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    • Help1234
    • By Help1234 11th Jul 18, 12:15 PM
    • 189Posts
    • 67Thanks
    Help1234
    Credit card debt
    • #1
    • 11th Jul 18, 12:15 PM
    Credit card debt 11th Jul 18 at 12:15 PM
    Hello,

    I recently bought a house and have been doing a lot of renovating, which has ended up costing more than we anticipated. We have finished renovating now and are left with 5,000 credit card debt. I'm only now about to start paying this off but it's going to be a slow process (estimate it taking a year). I'm currently getting charged 50 per month interest.
    Should I keep this debt on my card or would I be better transferring it somewhere else/taking a loan etc? Something with less interest rates. Never been in debt before so I am a little clueless!
Page 1
    • The_Analyst
    • By The_Analyst 11th Jul 18, 12:57 PM
    • 64 Posts
    • 87 Thanks
    The_Analyst
    • #2
    • 11th Jul 18, 12:57 PM
    • #2
    • 11th Jul 18, 12:57 PM
    Unless you have a 0% interest card, it will probably take forever to pay off as you will get charged interest on your outstanding balance each month. You would be far better taking a loan and paying off the card
    • Brookside88
    • By Brookside88 11th Jul 18, 1:00 PM
    • 274 Posts
    • 367 Thanks
    Brookside88
    • #3
    • 11th Jul 18, 1:00 PM
    • #3
    • 11th Jul 18, 1:00 PM
    get a 0% balance transfer credit card, not a loan
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • Help1234
    • By Help1234 11th Jul 18, 1:06 PM
    • 189 Posts
    • 67 Thanks
    Help1234
    • #4
    • 11th Jul 18, 1:06 PM
    • #4
    • 11th Jul 18, 1:06 PM
    Thank you. I am looking at the Santander - 27 months 0%, no fee balance transfer card. However it says "So-so chance - 60% approval rate for this card".
    • Brookside88
    • By Brookside88 11th Jul 18, 1:38 PM
    • 274 Posts
    • 367 Thanks
    Brookside88
    • #5
    • 11th Jul 18, 1:38 PM
    • #5
    • 11th Jul 18, 1:38 PM
    Go with one that your most likely to be accepted for, even if it's a shorter offer, it'll still save you a huge amount of interest

    That's what I'd do
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • Help1234
    • By Help1234 11th Jul 18, 2:02 PM
    • 189 Posts
    • 67 Thanks
    Help1234
    • #6
    • 11th Jul 18, 2:02 PM
    • #6
    • 11th Jul 18, 2:02 PM
    Thank you. This one is 100% chance: Capital One - 6 months 0%, 3% fee, 34.9%
    REP APR. I am confused though with how this works. Do I transfer my 5000 to this card, and then pay it off each month and for 6 months will not be charged any interest? What happens at the end of the 6 months?

    Thank you.
    • Brookside88
    • By Brookside88 11th Jul 18, 3:02 PM
    • 274 Posts
    • 367 Thanks
    Brookside88
    • #7
    • 11th Jul 18, 3:02 PM
    • #7
    • 11th Jul 18, 3:02 PM
    Exactly. That's a pretty high fee though., is there anything less than that? At the end of the 6 months it just reverts to the standard variable rate.

    6 months is pretty short too, you'd just do the same process again once that offer ends
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • alan_d
    • By alan_d 11th Jul 18, 4:01 PM
    • 79 Posts
    • 49 Thanks
    alan_d
    • #8
    • 11th Jul 18, 4:01 PM
    • #8
    • 11th Jul 18, 4:01 PM
    Thank you. This one is 100% chance: Capital One - 6 months 0%, 3% fee, 34.9%
    REP APR. I am confused though with how this works. Do I transfer my 5000 to this card, and then pay it off each month and for 6 months will not be charged any interest? What happens at the end of the 6 months?
    Originally posted by Help1234
    You have 5000 to transfer, so the fee would be 150, added on top of the balance.
    If after the 6 months you still have say 4000 left, you'd be paying 34.9% APR on that.... If you paid say 200/month the interest would cost 1641 and it would take 2 years 5 months to pay off:
    https://www.moneyadviceservice.org.uk/en/tools/credit-card-calculator

    You'd be better finding a card with a longer interest-free period and/or a lower APR.
    • Help1234
    • By Help1234 11th Jul 18, 4:18 PM
    • 189 Posts
    • 67 Thanks
    Help1234
    • #9
    • 11th Jul 18, 4:18 PM
    • #9
    • 11th Jul 18, 4:18 PM
    It sounds like the first one I posted is better, but only 60% chance of approval. Does anyone know why that might be? I have good credit score. If I get turned down though will that sink my credit score?

    Thanks
    • Brookside88
    • By Brookside88 11th Jul 18, 10:33 PM
    • 274 Posts
    • 367 Thanks
    Brookside88
    Virgin and mbna tend to be the best for balance transfers, what's your chances on those?
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • Help1234
    • By Help1234 12th Jul 18, 8:51 AM
    • 189 Posts
    • 67 Thanks
    Help1234
    They are both 0% chance. I wonder what this is based on? The only options MSE gave me were the Santander one and then 3 others all 6 months with 3% fee.
    • Help1234
    • By Help1234 12th Jul 18, 8:55 AM
    • 189 Posts
    • 67 Thanks
    Help1234
    Ah I figured out why it!!!8217;s because I!!!8217;m a PhD student. My partner is in full-time employment so if I put his details in I get a lot more options with 100% chance of success including virgin. However, the 5000 on the credit card is in my name. If we took out a balance transfer card in his name, would we be able to transfer the 5000 debt that is in my name?
    • jbkmum
    • By jbkmum 12th Jul 18, 10:08 AM
    • 72 Posts
    • 206 Thanks
    jbkmum
    Ah I figured out why it!!!8217;s because I!!!8217;m a PhD student. My partner is in full-time employment so if I put his details in I get a lot more options with 100% chance of success including virgin. However, the 5000 on the credit card is in my name. If we took out a balance transfer card in his name, would we be able to transfer the 5000 debt that is in my name?
    Originally posted by Help1234
    Yes you can transfer to a card in someone elses name. I do that to keep our debt at 0%, constantly switching between myself and husband
    • MallyGirl
    • By MallyGirl 12th Jul 18, 11:32 AM
    • 2,950 Posts
    • 7,946 Thanks
    MallyGirl
    the exception is Tesco which do not let you BT from a card in someone else's name. Everyone else does.
    • Help1234
    • By Help1234 12th Jul 18, 1:46 PM
    • 189 Posts
    • 67 Thanks
    Help1234
    Thanks all, the Virgin card has been approved in my partners name. Thanks for all your help. Hopefully now I will be able to clear the debt a little quicker
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