best way to use 0% BT?

Dowsett

Hi,

Just been accepted for the MBNA 32 months 0% card. Just wanted to ask what would be the best option to take to decrease my debt as fast as possible. I have never had a 0% card or BT card before.

I have 13k on my barclay card (6.58% APR) and my new MBNA will have 7.5k limit (when it arrives).

I was planning on just transferring around 3k and paying £100 a month so that it gets paid off before the 0% ends.

Now i have just thought about transferring more, around 7k and paying the minimum on the MBNA whilst paying off the barclay card as much as possible and then getting a new 0% BT card when my MBNA one runs out.

Anything that could block me getting a new 0% card in 2 1/2 years time? I used the precheck for the MBNA and i was 100% approved. Virgin money i was 70%. Hopefully my credit rating will be better by then.

I suppose if i couldnt get hold of another 0% card at the time i could always transfer it back to barclaycard at the lower rate of 6.58%...

Any thoughts? or better ways to do it?

TIA

MoneyMission2015

Put as much as possible on the 0% card so you will pay less interest. Then as you said, pay the minimum on the 0% card while paying the debt on your Barclaycard as quickly as possible to reduce the interest you're paying even more. Once the Barclaycard is paid off, you can carry on paying the 0% card off.


You might find that after a few months of overpaying your Barclaycard you might become eligible for another 0% balance transfer card which will enable you to move all debt over to 0%. When I started focusing on my debts last year I had a low probability of acceptance, so just worked hard overpaying on all of my debts then a few months in to that I checked my eligibility again and was accepted for 2 cards (Barclaycard and Halifax) on 0%. All of my debts are now on 0%

Dowsett

Thanks,

I know how to manage my credit, I.E i will be reducing the limit (carefully) once ive done the BT and paid more off the barclaycard.

However i was trying to suggest i may not be eligible for another 0% card. You cannot do a BT from the same provider, so my MBNA one - i wont be able to swap to another MBNA at 31 months.

Virgin may be an option. Halifax seem to have very strict criteria, even though ive banked with them for over 20 years and a mortgage for around 8.

Anyway, i will load as much on to the 0% and pay the minimum. Hopefully something will come along in 31 months lol.

Kendall80

There are numerous 0% offers around at present with low or even 0% transfer fees. Its feasible to keep switching your debt to another 0% card until all is paid off. Never needing to pay more than the minimum payment and never paying any interest. Of course this may not be the state of play when your card approaches the expiry date.

SLZ

Dowsett wrote: »

However i was trying to suggest i may not be eligible for another 0% card.

Unless you plan on not paying off the debt there should be no issue in 2 years time.