Help/advice on store cards/catalouge debt please

Gem_M90

Hi,
I've been looking into the best ways to clear my store card, catalouge debts. As I'm paying a large amount to them monthly but the interest is killing me.
Could someone tell me if I'm on the right track here?

Basically I have debts on both Very and Next (Both just over 1000 pounds each), I have a Capitalone platinum card with 1400 credit, and I've just been accepted for a Barclaycard with 4500 limit and 0% on balance transfers for 25 months.
So, my plan is, use the Capitalone card to pay Very, and balance transfer to Barclaycard, and then use it again to pay Next and do a 2nd balance transfer. Then pay the Barclaycard monthly to avoid Very's 44% interest.

Can someone tell me if this is the right thing to do?

Willing2Learn

Hi GemM90 and welcome to the forum

Do you have any other debts, such as a loan for example or other cards or council tax etc?

Gem_M90

Willing2Learn wrote: »

Hi GemM90 and welcome to the forum

Do you have any other debts, such as a loan for example or other cards?

Hi, Yes I also have a Tesco bank loan which I got to buy a car. I still have 3 years to pay on this.

Willing2Learn

Gem_M90 wrote: »

Basically I have debts on both Very and Next (Both just over 1000 pounds each), I have a Capitalone platinum card with 1400 credit, and I've just been accepted for a Barclaycard with 4500 limit and 0% on balance transfers for 25 months.
So, my plan is, use the Capitalone card to pay Very, and balance transfer to Barclaycard, and then use it again to pay Next and do a 2nd balance transfer. Then pay the Barclaycard monthly to avoid Very's 44% interest.

Can someone tell me if this is the right thing to do?

Yes, that is perfectly sensible. Then divide the total debt on your Barclaycard by 25 to calculate your monthly payments before the APR increases. Also, keep using your CapitalOne card for you budgeted monthly expenses, and then pay off the balance in full, every month, after the statement has been received (and before the due date).

Gem_M90 wrote: »

Hi, Yes I also have a Tesco bank loan which I got to buy a car. I still have 3 years to pay on this.

Ooh a car loan. Just wanted to say that if you think you are struggling at all with your current debt, then don't be shy to post up on the Debt Free Wannabe board

Gem_M90

Thank you so much Willing2Learn, that's great.
I've never done a balance transfer before so I just wanted to make sure I was doing the right thing before I go ahead and end up worse off.
I always make my payments and I have a decent credit rating, but I know I'm paying way more than I need to with the interest rates on these catalouges/store cards creeping up.
Thanks again.

[Deleted User]

Are you sure you have got the full 25 months?

Some people have applied with Barclays and when their letter has come through confirming application it's for a shorter period (i.e. 6 months)

Gem_M90

!!! wrote: »

Are you sure you have got the full 25 months?

Some people have applied with Barclays and when their letter has come through confirming application it's for a shorter period (i.e. 6 months)

I guess I'll have to wait until my letter has come through. When I applied online and it told me my application was successful it definitely said either 25 or 27 months at 0% on balance transfers. The purchase rate was for a shorter period. I'll read through when it comes in and make sure before I do anything with it. Thanks

Craig1981

if no debt on the capital one card, I personally would have done a 0% purchase card... pay them off direct with your new card, same terms, but will save on the balance transfer - less hassle as well

Gem_M90

It is a 0% Balance transfer and purchase card, but I'm sure the interest free period for purchases is less than the balance transfer period. I'll read all the details when the card and letter comes in and decide if it's worth just paying both of them as a purchase then. Thanks

maxximus75

If you got the card with the no balance transfer fee option then it doesnt matter either way

sonuenjoys

You can BT your store cards or cats at BT rate offered to you. You can log in online and check the offer before transferring the balances. Your card needs to be activated to check offers.