Help with BT as ive never done it before ?

mumofthetwins

Hi Guys
I would really appreciate some advice ...

I have been trying to pay off my OD and CCs i have cleared the OD and one CC the other is a barclay card with about £8000 on it. My Virgin card (the one i cleared) has offered an 0% balance transfer, i have a limit of £3000 and could possibly have a go at increaseing ?
i was thinking i would transfere the £3000 from BC to the virgin card and pay a monthly amount which would clear it within the year ...
questions are ..
is this my best option ?
Should i try for a higher credit limit for the BT ?
Do i just complete the BT online ?

any help would be great guys
Thanks
Lisa

[Deleted User]

Transfer as much as you can (you could try asking for a limit increase but it's probably unlikely).

Then make minimum payments plus £1 to the 0% balance, and pay as much as you can to the remaining debt which is incurring interest.

mumofthetwins

Thanks i never thought of that was going to just divide the £3000/12 so £250ish a month and keep paying what i pay at the minute to BC which is £210/month.
I can afford to pay £500/month to cover this debt ... sometimes a little more but at least £500/month.

thebritishbloke

As ZX81 has said, but make sure that you're paying £1 more than the minimum payment on the Virgin balance, otherwise you'll get a minimum payment marker on your credit report, which doesn't look good to lenders.

msallen

Although as others have said, it makes sense to make the over-payments to the BC as it will still be charging interest, this is only for the short term - you should plan to increase the payments to the Virgin card as the 0% period comes to an end, as you don't want to be left with anything owing on it at that stage when it will probably revert to high (cash advance) APR.

[Deleted User]

It won't revert to cash rate, but to purchases.

LuSiVe

You probably won't be able to balance transfer right up to the limit. Usually only up to 90-95%.

plunt

i have a lloyds credit card which im currently using my 0% purchase rate (for 13 months) . If im only paying the minimum repayment will that flag on the credit card. or were you just refering to what Virgin does?

mumofthetwins

Well I have BTd £2800 over and upped my BC payment to £430/month ... hopefully this time next year it will be looking alot better !!
my family don't know about the CC or OD but I'm managing pretty well ... they just take the mick about me being frugal


Once the BC is clear then its time to hot the morgage (luckily its relatively small)


Lisa

SuperAllyB

plunt wrote: »

i have a lloyds credit card which im currently using my 0% purchase rate (for 13 months) . If im only paying the minimum repayment will that flag on the credit card. or were you just refering to what Virgin does?

Many suggest the "plus £1" to avoid the minimum payment marker but i have personally only ever paid the minimum on any cards with promotional balances and never had a problem getting new deals.

mumofthetwins

thanks for the advice guys just been online to check balances etc and have another question (sorry)


so heres what I have ..


£2700 on Virgin paying min +£1
£6000 on BC paying £430 + any extra I can afford ..


but ..


when I have checked my BC account they have an option of BT for 6.9% for life .. would it be worth me transferring over the £2700 back to BC to get the lower interest then transfer it back to Virgin for the 0% again ... (gotta complete virgin before 30/11)


do you think this would be worth it or possible ?


sorry guys im just really trying to sort these finances out ... any advice would be great


Lisa