Balance transfers

[Blue Duck]

Got a credit card bill of around 3k and its crippling us at the moment and feels like I'll never pay it off. 

so I have been looking at intrest free balance transfer cards to defer the payments for a few years.

I ask here as you are a prudent bunch and I usually find the quality of advice available is top notch.

Anyone done it? any other ideas? 

 

[Rob_the_rich]

I've done it, it is a no brainer. If you keep doing it, they twig and might not give you the deal you want, and it can affect your credit rating. Check money saving expert site for best deals. go for it.

 

[Marvo]

If you do it right you can save money but be careful of the fine print about what happens if you make new purchases on the card, what interest rate they'll be at and how the payments are allocated.

 

[Sharpend]

Really depends on your circumstances as to what you should need to do. 

If you have a good credit history, then just get a card on zero balance then just use it for transfer. Be sure to clear it within the free time. 

If you already have a bad credit history and depending on the age of the card there are other ways to clear the debt for nowt.

 

[Murdoch]

Apply for an interest free card, don't use it, and use every penny you have spare to pay down the debt.

 

[Blue Duck]

Thanks very much for the advice!

More info:

I used the card to pay some bills when I was skint (even more than I am now) and its just built up over the years on other unexpected things, I think my credit history is good as I pay all my bills on time apart from the water (*****) and have no other major debt's also the limit on this card keeps going up but I'm sure they just want to courgette me more.

Should get a credit report sorted!

I checked MSE and It looks good for 40 month card with a 2.55% fee and min £25/month or 1% +fee's which is better than the £100 odd I'm paying at the moment that seems never ending!

Any other options ??? I was considering a loan but she who wares the trousers says no! :slap

 

[Murdoch]

Thanks very much for the advice!

More info:

I used the card to pay some bills when I was skint (even more than I am now) and its just built up over the years on other unexpected things, I think my credit history is good as I pay all my bills on time apart from the water (*****) and have no other major debt's also the limit on this card keeps going up but I'm sure they just want to courgette me more.

Should get a credit report sorted!

I checked MSE and It looks good for 40 month card with a 2.55% fee and min £25/month or 1% +fee's which is better than the £100 odd I'm paying at the moment that seems never ending!

Any other options ??? I was considering a loan but she who wares the trousers says no! :slap

I didn't think card providers are allowed too increase credit limits these days with a request from the card holder

 

[Blue Duck]

its gone from 1k to 7.5k in about 5 years I have not requested this.

I had a few other credit cards but payed them all off except this one.

 

[NozSpark]

All I would say is if you are in the ****,,, then stop digging...

Whatever you do, do not make any debt that you have more than what it is now... If you can transfer it to a card with an interest free period then do so... however, as soon as the new card turns up cut it up and pile every spare bit of cash that you can afford into it

 

[Sharpend]

If you can get a free balance transfer, then that would be the best option, alternatively the second best option is a loan, over the shortest term you can afford, then bin the card.

then refuse to have credit and live to your means, sounds harsh but it's the best thing that could happen to you, I do it and have been for a number of years and I've never been so well off. Don't have the stress as I don't have to worry about juggling money, just set aside a small amount each month for the emergency fund.

remember they only exist by keeping you in debt!

 

[steptoe]

Ive not had a debt in my life for over 20 years except when the ex wife fkd me over, got that cleared,

only debt I have now is the mortgage,

have even got present wife talked into this once she has present debts sorted she swears to have no more,

 

[Blue Duck]

All I would say is if you are in the ****,,, then stop digging...

Whatever you do, do not make any debt that you have more than what it is now... If you can transfer it to a card with an interest free period then do so... however, as soon as the new card turns up cut it up and pile every spare bit of cash that you can afford into it

If you can get a free balance transfer, then that would be the best option, alternatively the second best option is a loan, over the shortest term you can afford, then bin the card.

then refuse to have credit and live to your means, sounds harsh but it's the best thing that could happen to you, I do it and have been for a number of years and I've never been so well off. Don't have the stress as I don't have to worry about juggling money, just set aside a small amount each month for the emergency fund.

remember they only exist by keeping you in debt!

I feel the money I'm paying in interest and fee's is just money down the drain, this way I could pay it off in 30 months or less then be debt free.



I hate this instant credit Radishes we've been sold as a nation of fools.

I live within my means as far as I can, If **** crops up and you have to deal with it there & then and sometime money's tight. I don't have an excessive lifestyle but 2 kids cost an unbelievable amount of money! :slap

Thanks again!!

 

[Sharpend]

Kids cost what you want them to cost, now grandchildren -well the clues in the title, they cost a grand everytime you see them!

 

[Evans Electric]

I  feel for you ducky , ( Could't spell commiserate)  

I remember the John Major government saying that one of the worst off sections of society was a middle class, white, male, skilled or semi-skilled manual worker , married with 2 children and directly employed . 

He would probably be in debt and would not have "Any spare cash jangling in his pocket to even  buy a small luxury"  

All I can offer is to NOT borrow to pay off the original debt .     One thing I did say to a mate many years ago , who was in a similar position to yourself.............I can't listen to your financial woes  while you & the missus spend £50 each a week on fags . 

Don't know if you are a smoker Ducky , its not my business ,  I'm just saying .

 

[binky]

worked with a fella who paid his mortgage off in 10 years, didn't have a car, didn't do much holidays, just lived on the cheap with kids.

Kids don't have to cost a fortune, but it does require a change of ehtos, like buying second hand clothes, hand- me downs, etc etc as far as possible. Xmas is about family not presents, caravan or tent by the sea is as good as going to Spain......etc etc

 

[Blue Duck]

mondeo man has become bmw on finance man...

I am in a unique subclass that there is little help out there for people like me, so I just have to get on with it.

If however I was a one armed muslim black lesbian cyclist they'd be chucking money at me. :C

I've cut out the fags by the use of an electronic vaping device which probably costs £5 a week depending on what I'm low on, but that will soon change due to a dodgy piece of legislation from the EU (TPD) which will stop me from buying in bulk and products will also be taxed @ 57%!

I try live within my means other wise, going on our first holiday in 5 years this year, the younger one exists purely on hand me downs but the older ones feet grow like you wouldn't belive! 

Our main out goings are food and bills.

It's not cheap living in London, every **** and his dog are trying to get their hands in your wallet!

 

[ProDave]

I used an interest free credit card once (actually 3 in a row) when Lloyds carped on us by one week saying they would extend the mortgage for some new windows, then after paying the deposit for the windows we went back to fill in the paperwork and in the 2 weeks between they had "tightened their lending criteria" and would no longer lend us anything. Did I ever mention I hate Lloyds and would not give then any business again if they were the last bank standing.

Anyway get a NEW 0% credit card, transfer the ballance, then put it in a drawer and DO NOT use it for any normal spending.  There is normally a 3% transfer fee so it's not really interest free, but 3% for 18 months or whatever deal you can get.

The reason you must not use it for putchases, is the small print of the way payments are treated.  Payments normally go to paying off the interest free ballance first, so if you spent £500 in a month, and then paid £500, your interest free ballance would go down by £500 and you would be charged the full interest rate on the £500 spending.

If it's not paid off by the time the interest free deal ends, get another different interest free card and repeat.

This got us out of the hole that Lloyds left us in and it was paid off in a little over 3 years using three interest free cards in succesion.

 

[Sharpend]

I dont know your full circumstances duck, but if you have any time at the weekend then go do some window cleaning, you can make £20 an hour easily and who's to know? 

 

[Blue Duck]

time at the weekend, what's that?? 

:slap

Don't even have time to sort my own electrics let alone anyone eles's.