Money Transfers

Man_in_a_Suitcase

grumbler wrote: »

But you can leave part of the money in your current/savings account to cover your loan (and CC card if needed) repayments for the next 5 months, cannot you?

No. The point is they only gave me a credit limit of £2000, but I needed £2500 to clear the loan. If I clear all but £500 of the loan with it, how can there also be part of the money left to keep in my account?

grumbler

• You are making payments for your loan, so you already have and will have the money for future payments.
• You get ~£1800 to your current account (90% of the credit limit).
• You keep a small part for, say, 5 months' payments to the credit card- about 5*£2000*1%=£100.
• You use £1700 to repay the loan

As simple as that. It's not a rocket science.

Man_in_a_Suitcase

grumbler wrote: »

• You are making payments for your loan, so you already have and will have the money for future payments.
• You get ~£1800 to your current account (90% of the credit limit).
• You keep a small part for, say, 5 months' payments to the credit card- about 5*£2000*1%=£100.
• You use £1700 to repay the loan

As simple as that. It's not a rocket science.

Keeping £100 back isn't going to cover 5 months repayments on the credit card. I would need to pay that EACH month to the credit card to clear it within the 0% period. I don't want to be in a position where I have to move the debt again and incur another fee at the end of the 0% offer. In any case if I'm only clearing £1700 of the £2500 loan balance, that would mean I would still have EIGHT more repayments to make on the loan. That's eight months where I'm paying the credit card + the loan. The amount of interest I was saving is only worth the messing about if I was clearing the loan in full and just making repayments for the money transfer.

YorkshireBoy

steve1912 wrote: »

Keeping £100 back isn't going to cover 5 months repayments on the credit card.

The minimum payment on a Halifax card is 1% plus interest*, so that's £18 a month during the 0% period...a total of £90 (of the £100 you retained) over 5 months.


* Unless your Halifax T&Cs are different to those currently on their website, and those I've I'd for many years...unlikely?

grumbler

steve1912 wrote: »

...In any case if I'm only clearing £1700 of the £2500 loan balance, that would mean I would still have EIGHT more repayments to make on the loan.

OK, if extra £18 p.m. is really a problem for you, just keep £18*8=£144 or £18*9=£162 then.
Do this extra ~£50 really make any difference?

Do yourself this primary school calculations instead of this pointless arguing. And don't forget that you'll pay much smaller interest on ~£900 balance than on £2500 (both dropping every month), so it can take less than 8 months.

RDG

So your loan repayments are approx £100 per month then.

£2500 divided by 15 months is £166 per month to pay off in the 0% period that Halifax have offered. So even with the Halifax card your repayments would be higher than your current loan payments.

What was the MBNA deal you got? As this maybe your best option as you have the card already and as pointed out above you will still save as the interest will be significantly reduced.

JimmyTheWig

steve1912 wrote: »

Keeping £100 back isn't going to cover 5 months repayments on the credit card. I would need to pay that EACH month to the credit card to clear it within the 0% period. I don't want to be in a position where I have to move the debt again and incur another fee at the end of the 0% offer. In any case if I'm only clearing £1700 of the £2500 loan balance, that would mean I would still have EIGHT more repayments to make on the loan. That's eight months where I'm paying the credit card + the loan.

I had to read this a few times to work out what you meant.
Yes, if you want to pay the card off in full in the appropriate time then you will need to pay, on average, £100 a month off the card.
But with a credit card debt you don't have to pay the same amount each month.

So for the first 7 or 8 months you can pay the minimum on the card whilst paying the repayments on the loan.
Then once the loan is repaid you can up your payments on the credit card.
[Or carry on paying the minimum and put what you can into a savings account to pay off the card in full before the 0% ends. That way you'll earn interest on the money in savings. Only do this if you are organised and disciplined.]

Try, as you say, to have the balance of the credit card paid off in full before the 0% runs out. But if you go over by a month (say) that will only mean one month's interest on the balance at the time (which will be low).

The amount of interest I was saving is only worth the messing about if I was clearing the loan in full and just making repayments for the money transfer.

Obviously it would have been better if you had been given the limit you wanted. But you haven't. Surely shifting two thirds of the loan to 0% is better than paying interest on the whole lot, isn't it?

Man_in_a_Suitcase

grumbler wrote: »

OK, if extra £18 p.m. is really a problem for you, just keep £18*8=£144 or £18*9=£162 then.
Do this extra ~£50 really make any difference?

Do yourself this primary school calculations instead of this pointless arguing. And don't forget that you'll pay much smaller interest on ~£900 balance than on £2500 (both dropping every month), so it can take less than 8 months.

I don't know why there's an attitude, because there certainly wasn't one from me. You are talking minimum payments to the credit card for the remaining lifespan of the loan and I'm just saying that isn't going to work in my situation. I'd get too far behind over the 7 or 8 months and would have no chance of paying the extra to catch up. The saving I make by clearing the whole loan and then paying the money transfer off during the 0% offer is worth the messing about. If neither of those things are possible, it isn't.

grumbler

steve1912 wrote: »

I don't know why there's an attitude, because there certainly wasn't one from me.

You were promptly dismissing reasonable suggestions without even making an effort to think them over.

You are talking minimum payments to the credit card for the remaining lifespan of the loan and I'm just saying that isn't going to work in my situation. I'd get too far behind over the 7 or 8 months and would have no chance of paying the extra to catch up.

If you have money to pay the loan off over 7/8 months, than you need even less money in total to pay the card and the reduced loan off over the same period.

Is it not obvious that with the same monthly payments it will take much less time to pay of £900 than it would have taken to pay off £2500? After finishing with the loan you pay the CC card off fast, but as it's at 0% you can extend this for a longer time if you wish.

The saving I make by clearing the whole loan and then paying the money transfer off during the 0% offer is worth the messing about. If neither of those things are possible, it isn't.

I don't understand what you want to say.

Give me the exact figures for your loan (balance, APR, monthly payments, BT fees) and I'll calculate for you how much you could have saved by using a 0% card with £2K limit. I assume that there is no any early repayment penalties for your loan.

Man_in_a_Suitcase

grumbler wrote: »

You were promptly dismissing reasonable suggestions without even making an effort to think them over.

How do you know that I didn't think it over?

I just didn't agree with what you were saying and the feeling's obviously mutual.