Juggling 3 cards :(

Bat-n-Ball

Hello,

This is my first post so hello to you all

I won’t hide the fact I’m terrible with numbers hence me coming here in the hope some kind soul could help me untangle this muddle!

A couple of years ago, I was close to clearing off all my debts (other than my mortgage). Then, my last 2 employers went into administration, subsequent unemployment and dead-end jobs resulted in the accumulation of around £9,000, spread over three credit cards. What would be the best way I could manage this debt?

The details of my cards and any current offers are below.

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1 - Barclaycard (Visa)
Limit: £7,000
Balance : £3,456
Available: £3,543

The entire balance on this card comprises of:
£3,456 0% balance transfer. Offer expires 07/12/16.
Monthly interest rate currently 1.43%

They can currently offer me:
0.57% interest on balance transfers.
Duration - until payed off.
Transfer max £2,843.
Fee 2.9%

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2 - Tesco Clubcard (MasterCard)
Limit: £6,000
Balance: £2,324
Available: £3,676

The balance on this card comprises of:
£500 0% balance transfer. Offer expires 01/06/17.
£1,824 various purchases and cash advances. Monthly interest rate currently 2.06%

They can currently offer me:
0% on balance transfers.
Duration - 12 months.
Transfer max £3492.2
Fee: 2.99%

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3 - Halifax (MasterCard)
Limit: £8,200
Balance: £3,464
Available: £4,735

The balance of this card comprises of:
£1,497 0% balance transfer. Offer expires 8th march 17.
£1,967 retail purchases. Monthly interest rate currently 1.81%

They can currently offer me:
0% on balance transfers (and cash transfers).
Duration - 24 months.
Transfer max “up to your credit limit”
Fee: 3%

(My Current Account is also with the Halifax).

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Where possible, I am looking to simplify my card situation by getting rid of a card. Am I being naive in assuming I could transfer the entire balance of my Halifax card to the Tesco card. Then, transfer that balance back to the Halifax and ditch the Tesco card?

While I admit I am terrible with numbers, I do pay all my bills on time and my Noddle credit score is currently 5/5, or 648 out of 710.

I would be most grateful for people’s advice on how I could best manage this debt.

Best regards.

FluroFrancis

considering the fees that seems a bit of a dumb thing to do

redux

Well, it does look like you have opportunities to do some balance transfers back and forth to at least cover the amounts due to spending, and so avoid interest for the time being.

Whether there will still be new balance transfers available to churn all the current transfers as they expire, I can't guess. The BC one needs doing within a couple of months, so that should be OK.

I wouldn't close any cards for the moment, as you can be more flexible with the three.

Bat-n-Ball

Hi redux,

Many thanks for your reply

So, assuming I should keep all three cards, do you have any further advice on how I could best manage this debt? Remember, I'm no good with numbers and the whole thing can be a bit overwhelming for me sometimes, hence me asking for advice here.

My Halifax card seems to have the most clout with 24 months 0% interest on balance transfers (and money transfers).

The above offer ends 2nd November. Do you think it might be a good idea to just transfer the whole Barclaycard balance (which only has 2 months to go at 0%) and the £1,824 interest-incurring Tesco balance over to that Halifax card?

Thanks again for your help.

MallyGirl

definitely BT the £1,824 interest-incurring Tesco balance over to that Halifax card

Assuming they let you BT up to 90% (it won't be 'to the limit') you have 7380 to play with so:

£7380 - 3464 - 1824 - 54.72 = 2037 left to put to work on Halifax

BT 2037 from Barclaycard as it will expire soon. will cost £61 in fees
so now Halifax is full and most of it is at 0% (some till 8/3/17 and some for 2 years).

BC now has £5500 avail

I would then let things settle for a month as BC change their offers all the time. If they don't offer a 0% BT then I would BT at 0.57% pm the £1967 interest incurring amount from the Halifax. Still leaves £3500 headroom for BTing the £1497 from Halifax by 8/3/17 if there is a suitable offer at the time.

Pay the Tesco £500 before it expires 1/6/17 and then close it. They don't tend to offer good deals to existing customers - you need it to be closed for at least 6 months before you could apply again for another new customer offer if you needed one.

redux

Fairly similar to above, though slight timing differences

I'd be thinking of moving the Halifax 1967 of purchases to Barclaycard, and the Tesco 1824 of purchases to Halifax.

This leaves you with zero interest for the time being, and you still have enough space on Halifax to move the Barclaycard 3456 which expires in December.

And then enough room on Barclaycard to move the 1497 from Halifax in March.

Maybe use the Tesco for any current spending, and always pay this off in full, either from income, or with further transfers, depending on whether your situation is gradually improving or needs tiding over for a bit longer.

Bat-n-Ball

Hi MallyGirl & redux,

Many thanks for your great advice and time. There looks like a lot of good information there which will help me a lot.

Best regards.