Balance Transfer Strategy

ojosef

Hello Everyone,

So for the past few months I've been applying, re-applying, appealing, getting old disputed late payments removed from my credit reports (with success).

I have now succeeded in getting a 0% card and increasing my overdraft.

Let me lay down my current debt situation.

CARD / BALANCE / LIMIT / INTEREST RATE (APR)

• Barclaycard Flexi-Rate*: £3,380 / £3,400 / 23.9%* (See note)
• NatWest Platinum: £1,699 / £2,500 / 14.9%
• CapitalOne Platinum 1: £799 / £1,000 / 0% Until 01/Jan/2015 then 34.9%
• Capital One Platinum 2: £0 / £1,000 / 0% Until 01/May/2015 then 34.9%
• Overdraft: £0 / £2,000 / 17.9%

Available credit:

• Natwest Platinum: £800
• Capital One 2: £900
• Overdraft: £2,000

So overall with the addition of the second Capital One Card (3% balance transfer fee) and the extension of my Overdraft and the available balance on the Natwest Platinum (0% BT Fee), I have some options. Also something to note is the way the BarclayCard Flexi-Rate works. I contacted them to ask the exact details, this was their response:

The highest interest charge on your Barclaycard Flexi-Rate account as of today is 23.90% per annum, however interest charge can vary in the following ways:

· Payments of 5% + result in a reduction to 12.9% p.a.

· Payments of 10% + result in a reduction to 9.9% p.a.

I trust this information is of assistance.

If this is correct paying a large lump sum on my Barclaycard could really help.

I would really appreciate hearing the advice from others on this forum about how best to go about moving this debt around to efficiently reduce my debt over the next 12-24 months.

Thank you!

grumbler

What was the point in posting "0% Until 01/Jan/2014" and "0% Until 01/May/2014" if both dates are well in the past?

ojosef

The point, no point, was a typo. Updated it now.

grumbler wrote: »

What was the point in posting "0% Until 01/Jan/2014" and "0% Until 01/May/2014" if both dates are well in the past?

grumbler

I assume that there are no fees for being overdrawn.

Then the first obvious step is to keep making 10%+ payments to Barclaycard and keep spending on it as it will be your cheapest debt.

Depending on your income, it's probably worth using a part of overdraft to pay to C1-1 when 0% ends in Jan.

Transferring ~£900 from Natwest to C1-2 can possibly save you some money, but this depends of the BT fees and your plans of repaying the debts. Do your maths. It's obvious that you have to concentrate on repaying the most expensive debt.

ojosef

Thanks. Yes that's right, no fees for being overdrawn just the interest on any balance overdrawn by more than £100 otherwise it's an arranged overdraft.

I do have another question, what do you think the chances are of Capital One giving me another BT offer on the C1-1 card after Jan even if at low interest (no 0%) because otherwise I may as well just shut down the C1-1 after Jan (once paid off, which should be doable). Do you think if I ask to close my account I could negotiate a new offer? Meaning I could then take more off of the Natwest or the Barclaycard? Do you or anyone reading this have any experience with renegotiating after clearing a balance within the promo period? Obviously they are making 0 money out of me, but I wonder if there is something they would offer to keep me?

Cheers,