Juggling my Credit and Debt

Big_Alan_2

I have £12,600 worth of credit card debt with Egg, about £4,000 is charged at a low interest rate of 0.482% per month and the remaining £8,600 is charged at 1.385% per month.

Now I understand that the lower figure of £4,000 will be paid off first leaving the remaining £8,600 building up the interest until I start to pay it off when the lower amount is cleared.

The good news is, I also have a good credit history and have three other means of paying off this debt with Balance Transfers at overall, lower rates.

• I have a Barclaycard with a max limit of £6,500 and only £2.39p owing on it, which I have just paid. I can use a BT with Barclay Card of up to £5,000 at 6.9% for the life of the transfer with NO handling fee.
• I have a Halifax C/C with a zero balance and a £11,500 limit. I have some Credit Card Cheques which can be used for BT at 6.95% for the life of the balance with a minimum 3% handling fee.
• I have an HSBC C/C with a zero balance and a £6,000 limit, on which I could do a BT at 2.9% for two years on balances and a 2.5% balance transfer fee applies.

My real question is, armed with all these options, in which order should I use my credit cards with BT’s at the least possible cost.

I intend to clear my debt within 2 years.

I have no need to use these cards for anything else other than clearing my existing debt.
Once used, they will be locked away.

UK007BullDog

Well if I was you I would try to find a 0% card to shift most of the debt to.

Then use the HSBC

Call up halifax and barclays and ask them for a 0% BT rate for you or a better life time rate. If they dont want to play along then cancel them in writing and then in 2 months time try applying for more 0% to balance transfer the rest.

Always try to get a 0% first as their BT fees are also 0%. Then one to two months before they end find a new 0% rate and transfer even if the BT fee is 5% it is still cheaper than a low life time rate, but this depends on the amount as well. Make sure that the cards are not being used for any shopping and set up a DD for the minimum payment so you do not loose the 0% rate. And that you cancel them in writing so that you can re-apply as a new 0% customer 6 to 18 months later.

sheslookinhot

Get a 0% card, transfer the balance and close all other cards.