Can some please assist with my enquiries?

indierocker85

Hi, I am wanting to help my mum transfer all her debts onto a 0% card. She has about £4000 debt across 4 cards. What I am wondering is, when virgin state they have a 2.98% fee is this payable upfront or can it be added onto the debts balance and repaid that way?

YorkshireBoy

It's paid with your first minimum payment, which will be 3% of the balance.

Subsequent minimum payments, during the intro period, will be £25 only.

indierocker85

So if she transferred £3000 to the virgin card, she would have to pay £115 for her first payment, thats harsh

YorkshireBoy

indierocker85 wrote: »

So if she transferred £3000 to the virgin card, she would have to pay £115 for her first payment, thats harsh

3% of £3,000 is £90...isn't it?

If the size of the payment is a problem, then transfer £3,090 and keep back the £90 to put towards the first minimum payment.

That said, if she can't afford 2-3% minimum payments then things are looking pretty dire aren't they. She's not going to make much of an impression on the debt by only paying £25 per month over the next 15 months or so.

indierocker85

So the first minimum payment is the fee only? And yes, things are looking dire, hence why I am trying to step in and help!

YorkshireBoy

indierocker85 wrote: »

So the first minimum payment is the fee only?

The minimum payment is the LESSER of...

3% of the balance

or

BT fee + £5 + interest + PPI

providing that it will always be at least £25 (unless your balance is less than £25, when it will be your whole balance).

Using your figures...

3% of £3,090 (£3K BT + the fee of £90) = £92.70

or

BT fee + £5 = £97

Therefore, the first minimum payment will be £92.70

Subsequent minimum payments are £25.

neverdespairgirl

indierocker85 wrote: »

So if she transferred £3000 to the virgin card, she would have to pay £115 for her first payment, thats harsh

Harsh? Funny way of describing a 0% loan with a small fee!