Juggling 0% deals and credit limits - HELP!!

richiet60

Hi guys,

I have most of my debt (£4000) on a Halifax One card at the moment but am coming to the end of the 0% offer, I also have around £700 on my other card. The plan was to switch both debts over to the Abbey Zero on 0% for 6 months with no fee as I hope to make serious inroads into the debt over the latter part of the year. Issue is Abbey agreed to give me a card, but put the limit at £1700, so I now have, in the lenders eyes, an extra £1700 available credit meaning that it will be even more difficult for me to transfer the other amounts to a differnet 0% deal now? Abbey cant increase the credit limit even if I clear the Halifax card and close it (which of course was the plan) for 6 months.

Not sure how to get more on 0% without having the same issue with another provider giving me a small credit facility?! #

Any ideas?

Thanks

YorkshireBoy

Depending on when you applied for the Abbey card, whilst the search may be on your file it may take another month or so before the credit account appears (along with it's £1,700 limit and any debt you've placed on it) and is visible to other lenders searching your file.

There are dangers associated with making too many applications over a short period of time, so you'll have to weigh up whether you think it's worthwhile applying for another card.

If you decide it is, then get the application in quickly.


EDIT: The Abbey minimum payment is only £5 per month (from memory?), so if you can't get another card then be sure to throw another 2% at the Halifax card (ie assume it still has a £4K debt on it) so you're in a better position come December.

CannyJock

Would add that if you're going to try for another card, and don't already have one run by MBNA then you might want to try there.

Virgin Money card would be my pick, 15 months at 0% for a 2.98% fee and they're known to be reasonable with credit limits (depending on personal circumstances etc etc).

Since you've got the £ 1700 there, you should make use of it and at least move some of your debt onto the 0% fee-free for the 6 months - maybe the £ 700 so you can close that card down, and £ 915 from your Halifax (assuming Abbey allow 95% of credit limit) ?

Like YB says, set up the direct debit to repay the minimum on the Abbey card and route all other funds into repaying the highest APR debt.