Balance Transfer Partial

1 Post
Newbie
Hi All,
New to the forum, I want to be debt free and have been reading through a lot of posts and the debt free guides on MSE and have recently cleared a few debts (stupidly it wasn't a very efficient way of paying it off, but what's done is done).
I have two debts remaining, both credit cards. I looked at my eligibility for a balance transfer credit card and it suggested I could get one at a lower interest rate than my current two with a 36 month 0% balance transfer period but with a credit limit at a fraction of the debt of either of my existing cards (15% of my total debt) so it would mean I would have 3 credit cards. I suspect that I can only get this credit limit due to the fact I recently went over the limit on my credit cards and also have recently missed payments for the previously mentioned, now cleared, debts.
The question is this, should I take this offer as it is lower interest and will at least put a fraction (about 15%) of my existing debt into 0% interest, or should I wait a few months for my credit score to recover and try to get a better interest rate / larger credit limit?
One other question I have is that I have around £2,000 in savings which I am planning to spend (read need to) over the next 3 months, would it be sensible to use that money now to pay towards a credit card and then use the credit card to do my planned spending or is it more sensible to keep the separation between paying off/spending?
Thanks in advance.
New to the forum, I want to be debt free and have been reading through a lot of posts and the debt free guides on MSE and have recently cleared a few debts (stupidly it wasn't a very efficient way of paying it off, but what's done is done).
I have two debts remaining, both credit cards. I looked at my eligibility for a balance transfer credit card and it suggested I could get one at a lower interest rate than my current two with a 36 month 0% balance transfer period but with a credit limit at a fraction of the debt of either of my existing cards (15% of my total debt) so it would mean I would have 3 credit cards. I suspect that I can only get this credit limit due to the fact I recently went over the limit on my credit cards and also have recently missed payments for the previously mentioned, now cleared, debts.
The question is this, should I take this offer as it is lower interest and will at least put a fraction (about 15%) of my existing debt into 0% interest, or should I wait a few months for my credit score to recover and try to get a better interest rate / larger credit limit?
One other question I have is that I have around £2,000 in savings which I am planning to spend (read need to) over the next 3 months, would it be sensible to use that money now to pay towards a credit card and then use the credit card to do my planned spending or is it more sensible to keep the separation between paying off/spending?
Thanks in advance.
0
Latest MSE News and Guides
Replies
You could use some of cash to clear the interest bearing balance, but avoid putting on more debt, unless at 0%.
Campervan paid off summer '21... MFW progress tbc
The other thing that makes a big difference is being on the electoral roll - you can opt out of the open register
More than a third of IVA`s fail....fact.
Could A Debt Relief Order help you ?
Never pay a fee for a Debt Management Plan.
For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.