Clearing down CC debt, advice

tonymcp86

Hi all

So my current situation is as follows:
Barclaycard - 9k, 22.9%
Cap 1 - 1.5k, 18.9%
MBNA - 3k, 0% for another 16mths.

I have this morning been approved for a 2nd mbna with a limit of 6k, I applied on the basis that it has a MT offer of 0% for 20mths.

My thinking is that I will MT to my bank the full limit and then pay off large part of my barclaycard to reduce my interest costs, is my thinking right?

I've seen people call barclaycard to reduce interest rate, is it worth me doing this beforehand to try and reduce this?
Would capital one be open to the same conversation?

Thanks in advance

PeacefulWaters

There's no harm in asking, is there?

Once you've made your call paying down highest rate first is the way to go.

Good luck.

Dobbibill

I agree with PW, have a conversation with the companies first.

Be mindful that a MT is not 'clearing down the debt' but merely moving it. Cut back on everything you can and throw every spare penny at the card with the highest APR first while maintaining the minimum on the others.

Also please address the reason you have the debt in the first place otherwise it will only be a matter of time before it repeats itself.

All the best

YorkshireBoy

tonymcp86 wrote: »

My thinking is that I will MT to my bank the full limit and then pay off large part of my barclaycard to reduce my interest costs, is my thinking right?

You won't get the "full limit", only 95% of it.

Also, check the MT fee...it may be more than the BT fee. Even if it was the same you will have a delay in paying off Barclaycard, and incur unnecessary interest (albeit for 1 or 2 days...but still a wasted £6.50 !!), being as there are two payments required. If the fees are the same you should BT, rather than MT.

tonymcp86

The Bt offered is only 10months though, so double the time in the MT.

[Deleted User]

Dobbibill wrote: »

Also please address the reason you have the debt in the first place otherwise it will only be a matter of time before it repeats itself.

I agree.

I suggest starting a thread on the Debt-Free Wanabee board, and posting an SOA.

The more you can reduce your day to day spending, the quicker you can be debt free, and the more interest you will avoid paying.