Balance Transfer to a current account

MobD

Hi all,

I'm looking for a bit of advice. I currently have an Abbey card with a view to a balance transferto a Virgin CC. I have been offered by Virgin to transfer the balance to my current account.

I've not aware that this can be done, if so does anyone know of the benefits and/or implications of transferring your credit card debt to a current account?

Thanks in Advance.

MobD

DeepSporran

MobD wrote: »

I have been offered by Virgin to transfer the balance to my current account.

I've not aware that this can be done, if so does anyone know of the benefits and/or implications of transferring your credit card debt to a current account?

I think you are probably misreading the offer from Virgin.

They are likely to be suggesting that you transfer a balance FROM your current account, not the other way round.

By that they mean that if you have an overdraft on your current account, you transfer that negative balance to the Virgin card, so that you are no longer overdrawn on your current account, but now owe Virgin the money on your card.

The way you have read it is just the normal way of paying off your credit card bill - i.e. you take money out of your current account to pay the card. If that puts your current account into overdraft, that is probably a bad thing (unless you have a 0% overdraft of course - for example if you've just opened an A&L current account)

MobD

I'm sure he said transfer to my current account, Virgin will be calling me this afternoon so will confirm.

Thanks mate

CannyJock

MobD wrote: »

I currently have an Abbey card with a view to a balance transferto a Virgin CC. I have been offered by Virgin to transfer the balance to my current account.

Idea of this is that you transfer an overdraft to your Virgin card to put all your debt in one place. It can be used to actually put money straight into your bank even if you don't have an overdraft, but resist the temptation if you've got genuine debt I'd say.

I'd definitely transfer the Abbey balance to the Virgin card if you're being charged interest on it, then just keep making the payments to the Virgin card, using the 15 month 0% period to clear it all.

Your first payment on the Virgin card will be 3% of the balance, subsequent payments are only £ 25 from month 2 to 15. Standard advice is to set up a DD to make sure you always pay at least the minimum - miss one and you'll lose the 0% status - and make additional payments as you're able.

MobD

CannyJock wrote: »

Idea of this is that you transfer an overdraft to your Virgin card to put all your debt in one place. It can be used to actually put money straight into your bank even if you don't have an overdraft, but resist the temptation if you've got genuine debt I'd say.

I'd definitely transfer the Abbey balance to the Virgin card if you're being charged interest on it, then just keep making the payments to the Virgin card, using the 15 month 0% period to clear it all.

Your first payment on the Virgin card will be 3% of the balance, subsequent payments are only £ 25 from month 2 to 15. Standard advice is to set up a DD to make sure you always pay at least the minimum - miss one and you'll lose the 0% status - and make additional payments as you're able.

Thanks for the advice CannyJock, i will probably transfer the balance to my Virgin card rather than to my bank account. I was kinda tempted with the cash first, i guess i was being greedy

MobD