Can one use the old card after transferring its balance to a new 0% card?

julie777

A friend has a low credit rating. His old card is up to the limit due to unemployment.
He finally found a credit company to offer him a 0% card but it is only for 16 months. Then interest will be 30%.
As he cannot pay it off in that time and may not get another card offer could he in theory go back to using the old card at 18%?
With a loan from me he could pay off the 0% card and then put all outgoings on the old card, maybe paying for some of my bills, paying me off in 2-3 months.
My head's in a bit of a muddle over this but any advice or info is welcomed. 
He has suggested that with all the uncertainty he might as well keep his current card and forget about clearing the debt.
Debate!

[Deleted User]

Yes, he can keep using it. You might prefer him not to though.

He should use any spare funds to repay you. But first, he should use the BT offer. 

Only lend him the money if you're prepared not to get it back.

born_again

As above he can keep using it, but given he can't payback the balance transfer. They are only going to be digging a even bigger hole for themselves.
As to lending them the money. Can you afford to lose it?

2e0arr

julie777 said:

A friend has a low credit rating. His old card is up to the limit due to unemployment.
With a loan from me he could pay off the 0% card and then put all outgoings on the old card, maybe paying for some of my bills, paying me off in 2-3 months.
My head's in a bit of a muddle over this 

study law, watch judge judy , full of people gormless enough to loan friends money they cannot afford and not getting it back.
DON'T LOAN ANY MONEY... TELL HIM TO BORROW FROM HIS FAMILLY . IF THEY WONT LEND TO HIM TAKE THAT AS A WARNING.
 we will say we told you so

julie777

Thanks. We don't think it is a big risk in this case as we know him very well. 

MallyGirl

Maybe try a quick search on here for all the previous cases where people have said this and then been disappointed. There are lots of them

julie777

Does anyone know if the minimum repayments will be more or less than his current card.
I'm thinking they could be higher if they want him to pay off within 16 months?
But if it works much the same as most cards they will not require that - in which case the required 
monthly amount would be lower as no interest. He will pay as much as he can of course but I don't want to 
encourage him to take a card that will demand way more than he can manage.

MallyGirl

Each card defines their minimum repayments in the T&Cs. Many are 1% plus interest but some are as high as 2.5% plus interest. He needs to read the details carefully before applying plus he needs to know what his current terms are

Alexd52

Need to look at the card's minimum payment terms, usually cover interest plus a small percentage, but these do vary from card to card. The minimum repayment is not related to a 0% balance transfer duration

2e0arr

julie777 said:

Does anyone know if the minimum repayments will be more or less than his current card.
I'm thinking they could be higher if they want him to pay off within 16 months?
But if it works much the same as most cards they will not require that - in which case the required 
monthly amount would be lower as no interest. He will pay as much as he can of course but I don't want to 
encourage him to take a card that will demand way more than he can manage.

Julie how much do you need to loan him  ?if he is a real friend why not clear his debt as a gift instead of a loan ?

A_Lert

Yes. Transferring a balance off a card doesn't usually close that card. However the old card provider may opt to reduce the credit limit, or in rare cases close the card.

IMHO the sensible thing to do is to transfer the balance to the new card. Set up a direct debit for the minimum repayments and pay off as much extra as possible each month. Don't borrow more unless it's essential, in which case use the old card for purchases and aim to repay it in full.

As for you, don't lend money to friends, it's a good way to end up losing both.