Should I pay off credit cards in this situation?

jamesd

I'm making around £5k a year from stoozing into P2P like Ablrate and MoneyThing. Raw interest rates around 12% are a good thing even when allowing a couple of percent for bad debt. Much faster to get invested at Ablrate via their secondary market, faster to sell and exit at MoneyThing, where you could expect an hour or so from offering to sell £5k to money in your bank account at the moment. But both plenty fast enough for your purpose. Subject to change, of course.

danlightbulb

jamesd wrote: »

I'm making around £15k a year from stoozing into P2P like Ablrate and MoneyThing. Raw interest rates around 12% are a good thing even when allowing a couple of percent for bad debt. Much faster to get invested at Ablrate via their secondary market, faster to sell and exit at MoneyThing, where you could expect an hour or so from offering to sell £5k to money in your bank account at the moment. But both plenty fast enough for your purpose. Subject to change, of course.

I assume you are talking over £100k of stoozed debt to get those kinds of returns? I will have a look into it but my initial gut feeling is I'm not overly keen on increasing my debt liabilities.

jimjames

Is it really 0%? All the offers I've seen come with a transfer fee of say 3% so you need to factor that in too.

danlightbulb

jimjames wrote: »

Is it really 0%? All the offers I've seen come with a transfer fee of say 3% so you need to factor that in too.

Yes in the past I have paid transfer fees. I think now there are some no fee, or low fee offers around but the duration is shorter.

redux

jimjames wrote: »

Is it really 0%? All the offers I've seen come with a transfer fee of say 3% so you need to factor that in too.

Some are nil fee. From a position of admittedly not expert knowledge, it seems to me that 0% balance transfers go to about 2 years with 0 transfer fee, about 40 or so months maximum at 0% has about 3 to 3.5% fee, and maybe not quite linear in between so 0.6% fee on 30 or 32 months might be interesting.

jamesd

danlightbulb wrote: »

I assume you are talking over £100k of stoozed debt to get those kinds of returns? I will have a look into it but my initial gut feeling is I'm not overly keen on increasing my debt liabilities.

Sorry, there was a typo there, from stoozing is around 5k, though overall you're right about the amount and around 15k is right for my total P2P income.