Debt Consolidation Advice?

Gareth83

Happy New Year all,

Just after a bit of advice if I may? I have a few credit card debts but also luckily to have some cash set aside to hopefully pay them off when the 0% is due to expire. I'm just wondering what would you do if you had the following:

Mortgage
£90,000 @ 2.09% fixed till 2017

Credit Cards
Card A, £2500 @ 0% until April 2016
Card B, £2000 @ 0% until September 2016
Card C, £7750 @ 0% until February 2017
Card D, £2000 @ 0% until February 2017

Would you hurry to pay off the cards or just keep doing 0% balance transfers when each offer expires and keep paying the minimum payments? Or would I be better off paying money off my mortgage and just consolidating everything?

Thanks

sourcrates

You need to look at why you have accumulated 14k of credit card debt, then adjust your lifestyle so you don't need to keep borrowing money you cannot afford to pay back !!!

Gareth83

Please read the initial post, i have the money set aside in my current account to pay them off in full.

But it's just easy to keep transferring them (getting a cheap loan basically).

If I paid them all off now then I have zero money left in my bank ..... What is the point in that?

January2015

I would chuck as much as the credit cards as possible to ensure that when then 0% on each card ends, the balance is as low as possible. For example, pay minimum payments to Cards B, C, and D and pay as much as possible to Card A now. Try and get a balance transfer in March to move Card A remaining balance. As soon as Card A is at zero balance - close the account so you are not tempted to use it again.

The move maximum payments to Card B....try for balance transfer in August to move Card B, close Card B, and so on.

Problem is you may run out of balance transfer options.

Definitiely do not considering consolidation. From personal experience it is the worst thing you can do.

Put the cards away now (or cut them up) and do not use them again.

That's what I would do anyway.

Edit: just read your post saying you have the money in the bank to cover these card debts. In that case you are probably asking the question on the wrong forum - you need the credit card stoozing forum (or whatever it is called)

Gareth83

So just leave them all open keep paying minimum repayment and pay each off in full when the 0% expires?

There's no rush to pay more than the minimum on either really? I was just wondering if it would be better to pay the cash off my mortgage now or something else...

sourcrates

Gareth83 wrote: »

Please read the initial post, i have the money set aside in my current account to pay them off in full.

Then I would do so, what's easy, is not always what's best.

Those savings are technically not yours, as you have debt !!!

Pay them off, start saving again, but this time debt free !!!!

Gareth83

I haven't said they are savings? I have said I have the money set-aside.....

But I've been using the 'pot' to make a bit of money through matched betting, and other means.

HappyMJ

Gareth83 wrote: »

I haven't said they are savings? I have said I have the money set-aside.....

But I've been using the 'pot' to make a bit of money through matched betting, and other means.

Then keep it.

You aren't really in debt.

You are stoozing as you have the funds to pay the debt off. You are like me and earning more in interest than you are paying out in balance transfer fees so keep on doing that.

January2015

If you pay the cash off the mortgage they do become debts in the real sense of the word as you will have no available cash to service them in full with.

Pay the credit cards off as and when 0% ends and close the accounts so that you don't use them again.

Again - just what I would do.

Sanctioned_Parts_List

The wording in the original post implied that this wasn't deliberate stoozing, so much as debt run up through spending, flipped to 0%, with the addition of cash backing as a happy accident. Apologies if I'm wrong

I'd ask, if this debt was accrued through spending, is your spending really under control now, or are you likely to dip into the set-aside money whenever there's an unexpected extra cost to pay? And are you increasing that set-aside pot to account for stoozing fees (2-3% per card)? Do you have a buffer against having to dip into the principal borrowing? Did you take out the debt with a view to stoozing, but didn't consider the settlement plan at the start?

If the answer to any of those is no, then best off repaying the debt now, having a think, building up a buffer (a year of those £350/month minimum card repayments would do nicely), then having another go on a more solid footing.

getmore4less

Gareth83 wrote: »

Please read the initial post, i have the money set aside in my current account to pay them off in full.

But it's just easy to keep transferring them (getting a cheap loan basically).

If I paid them all off now then I have zero money left in my bank ..... What is the point in that?

Cheap but not free, there will be BT fees every time they move and with mion payments the APR will be a bit higher.

If you are also juggling your savings through accounts creating enough interest to cover the BT and have a bit left over then it may be worth the effort.

Do the numbers how much proffit are you making from the cash pot after the debt costs, and how much time do you spend juggling money, what's your hourly rate?

Thing is you don't need a cheap loan unless you have plans to spend on something.
How much spare cash are you generating each month? if none then you are in limbo if plenty you can transition to get rid of the debt unless it is earning.

Whats the mortgage go up to at the end of the fix? that may influence things a bit.