Stupid question, but not good at all this

sonicshelly

If I transfer my 3600 credit cards debt onto new ones at 0% for balance transfers, how do I work out what my min payment will be.

I cannot afford the £160 a month I am paying at the mo and would like to cut this down for the time being until I return back to work after having a baby.

But I am trying to work out what my payment would have to be as I have a loan and overdraft which I want to considate together aswell.

Any help, much appreciated

ShelfStacker_3

Most likely, the minimum repayment on the £3600 on a balance transfer card will be the same as the minimum on any other card (or set of cards). All it means is that more of your repayment will go towards repaying your actual debt, rather than the interest, meaning your debts get paid off quicker. If you're unable to meet the minimum repayments, either contact your card companies immediately to inform them of your circumstances or get a consolidation loan.

Simon1981

It depends on the min payment terms of your 0%interest card provider. Most cred cards have 2%-3% of balance as min payment.

t/fore 2% of £3600 = £72/mon
3% of £3600 = £108/mon

However as the first reply stated there isnt any reason why your current repayments should be more than this unless you have some cards that have 5% of balance min payment. Also, if you have PPI or similar on your card your min payment will be higher as you pay for this monthly. I personally wouldnt bother with this, but that is my own ardent opinion (not advice!). Remember also there will be a a fee for balance transfer, but that is normally massively outweighed by benefits of 0% interest.
.

sonicshelly

Hello, thanks for advice. Whilst I have been looking around for the best balance transfer deals, I cannot find or not sure what to look for, for the % for min payment?
Sorry its just i'm not used to all of this?

Simon1981

The minimum repayment terms will be in the small print on any cred card info. Will usually say something like "minimum payment is £5 of 2% of the balance, whichever is greater". Not those words but the same jist.

YorkshireBoy

sonicshelly wrote: »

I cannot afford the £160 a month I am paying at the mo and would like to cut this down for the time being until I return back to work after having a baby.

£160 on £3,600 equates to a minimum payment of 4.4%, which is very strange. Maybe you've lumped all your debts in to get the £160?

But I am trying to work out what my payment would have to be as I have a loan and overdraft which I want to considate together aswell.

Then you need a super balance transfer card, and if you go for MBNA, or an MBNA run card, you can kill 2 birds with one stone...they pay 0% cash into your current account and, after the first minimum payment of 3%, only charge £25 per month.

The downsides of course are:

1. You'll hardly pay anything off your debt in 12-15 months, so you'll need a plan as to what to do with the remaining debt next year, and

2. Not working, you may not get accepted.

sonicshelly

Hi, currently paying £50 on egg card £1500 debt, £10 on nationwide cc £280 debt and £100 barclaycard £800 debt.

I also have a £2400 loan with northern rock and £1200 overdraft.

So wanted to move credit cards to 0% balance transfers. My hubby works and this is out debt but they are in his name.

Thanks

sonicshelly

just thinking, i'm not sure where i got £3600 from, just having another look - DOH

sonicshelly

sonicshelly wrote: »

just thinking, i'm not sure where i got £3600 from, just having another look - DOH

Such a der! Added up the wrong debts, this was the overdraft/loan.

No wonder we are in debt as i cannot add up.LOL