Transferring credit card debt...

[splurge]

I have two credit cards totalling �4500. I am paying 16.9% on one of them and 17% on the other. The cards are from my student days 5 years ago and i haven't spent anything on them i am just making payments every month. The debt doesn't appear to be getting any smaller. I have good credit, i never miss a payment and i am a homeowner etc.
Does anyone know if i would be better transferring these to a 0% credit card or taking out an unsecured loan. I want them repayed in at least 3 years... i feel i have wasted enough time and money with these cards.
Thanks guys xxx

[Ethel]

You are certainly paying far too much in interest and something must be done.

I suspect you have been paying only the minimum amount, which you are very lucky if it covers the interest, so the outstanding balance either increases or never reduces.

There are some excellent 0% credit cards, but you must have plans for when the 0% runs out. You must pay the debt off, or transfer to other cards before this happens.

If you are not confident you can do this maybe a personal loan or a fixed rate credit card would be better for you.

The fixed rate credit cards mean you pay a relatively low rate of interest for the life of the balance.

Excellent independent advice here:

http://www.moneysavingexpert.com/cards/

[factor-fiction]

Yes, I agree with Ethel- look at the Moneysavingexpert site.
Definitely look at 0% cards that run for around 12 months. You may have to pay an initial fee of around 2.5%-3% but if you stick to your payments plan you will save a significant amount compared to 17% interest.
But most 0% offers last a year or less so you may have to look to switch to another 0% in a year's time.
Alternatively there are some 'life of balance' offers of around 6%- they may be worth a look.
If you do take a balance transfer make sure you don't then make purchases with that card, as purchases may attract a high interst rate and any payments you make will be set against the 0% first leaving you to incur maybe 16% on the purchase bit

[splish]

Thanks guys, based on the advice i have enquired with one of the credit card companies if i can transfer the other balances across at 0% and i can! So the majority of the debt will be 0% until March 2009. Will just have to pay a big chunk every month to really get rid of them.
xxx

[tiggerblue10]

Try Capital One. They're doing 0% on balance transfers till 01/12/09.

[tiggerblue10]

http://www.capitalone.co.uk/creditcards/capita l-one-bt-platinum-card.jsf

[splish]

splurge, don't know if my last post worked cos it isn't showing on my computer, but i have taken the advice and i had 2 cards, now i have put them together and one of them is a transfer and i have it for 0%. But if you have a few then you are prob best getting a new one and transferring all balances to 0%