Should I?

simonts

I did an SOA quite awhile back and its probably generally still accurate but this is a bit more specific. I managed to pay off my smallest creditcard but then the credit crunch started all the CC companys twitching.

This is a mini SOA for my CC'ds which I am beginning to snowball to get shot of them.

Nationwide £0 Balance with £2640 limit, No BT offer available 17.9%
Capital One £5500 Balance with £5600 limit, Balance Transfer on 0% for about 3 months then 17.9%
Egg £6200 agreement terminated, 29.9% will not budge on rate after multiple requests
Virgin(MBNA) £4300 with £4500 limit, No offer and just set me at 34.9% (Will try and fight that tonight)

I tried for a fair rate CC with a balance transfer offer but was declined so do not want another search. While being a high APR mess I am hogtied in terms of the APR's.

While I am raising cash to settle these balances would it seem to make sense that I transfer £2500 from Virgin to Nationwide? even with the BT fee I should be better off after a month or so not accruing 35% on £2500 and should be able to fight the rest of the Virgin balance down. I also should come into a bit of money in May and can settle the egg card leaving me with about 7-8k on decent APR and about £2/300 a month to snowball.

tyllwyd

If the only question is would it be better to have £2640 borrowed at 34.9% or at 17.9%, then that's got to be pretty easy to answer!! I can't think of any reason why not to - it doesn't increase your debt overall. I suppose the other question is whether you'd rather have your debt with Nationwide or Virgin - but with an APR like that, it is hard to see how it could get worse.

Tiglet

Yes, I'd say that sounds reasonable.

I'd say that it's a good idea to close the Virgin card after you do the BT, although someone else said that Virgin might offer you a good deal in a few months' time. I think that if there's any chance at all that you'll risk running up any further debt on the Virgin card in the meantime, you should get rid of it to be on the safe side.

simonts

The limit with virgin was higher, So I dont have the chance when the balance goes down the limit gets adjusted also.

As I bank with Nationwide I would generally expect fairer treatment from them regarding the card.

Sounds like sense to me 17.9% is better than 34.9%

Bit of rough calc:
Interest from NW would be applied at 1.491% each month
Interest from Virgin would be applied at 2.908% each month

On £2500 Nationwide apply £37.27 interest and Virgin £72.70 :eek:

BT Fee 2.5% = £62.50 which would be returned in a little under two months of not paying the interest on the virgin card..Quite scary that in effect I save myself £35 a month by moving it :eek:

Other than my mortgage this is the last time I ever get involved with credit :mad:

pania

simonts wrote: »

Other than my mortgage this is the last time I ever get involved with credit :mad:

i'm so with you on that one simon.. If i didn't have debt i'd be rich rich rich... it's a horrible feeling and a tough lesson to learn but it looks to me asthough you are sorting yourself out in a good way

I'd definately go with the balance transfer option, rather your pocket than theirs, you'd have thought Mr Branson would consider himself perfectly rich enough by now and not needing to prey off us for more with extortionate interest rates, but clearly not....

Tiglet

simonts wrote: »

Sounds like sense to me 17.9% is better than 34.9%
Definitely
Bit of rough calc:
Interest from NW would be applied at 1.491% each month
Interest from Virgin would be applied at 2.908% each month
On £2500 Nationwide apply £37.27 interest and Virgin £72.70 :eek:

I think you've used simple interest. Using compound interest gives
NW: 1.35% per month = £33.81
Virgin 2.53% per month = £63.15

(although the argument still holds up)

BT Fee 2.5% = £62.50 which would be returned in a little under two months of not paying the interest on the virgin card..Quite scary that in effect I save myself £35 a month by moving it :eek:

What's scary about saving £35 a month?:p

simonts

Tiglet wrote: »

What's scary about saving £35 a month?:p

Just the not realising till now that such a simple step and a one off fee keeps around £350 as my money and not a grabbing creditor :T by the end of the year.

I feel a serious ebay session coming on tonight.