Should I apply for a personal loan to clear high interest rate credit card?

[Deleted User]

No. It means you need to contact Cap One and ask them to carry out a balance transfer from your Vanquis card.

Be aware that there are sometimes issues with BT'ing from Vanquis.

Mapbroke

Thank you, good to know. With balance transfer can they take part of the balance or only the whole amount? In this case balance is £3,000 but only been approved £1,000 balance transfer to 0% card.

[Deleted User]

It cannot be any more than the limit - usually around 95%.

Willing2Learn

@Mapbroke

Just make sure you use the 0% promotional period to reduce your overall debt-level. Make your monthly payments more than the minimum so that the debt reduces quicker. Apply for another BT card when the six-months is up.

[Deleted User]

Willing2Learn wrote: »

Make your monthly payments more than the minimum so that the debt reduces quicker.

Just to clarify - the OP needs to focus on the remaining 2k on the Vanquis card, so extra payments need to go to that card.

Willing2Learn

Deleted_User wrote: »

I'd disagree with that bit. The OP needs to focus on the remaining 2k on the Vanquis card.

I agree, focus on the Vanquis card. I have admonished myself accordingly.

System

Mapbroke wrote: »

Thank you, good to know. With balance transfer can they take part of the balance or only the whole amount? In this case balance is £3,000 but only been approved £1,000 balance transfer to 0% card.

You can ask them to transfer the maximum they can transfer on the 0% card from your existing card. You will then owe say £1000 at 0% to the new card and £2000 at 49.9% to the existing card.

Your plan then is set up a direct debit to make the minimum payment on the 0% card and pay off absolutely every penny you can afford every month on the 49.9% card until it is clear. Once the 49.9% card is clear you then work out how many months left of the 0% deal you have, divide what you owe by that then amend the direct debit to that amount so the 0% is cleared by the end of the deal.

Once clear of the debts and if you trust yourself with money you can get a card that pays cash back on purchases and set the direct debit to clear off in full every month, cancelling the other cards. Use that card to do some of your normal spending, i.e petrol or weekly shop. Use it to pay some of anything you buy over £100 for the Section 75 protection. What you will now do is build up some positive credit history and get rewarded for doing so.

Mapbroke

Ok so to clarify - I am better off paying as much as I can on the Vanquis card in the next six months, and just the minimum payment on the £1,000 0% interest card?

Willing2Learn

Mapbroke wrote: »

Ok so to clarify - I am better off paying as much as I can on the Vanquis card in the next six months, and just the minimum payment on the £1,000 0% interest card?

Correct - That method is the MSE method as it saves the most money! (reduces total interest paid)

Mapbroke

Everyone - you've been so helpful, I can't thank you enough. Feeling a lot more motivated that this is a problem that I can solve!