to pay £92, but paying the reducing minimum payment each month.

It may not all be 0% at the moment, but even if it is now it won't be for the full 14 years.

As a comparison if all the debt was at 10% it would take over 20 years over paying minimum payments to clear the debt.

Bouncybubbles

Hi

Thankyou all for your replies! Interest on purchases is 14% I think, most of the balance is purchases as mentioned in first post really regret having the card now! Only wanted a limit big enough to clear other CC at 0% transfer which would have been £1500. However when app was approved gave me £4100 straight away! Should have reduced it in hindsight

Mr_Goodkat

It would be worth applying for another balance transfer card to take the purchase balance from the Barclaycard leaving the existing balance transfer in place.


If you can get accepted work out how much you need to pay over what is left of the 36 month interest free period on the £1,450 and set up a DD for that amount so that is cleared by the time the promotion rate expires.


If you can get the rest shifted on a long term balance transfer then again work out how much you need to pay each month to clear the balance in the timeframe and set up a DD for the fixed amount.


Do not use either credit card until the balances are clear, if you have no self control cut up the cards.


If you can have more self control then set up DD's for just over the minimum amount each month and put the rest of the required monthly payments into an interest paying account. At the end of the deals clear the balances in full and you will have made a few quid in the process.

Bouncybubbles

Hi

Thank you all for your replies! I have set a DD up for £125 PCM minimum is £92 so just over. I haven't applied for a balance transfer though as we are in the middle of moving and just had full mortgage offer so don't want to jeopardise that until we have got the keys. As soon as that's all sorted though it's definitely something I will look into. I also have a coop card limit £1500 with balance of £44 so will probably close that and open a new 0% transfer one following move :rotfl:

Justme123

Call them and tell the advisor that you aren't happy with the interest rate. You'll be transferred to the uk and if there is the option available they will reduce your rate. This could be to as low as 6.9% but they may not offer this immediately, if it available they won't refuse to drop it.

I have 5 friends and myself who have done this, 4 of us got 6.9% for 2 years on existing balances.