CC Debt Shuffle

SparciaM

Ok I have 6 Credit Cards, but need to shuffle them around to make the best use. See below:

Mint CC 0% for 9 months balance £1800 (limit £2500)
Egg CC 0% (runs out June) balance £2700 (limit £4500)
Amex CC 15% balance £700 (limit £1500)
Amazon CC 9.9% balance £700 (limit £7000)

Virgin CC 0% for 15 months (just applied, been accepted) limit: £4400
FD CC 5.9% for 5 years (pre approved and applied and accepted) limit: £3500

So, Obviously I need to move the Egg, Amex and Amazon balances elsewhere. Question is: Do I move all to Virgin for 15 months 0% and then in 9 months and 15 months time, try and get another card at 0% - or do I move 95% of £3500 to FD for the 5 year deal and the rest to the 0% deal?!?

I'm trying to look at the long run and the short run. I know I can't clear the balances off within 15 months, but can do it well within 5 years.

I guess I'm wondering if it's worth the risk to stay at 0% hoping that I'd get another 0% card in 15 months, or cutting losses and putting everything at 5.9% and not think about it.

My credit file is quite good - as I've never been rejected for a CC and my lowest limit on any card is £1500.

Bismarck

What are the charges for transferring balances to FD? I'd look at mixing your options for but the good thing is you've got space between what you owe and the credit limits on the cards.

SparciaM

FD charge 2.5% BT Fee and Virgin charge 2.98% BT Fee.

I've also heard that as Virgin are MBNA I can do a BT into my current account, instead of making more than 1 BT.

I was thinking half on FD and half on Virgin, but then was thinking maybe I should put all on Virgin as 0% and hope in 15 months I can get another card with a good limit.

Or I bite the bullet and put most on FD for 5 years and the rest 0% on Virgin.

Bismarck

One possibility is to plan ahead for when the Mint deal ends....stick a load in FD, do a Virgin BT to your current account and move it from there to a good interest earning account with easy access so can use it when you need to pay the Mint CC...

The Virgin fee will hit you whenever you use it so you may as well get the full 15 months out of it....key thing is do you trust yourself not to spend the Virgin money?

SparciaM

I'm in a frame of mind now, that the ONLY card I will spend on and pay off each month will be the Amex card (as I get miles with it). I would gladly stick the money into a no-access 1 year account of something like that.

So you mean BT £4200 to current account (leaving Virgin maxed at £4325.16 inc BT Fee).

Transfer CC debt to FD.

So I'm guessing I would pay the Virgin min payment every month, by transferring money from the savings account (where Virgin money sits) to the CC every month?!? Is that right?!?

Bismarck

that kind of thing...I've not done the maths...I'll leave that to you but you may get a good LOB offer from Mint when it's paid off....it depends on a lot of other factors but having cash separate somewhere else could be useful for paying your loan or something like that. My main point is that you should use the 0% for 15 months if at all to get the value for the BT fee...it's useful that it can hit your bank account directly but that's also the danger....

Key thing here is to keep your options open and be thankful you've got some!

SunderlandBlackCat

SparciaM wrote: »

So you mean BT £4200 to current account (leaving Virgin maxed at £4325.16 inc BT Fee).

If I remember correctly from when I did a transfer to a Virgin CC they only allow you to transfer a percentage of your credit limit (they like to leave a bit extra so they can try & tempt you to spend ion it & then you have to pay the full apr)

Check your Ts 7 Cs