New Member Question re Credit Cards

WillyWonkersMummy

Hello. I am new to this website and forum. 1st post in fact. I have been looking at the site to help me make the best decision about what I should do concerning my current credit cards. I currently have 2 active cards with Santander. A 123 cash-back card which I have nearly maxed out. The credit limit currently set at £3,300 and also the Santander Balance transfer card with a limit of £4,020. I have been paying off each by DD every month but the interest is now high on the 123 card and I am looking for the best option to get them cleared.

I was not sure if a balance transfer for the cards was the way to go or should I be looking at a loan to clear both off in one swoop? I know that you are not always guaranteed to get the whole amount owed transferred over to a new card.

Any help would be greatly appreciated thank you.

grumbler

WillyWonkersMummy wrote: »

...
I was not sure if a balance transfer for the cards was the way to go or should I be looking at a loan to clear both off in one swoop?

This depends on your circumstances and plans/abilities to pay the debt off.
Balance transfer(s) are cheaper, but getting a loan can be easier.
The cheapest loans are ~3%, and so are one-off BT fees.
Re 'one swap', it's not necessary. Theoretically you can transfer balances to several 0% cards or combine a 0% card with a loan.

See MSE article: Personal Loans

• Credit cards can be cheaper than loans
  • When is a card best?
  • When is a loan best?

WillyWonkersMummy

Thank you for your advice

chattychappy

Beware of "pyscho" factors too. It's good to clear a CC via a loan or a balance transfer deal. But some people find it too tempting to have a freshly cleared CC in their wallet - so then spend even more, pushing up the overall debt. £1 on interest is not much different from £1 on unncessary spend. It's still a lost £1.

If you are struggling with debt generally, or think that the above could apply to you, then come back for more advice. (There is a "debt free wannabe" section.)

WillyWonkersMummy

Hi.. My main goal is to clear the debts on the card so I can use it (sparingly) as and when needed and pay it off straight away... Due to circs I have had to use the credit cards to pay for big purchases that I could not pay for from my current account... And due to the length of time built up and also adding monthly payments to the 123 card especially it got to an amount that was near to the credit limit. I have shifted all these monthly payments and Paypal payments to my bank account which is more affordable and controlled. I know have nothing being paid off on my credit card. and will not use it again until the amount is paid off.

I only really want to use my 123 card for purchasing secure transactions and paying it off within the month - thats my goal just want the most cost effective way to get the amounts paid off so I can get back on track.

chattychappy

You can try the eligibility checker at https://www.moneysavingexpert.com/eligibility/credit-cards/ to see what cards you might qualify for... good luck!

WillyWonkersMummy

Just to say that I used the eligibility checker and it lead me to a great balance transfer card which I now have and have received a credit limit that covers both the cards and more! Thank you for your advice.. I am really grateful for this website.. Invaluable tool xx