0% Balance transfer advice needed please!

Dobbibill · 5 December 2017 at 6:36PM

Geworgie wrote: »

Thank you for that!
Now we have the new cc all our finances are 0% now. Hoorah!! So we just crack on paying it all off.

Spending it is much more fun!! 🙄

Now is the time to start snowballing the debt.

Anthorn · 5 December 2017 at 7:41PM

Geworgie wrote: »

Hello!

So we have a substantial amount of debt (32k) that we are working towards paying off at a rate of around £800 p/m.

2 finance agreements
1 overdraft
1 car loan
4 credit cards - 3 of which are 0% until 2019ish

Our debt and spending is now firmly under control and as far as I can see it we're in the best position we can be... Almost!

One of the credit cards is accruing interest on a balance of around £8500. We've had to just suffer this as we've been unable to get another 0% card so we left it and suffered the interest while our credit scores built back up again so we could apply again.

I was looking today at 0% cards and I think our scores are good enough now that we will be accepted.

My question is this; is there a way to know how large your credit limit will be ahead of applying? I'd ideally like one card to transfer the entire balance to although transferring even half to a 0% card would be an improvement...!

Thanks.

That's exactly what I've done recently. The 0% period is coming to an end but I haven't cleared the balance so I balance transferred it to another 0% BT card.

In order to get an idea of the credit limit on a new BT card application or at least whether the limit will be enough make sure you fill out the card details of the card you'll be transferring. You'll get to know rather quickly whether you can transfer all that balance or only some of it. In the case that only some of it can be transferred that card account will still be open and there is not a lot to stop you applying for another 0% card to clear it other than the number of credit searches on your credit history.

Geworgie · 6 December 2017 at 1:20PM

Only applied for one card and it covered the balance. 🙂

No need to apply for anything else now. Yey!

Geworgie · 6 December 2017 at 1:24PM

Dobbibill wrote: »

Now is the time to start snowballing the debt.

I've been thinking about this and do try to employ the tactic where I can but as it stands we pay more than the minimum £100 p/m off each card, where the minimum balances are 50, 70, and 80 p/m.

Would you now reduce these payments to the minimum and put the extra £100 or so towards another debt or would you leave it as it is and just pay off a bit more from the smallest debt as and when we can?

Thanks!

Savvygranny_2 · 6 December 2017 at 1:38PM

If you start another debt, it won't be long till you are back in a hole. Pay off the extra, but put it all towards the card with the earliest 0% end-date, then when that is clear move on to paying all the extra (plus the regular payment you no longer need to make) to the next earliest end-date. Only get into new debt if every other option is exhausted - you know how easily it builds up.

OR if you are sure you can pay off all the cards before the zero balance expires, you could put some of the spare money into an instant-access savings account with interest - remember most "regular savings" accounts are actually instant access, don't let their name put you off and there are a few that pay you 5% on £100 per month.

OR you could stick it in a regular saver account, then pay off a lump sum on one of the cards and keep the interest for a treat. You'll deserve one by then!

Dobbibill · 6 December 2017 at 6:56PM

Geworgie wrote: »

I've been thinking about this and do try to employ the tactic where I can but as it stands we pay more than the minimum £100 p/m off each card, where the minimum balances are 50, 70, and 80 p/m.

Would you now reduce these payments to the minimum and put the extra £100 or so towards another debt or would you leave it as it is and just pay off a bit more from the smallest debt as and when we can?

Thanks!

Now that the CCs are at 0% I would focus on the overdraft - it's quite likely to be costing you more and is also a debt the bank can withdraw if they choose to.

For other debts, you would be well place to consider playing with the figures in the snowball calculator to see which order will reduce the amount of interest you will pay.

http://www.whatsthecost.com/snowball.aspx

0% Balance transfer advice needed please!

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free