0% balance transfer credit card to pay debts

Pandaeyes201

Hi all, knew to this forum and just looking for some general advice and do’s and dont’s.

I owe money to a couple of “store credits” around £500 between 3 stores. Due to my earnings I’m struggling to pay large amounts off to each lender, so making minimum payments to each but obviously it’s not really cleaning it and I’m paying interest.

I’ve only just started looking to a 0% balance transfer credit card. So looking for every bit of advice I can get on it before I actually do it as I don’t want to end up worse off.

So, I think I’ll be able to afford to pay back around £30-£50 a month (possibly more if I can get more hours at work). So what am I looking for in terms of the balance card. Interest? Balance fee? Etc. And anything to look out for as I’ve never been in this position before.

Thank you

[Deleted User]

You normally can't BT from a store card, so will probably need a money transfer option.

However, if you're only making minimum payments on very small balances, you're unlikely to be accepted.

Visit the DFW boards for advice on cutting costs and repaying faster.

Pandaeyes201

It’s not actually store cards but it’s credit for stores. So Very, and next credit online. Not sure if that makes a difference? I just pay it online, albeit the minimum each month.

[Deleted User]

The same applies, whether BT or MT. You're struggling with a small debt and lenders will be wary of giving you further credit.

Try an eligibity checker but at some point, you'll need to tackle this the old fashioned way.

Pandaeyes201

Thank you, that’s actually really helpful!

Nasqueron

Look for a money transfer card from a "sub-prime" lender like MBNA

Even if you get only £500 limit you could still get about £450 into your account to pay off the accounts and then pay off the money transfer over a longer period 0% - make sure you close these store accounts however until you can manage your income

https://www.moneysavingexpert.com/credit-cards/money-transfers/

Dobbibill

Once you have found a suitable card/offer if possible - do remember to address the reason you have the debt in the first place. If you don't do that it may happen again

Pandaeyes201

Thank you everyone. Lesson truly learnt! I will be closing all accounts I have once it’s all paid for and just save for things I want in the future!

I’ve just been reading Martin Lewis’ article on what I would need and it says you can balance transfer from store cards? I’ve had a look at some credit cards that I would be accepted for but the 0% is only 6 months and the APR is so high! I’m really struggling to know what’s best as that article says you can balance transfer from store cards.

So my debts are - Very account which I think we all know how that works. And I’ve got £200 there.
Next directory (they have just sent me a card to use in store but I use next pay online). Currently I have £334 there but I have made returns which will appear on next months statment. So what do I actually do?!

I thought about using a credit card to pay for the debt as then I’m clearing a higher amount in 1 go rather than paying minimum amounts on both. But as I’ve said the interest is high on them too.

[Deleted User]

As I say - you can't transfer on most store cards, which is why a money transfer may the only option.

Pandaeyes201

I’ve just done an eligibility check and I wouldn’t be accepted for a MT

Dobbibill

It appears both Very & Next accept Credit Card payments so a Credit Card with a 0% purchases offer will be suitable.



https://help.next.co.uk/Section.aspx?ItemId=10381


https://www.very.co.uk/help/en/online-help-system.page


Try the eligibility checker for a purchases card with a promo offer - you may find it's a little longer than the 6 months on MT you've seen.