The Best Option

kimwp

Very rough numbers, but you are currently paying circa £120 a month on interest on your credit card. If you got that onto a 0% offer, that's £120 a month extra to pay off the debt.

enthusiasticsaver

I don’t think you should consolidate due to the fact that it isn’t a strategy to actually repay the debt. Having one monthly payment isn’t an advantage on its own although it might simplify your finances if you have lots of debts, it isn’t cheaper and it almost always leads to higher debt as people run up the credit cards again unless they change lifestyle and spending habits. It is tantamount to shuffling deckchairs around on the titanic. 

What you can do is move that credit card and PayPal to 0% by getting a BT card or money transfer card if you want to include the overdraft. That will save you interest and if you keep up the same level of repayment it will be paid off sooner. You won’t get a 0% for the whole lot in one go. Address the car finance once those are sorted again by a money transfer card if you can. You have the advantage that you have four smaller debts so moving to 0% is easier. Once the debts are higher they are more difficult to move as very few companies give high limits on 0% cards. 

samejandwee

Thanks everyone. 

I think unless there’s any other different opinions, what I’m hearing is it’s best to get the credit card and PayPal onto a balance/money transfer at 0% and go for it in the timeframe.

Leave the car finance and the OD for now and focus on bigger interest debt.

I’ve done balance transfers for credit cards before but didn’t know you could do it for PayPal accounts!?

Martico

You can't Balance Transfer for PayPal - that would have to be a money transfer. They are less common than balance transfers, but some may be available. Whether they're open to you at the moment is another matter

samejandwee

Just to make sure I have understood the advice provided - If I can get a money transfer card, put both the credit card and paypal onto that but if not, get a money transfer for the paypal and a balance transfer for the credit card? (All at 0% of course)....

samejandwee

And also, a stupid question...

Whatever way I end up doing it - the best money transfer card is for 12 months at 0%. I estimate at best I can clear it within around 20 months. 

In 12 months time, is it possible to get another 0% balance transfer account again to move the money transfer account which would now be at 26.9% APR to finish the remaining payments at 0% still?

I hope I have made sense....

Martico

It might be poossible, there's no way of knowing. Your chances would increase if you manage to pay off a substantial chunk of the debt over the next 12 months. Either way, you'd benefit from a year at 0% for some of your debt. First things first though - you may not be accepted for any such cards in the first place. 

samejandwee

Ive been pre-approved on a money transfer over 12 months for 0%. Do you think i should wrap up both the credit card and paypal on the money transfer or try and get the money transfer AND a balance transfer at 0%?

Money Transfer is 0% for 12 months.

Balance transfer is 0% for 27 months.

pre approved for both and confident i would get one or the other - dont know how likely both is.

enthusiasticsaver

I am not sure how likely it would be that you would get both so initially I would try for the credit card BT as it is over a longer period and slightly higher rate than paypal. You also don't know what limit you will be given. 

kimwp

The advantage of the money transfer is that it gets the PayPal debt into the balance transfer "system", as balance transfers are generally more available. But it's impossible to tell you the best one to go for given the unknowns of how much 0% credit you will be given and what offers will be available to you in the future. Anything you can get onto 0% (taking into account fees) is good, it frees you to throw money to paying off the higher interest debts. The aim is to pay less interest, so more of your money pays off the capital.