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Best way to convert £10K card balance to cash?

24

Comments

  • so you want to borrow £10K to pay off £10 debt. but then debt number 2 then needs to be paid. +interest. its not really the way to go about it.
  • cattom said:
    so you want to borrow £10K to pay off £10 debt. but then debt number 2 then needs to be paid. +interest. its not really the way to go about it.
    NO. 

    I want to borrow UP TO £10K to finish a project. It's NOT connected to paying off a different credit card. 
  • Certainly in the short term, your credit report will be adversely affected when you use all the credit available to you. And what happens if you cannot sell what you buy for the full amount of £10k?

    If you are going to be able to pay off the £10k in three months' time anyway, why not just wait and then use the money after three months? Unless you are wanting to use the proceeds from your project to pay off the debt.

    It just sounds like a big gamble to me - doing one thing to settle another in a bit of a slapdash way, a bit like a movie plot (I'm thinking 'Catch me if you Can' with Tom Hanks and Matt Damon here) and if you can pull it off, I'd be the first to offer congratulations. 

    However, having recently been through the hell of a DRO and all that entails, I like to now think of myself as a bit wiser where it comes to financial transactions and your plan scares the pants off me.

    But that is just me. Now very much a cautious Kate. You seem to have made your mind up and all that we on this forum can do is offer our opinions and wish you good luck    :)
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • Unfortunately, I recently borrowed heavily on one card. This prompted every card lender of mine to pull their 'money transfer' offers which had been available to me for the last 4 years, and I had naively been relying on.
    So your plan is to buy a 10K item on card A, sell it, use the proceeds to pay off the debt on card B?  Which then still leaves you having to pay off the 10K that's now sitting on card A, plus the £1000 left on card B because whatever you bought for 10K you won't sell for 10K.
    This has got to be the daftest plan ever.
    Money transfer / 0% balance transfer cards have become harder to get anyway in the last year or so, due to lenders reducing their risk exposure since Covid hit.  So it's not just you - though it sounds like your history won't have helped matters.
    I think the nub of your problem stems from your reliance on money transfers.  That is simply not a sustainable way of doing things.  You need to take a step back and come up with another approach which focuses on actually repaying the debt rather than just shifting it from place to place.  The debt-free wannabe board on this forum is an excellent starting point.

    3 months interest = £500. If the loss of converting the £10K could be £500, then the total cost for borrowing £10K for 3 months would be around £1,000, which is acceptable for the project. 

    The money would be utilised to finish a project not to spaff on champagne and caviar. 


    If you're trying to flog a now secondhand £10k item for cash I'd expect to lose a lot more than £500 in the conversion.

    If "cash " also means eBay then you'll be losing over a grand in fees alone.
  • born_again
    born_again Posts: 18,418 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    I think having a word with you bank about a short term loan might be a better idea if you really want to go down that route.
    Life in the slow lane
  • JenB79
    JenB79 Posts: 200 Forumite
    100 Posts Photogenic Name Dropper
    edited 15 September 2021 pm30 6:02PM
    molerat said:
    So you want to borrow cash at maybe 20% + APR ?
    Yup. That would be the plan. 
    If you are determined to convert that limit (or 'available cash limit') into cash then make a cash withdrawal over the counter if you card is with one of the major banks, subject to available cash of course. Obviously take some photo/address ID with you as your credit card alone won't be enough.
  • I think having a word with you bank about a short term loan might be a better idea if you really want to go down that route.
    Obviously not possible, hence the post.
  • I think having a word with you bank about a short term loan might be a better idea if you really want to go down that route.
    Obviously not possible, hence the post.
    Missed that OP had posted later that loan was not available due to card debt.
    Given that I can see card provider turning down any request for cash.
    Even if OP has a £10K limit. They will not be able to take the full amount.
    Life in the slow lane
  • When you say "a project", do you mean something personal, or a profit yielding business project? If it is a profit yielding business project then lenders will be more flexible than just a standard personal loan and a business loan, whilst attracting a higher APR, may well be a possibility, or a business overdraft secured against property. If it is just a house/garden/hobby project then obviously not.
  • I think having a word with you bank about a short term loan might be a better idea if you really want to go down that route.
    Obviously not possible, hence the post.
    Missed that OP had posted later that loan was not available due to card debt.
    Given that I can see card provider turning down any request for cash.
    Even if OP has a £10K limit. They will not be able to take the full amount.
    There's no option to withdraw cash, as stated in various posts. If there was, I would not be seeking to "convert" a £10K credit card limit to cash. I would simply withdraw whatever cash is available. 
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