Balance transfer

magpies79

So finally been given my first worth while 0% offer but of background always been ok not great with money but never been late or missed a payment until I went through a divorce some what just just over 13 years ago which unfortunately lend to mortgage arrears.

from that I got 2 defaults and 2 CCJs they have now all gone and were paid off and don’t have any missed or late payments for over 6 years.

ive just taken an offer from Halifax of 0% 27 months with a 3.6% transfer fee I believe.
I’ve transferred a balance from a very card that my wife had managed to build up a balance on apr was around 49% account is now closed I’ve also moved some myself so in total it’s £3,000 on 0% for 27 months plus the fee.

so it’s been a long long time I’ve had a 0% so I’ve sent up a direct debt of £120 a month as a minimum payment then my wife is gonna over pay every month is this the best method to pay it off in time I did £3,000 dividend by 27 gives me £111 a month so did 120 as there will be a fee added as well 

Nasqueron

The latter approach is how I do it, though some will prefer to pay the minimum and save the balance to earn interest until the payment at the end. It's largely dependent on how disciplined you can be

Brie

Confused.  You are divorced but still share finances?

Whose card is it?  Yours?  But wife had a card and ran up an excessive amount that hasn't been paid in the last 13 years?  Wouldn't that debt be statute barred by now?

Anyways - If you have have set up a DD with a set amount of £120 and the DD minimum amount the bank wants is more then they will take more.  It's only if the minimum is below £120 that they will take the £120.  If you are suggesting that you have set a standing order that is always going to be £120 even if the bank wants more then you will lose your 0% deal. 

All that said - assuming there is a fee charged of 5% then that will add £150 to the balance so the average amount that needs to be paid is £116.67.  That's assuming you pay over 27 months.  More likely it will be 26 months which makes the average payment £121.15.

magpies79

Sorry for the confusion lol no was saying I’ve always been good with money with a good credit history but 13 years went through a bad divorce fell behind on a lot of things which then went onto be defaults and CCJs. 

All these past debts have been cleared and have been for some years and now my credit history seems to of improved a lot no missed payments in over 6 years.

I’m now remarried the fee charge is 3.5% so think that gives me a total of £3,105 to pay I’ve set the direct debit to take £120 a month so should be good hopefully overpayments as well do I close the card once it’s cleared 

sorry just reread your point with regards the minimum payment and me losing the 0%

 Have  I gone about this wrong then I’ve set up a standing order to pay £120 a month and a direct debit is in place to take the minimum payment when my statements generated but it’s on 0% the requested payment would never be £120 will it? 

Appreciate you taking the time to reply 

magpies79

Nasqueron said:

The latter approach is how I do it, though some will prefer to pay the minimum and save the balance to earn interest until the payment at the end. It's largely dependent on how disciplined you can be

Wish I could lie and say I’d be disciplined enough for that but monthly when I get paid and straight out my bank is best for me I reckon 
I’m still due a year a pay rise  work on the railway and was meant to getting 5% backed dated 18 months but can’t see that happening soon as we have just received ballots for strike action again but if we ever get it I’d use to pay off card as well 

Nasqueron

magpies79 said:

Sorry for the confusion lol no was saying I’ve always been good with money with a good credit history but 13 years went through a bad divorce fell behind on a lot of things which then went onto be defaults and CCJs. 

All these past debts have been cleared and have been for some years and now my credit history seems to of improved a lot no missed payments in over 6 years.

I’m now remarried the fee charge is 3.5% so think that gives me a total of £3,105 to pay I’ve set the direct debit to take £120 a month so should be good hopefully overpayments as well do I close the card once it’s cleared 

sorry just reread your point with regards the minimum payment and me losing the 0%

 Have  I gone about this wrong then I’ve set up a standing order to pay £120 a month and a direct debit is in place to take the minimum payment when my statements generated but it’s on 0% the requested payment would never be £120 will it? 

Appreciate you taking the time to reply 

If you pay the minimum in sufficient time before the DD is due it probably won't get taken but it depends how much gap you allow, 1-2 days and DD will most likely go as it's too late, 7-10 days you'll probably be ok.

That said does the bank not allow a fixed DD every month instead? I know most of mine do e.g. Barclays, Santander, Halifax, M&S, Tesco

magpies79

I’ll have a check when it sent it up it asked if I wanted to pay a set amount each month most cards I use I tend to make payments through the app rather then direct debit to be fair 

maxximus75

Make sure you pay the transfer fee off as I don't believe it is included in the 0%?

Nasqueron

maxximus75 said:

Make sure you pay the transfer fee off as I don't believe it is included in the 0%?

BT fees have been part of the 0% deal for every deal I have ever had 

magpies79

Nasqueron said:

maxximus75 said:

Make sure you pay the transfer fee off as I don't believe it is included in the 0%?

BT fees have been part of the 0% deal for every deal I have ever had 

It’s been some years I’ve had one but I always thought they formed part of the 0% deal I’ll double check though