Bit of advice needed

Cryptoguy

Since getting my inheritance i've made a massive effort in regards to getting my debts under control. I've paid off £35,000 worth of debt and have the pictured remaining. Ive managed to get two natwest credit cards with excellent promotional offers and would like to know what the best next step is. Im thinking of. Im thinking pay off the hastings loan with the £10k and use £2600 of the other Natwest card therefore hastings will be gone. Then use the remaining £5400 to make a dent into the sainsburys loan. My only concern is that on my credit file it will then show utilisation of 100% on both cards which could hamper my credit score.

What would you do??

elsien

Your credit score doesn’t matter. What is relevant is your credit history.
The fact that you’ve maxed out your credit if you do use the card as planned would only be relevant at the point you wanted to apply for more credit or a loan.
When looking  at affordability, it doesn’t really matter whether the debt is on a card or a loan. It’s still showing up as money that you have borrowed, whatever the form. .

Cryptoguy

Thank you. Would you say that my plan is the best way forward?

elsien

Is there an early repayment fee on either of those loans?

How long are your promotional offers for, and what would the interest rates be at the end of those periods?
How much could you throw it at the credit cards each month to start getting the balance down on those - the loan repayments that you are paying now? 

Cryptoguy

The sainsburys loan balance is the settlement figure. The hastings loan i took out two days ago therefore I have 12 days to pay back with no cancellation fee. My intention was to pay back £600 per month therefore keeping the repayments pretty much the same. Promotional periods are 19 months and then they move onto 26.46%. In 19 months id be looking for other 0% purchase cards.

TheAble

Can you actually transfer loans onto that card? Assume it's this one:

https://www.natwest.com/credit-cards/purchase-and-balance-transfer.html

, which suggests not.

But if you can, it sounds a reasonable plan in principle.

Cryptoguy

Id need to pay the loan using the card instead which will come under the purchase instead of a balance transfer.

Rob5342

Cryptoguy said:

Id need to pay the loan using the card instead which will come under the purchase instead of a balance transfer.

Can you actually do that? When I've made payments to loans by card before it has said that credit cards can't be used.

Cryptoguy

I've just called Sainsburys and no you cant make a payment over the phone. Only via bank transfer. Any other suggestions?

Cryptoguy

So i've just done a £25 payment to Hastings direct and they do accept credit card payments. Therefore, the plan is to pay off the Hastings loan with the 0% cards and then hit the sainsburys loan as hard as i can to get rid of this as quickly as possible.

FreeFallerSaver

Cryptoguy said:

So i've just done a £25 payment to Hastings direct and they do accept credit card payments. Therefore, the plan is to pay off the Hastings loan with the 0% cards and then hit the sainsburys loan as hard as i can to get rid of this as quickly as possible.

For your own peace of mind you might just want to double check that those payments to Hastings on your 0% purchase card aren't treated by NatWest as cash advances rather than purchases. Hopefully not, but if they are you'll be hammered on the APR for those transactions.