Best transfer/loan option for £7,000 Barclaycard debt

jaybee1982

Hi guys,

This is my situation at the moment and I'm really looking for some pointers having read the guide on this site.

DEBT £7,000 @ 24% APR on Barclaycard
CREDIT SCORE 3/5 (FROM NOODLE AS OF TODAY).

The guide on this site pretty much rules out a balance transfer at this amount, so am I right in saying I'd be best going for a loan. I want to clear within two years.

jaybee1982

Also I've just been clearing minimal payment of £160 every month for quite sometime whilst clearing me bank overdraft and a bit of income. I now have a few grand in my personal account.

I've been told numerous times to clear this off the credit asap but am concious of my job security so have never wanted to lose the money I have in my bank account.

Dowsett

jaybee1982 wrote: »

Also I've just been clearing minimal payment of £160 every month for quite sometime whilst clearing me bank overdraft and a bit of income. I now have a few grand in my personal account.

I've been told numerous times to clear this off the credit asap but am concious of my job security so have never wanted to lose the money I have in my bank account.

I may not be the best at giving debt advice as i have also asked a question myself just recently.

If you want to keep the cash, at least put it in a cash ISA. You can get access to this any time you want.

Can you not do a free check on credit cards to see if you might get a 0% deal?

jaybee1982

Dowsett wrote: »

I may not be the best at giving debt advice as i have also asked a question myself just recently.

If you want to keep the cash, at least put it in a cash ISA. You can get access to this any time you want.

Can you not do a free check on credit cards to see if you might get a 0% deal?

This is what I'm going to do I think. I want my debt paid off by the time I'm 34 so within two years. So far the best loan I can find is at 3.9% with Sainsburys with a very good chance of being accepted.

Shall I go for this or is there any better alternatives?

windup

a cash isa is not a solution if you're paying 24% on a debt, and have the cash to clear some or all of it, you may as well withdraw some of it, and burn it.

Mrtight

The chance you get that 3.9% are very slim they will give you a loan but the APR will be more. And WINDUP right you may as well be burning it! Pay it of the card.... Then worst case if you need it again you can always use your credit card NO POINT HAVEN A SAFTY NET when you paying 24% APR

Waffle_On

From what you've said, I have two questions, and maybe the answers will show a solution...


1. How much cash do you have in your account?
2. Could you get a balance transfer if the amount was lower?


Can you see where I'm going with this? Personally, on a debt at 24% I'd be inclined to throw everything at reducing it. Presumably you haven't missed any payments, so would be able to spend on the cc in an emergency?

FatVonD

The loan sounds a good rate if you can get it for that, you'd be paying 3% on a 0% credit card anyway. I managed to get one of the low rate loans from HSBC when I had a full-time job (although the rate was hiked up previously when I applied when I was freelance.)

Is the credit card debt all on one card? If not I'd be tempted to pay off the smaller with your savings and then that issuer will inevitably offer you a balance transfer deal when they see your account balance go down to zero then you can transfer the other across.

I agree with the others about using your savings and then hanging onto your card should you need it in an emergency.

Everyone else here will probably disagree with me but, if you have good reason to be worried about your job stability (redundancy rumours but nothing official maybe?) have you considered redundancy insurance? I took some out 2.5 months before I was made redundant so was still in my qualifying period and couldn't claim and was kicking myself for not doing it sooner. (I knew the lease was up on the building at least 7 months before and guessed they would relocate which they did!)