0% card, which balances to transfer?

Red-Squirrel_2

Hello all, advice and opinions would be much appreciated if you have the time for a short, boring essay!

After having no joy trying to get a consolidation loan at a decent rate, I've applied for and got a Barclaycard with 17months 0% on balance transfers. The credit limit is £5,500. I will also be receiving a lump sum of about £2000 in May that can also go toward my debts.

Debts are as follows:

Credit card with main bank - £7000 - 17%
2nd credit card with main bank - £450 - 20%
Natwest credit card - £2850 - 18.9%
Bank of Scotland card - £700 - 20%
Halifax card - £900 - 0% till the end of the year

Total - £11,900

So, my question is, what would you transfer to the new 0% card if you were me and what would you do with the 2K in May to have the best impact on the level of debt?

The cards with my main bank are 12 years and 5 years old respectively so I don't want to close those for credit file purposes, but I do want to try and reduce the number of accounts I have open. I've had the Natwest one about 3 years and the other two were opened last year.

I'm hoping to move house within the next year and the sale of mine should release enough equity to clear whatever's left of the debt by that point, but obviously I want to be in the best position I can for getting a mortgage!

Really grateful for any advice, don't want to just rush in and then potentially regret doing things the wrong way round.

Brightspark87

Hi

I would go for the highest interest first so 2nd credit card with main bank and Bank of Scotland card. Then Natwest credit card which should take you up to the limit?

FatVonD

The only scenario I can think of where paying down the highest interest card first wouldn't be a good idea is if you're hoping to be offered other 0% deals once the existing cards are cleared. IF that is the case just make sure you don't end up with deals from the same 'group' (e.g. MBNA) where you can't transfer across a balance from another card within the same group (it's not clear which your main bank is so difficult to say!)

Red-Squirrel_2

Sorry, main bank is co-op.

I'm not really thinking about further 0% cards though, the whole amount of debt should be cleared before the 17 months with Barclaycard is up, I just want to reduce the interest paid and get rid as quickly as possible. I accrued the debts while living on an absolute pittance temporarily, now I'm earning a living wage there's no need for much credit long term. I hate it sitting there muddying up my credit file and costing me money!

ellesbellesxxx

New CC
2nd credit card with main bank - £450 - 20%
Bank of Scotland card - £700 - 20%
Natwest credit card - £2850 - 18.9%
This makes 4000 so then I would transfer 1500 from
Credit card with main bank


Which leaves on your main credit card - £5500 - 17% could the 2000 come off here?This will then become your priority to pay, followed by...

Halifax card - £900 - 0% till the end of the year

This is how I would tackle it. HOwever, worth bearing in mind what FatVonD is saying - is it worth seeing if you can get another 0% card to put the remaining debt onto? You are going to still be paying a lot in interest - worth looking at the snowballing calculator xxx

Red-Squirrel_2

ellesbellesxxx wrote: »

is it worth seeing if you can get another 0% card to put the remaining debt onto? You are going to still be paying a lot in interest - worth looking at the snowballing calculator xxx

I've just done this, applied online and got a Tesco 0% for 12 months no fee, £2600 limit, so will put the bulk of the Natwest card onto that, then fill up the Barclaycard with as much as I can of the rest.

Feel stupid for not thinking to do that myself, but I've had a few searches recently with looking for a decent loan rate and the CC app, just assumed I wouldn't get anything else for 6 months till they'd dropped off!

Thanks, you've just saved me a substantial amount of interest.

NeverAgain2

Might be worth looking at offers on your current cards & shuffling the around. You'll pay fees but it's only a short term issue and then you'll have most of your debt at 0% long term.

Red-Squirrel_2

NeverAgain2 wrote: »

Might be worth looking at offers on your current cards & shuffling the around. You'll pay fees but it's only a short term issue and then you'll have most of your debt at 0% long term.

Sorry for being dim, but what do you mean by 'offers on current cards'?

jamesd

Card companies can make existing customer balance transfer offers. Say 0% for a year with 3% fee. These are normally mentioned in letters, online card services pages or in email to the card holder.

NatWest don't do 0% but they do offer around 6.9% with no fee for life of balance deals. If you have one of those it could eliminate most of your remaining potential interest bill and the lack of a fee makes it a good deal for even money that you will be paying off in a few months.