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£4000 on credit card - want it dealt with asap

by StudentFlyer 22 July 2009 |

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For various reasons I've run up a bill of £4000 on my HSBC Gold CC. I want it dealt with as quickly/efficiently as possible.
I can't afford to pay it off in one go, but in monthly installments of approx £150; 0% balance transfer cards don't seem to suit as I'd have to swap after 12 months or so and pay another 3% fee for the privilege.
I was thinking more along the lines of a fixed low interest card (fixed for duration of balance).
Any advice or other tips?
Is there a better way round this debt? It's perhaps a small amount compared to others I've seen, but £4000 at approx 19% interest is unsustainable as far as I'm concerned.
Have stopped using the card except for emergencies and try to pay £200/month to help bring the balance down, but I'm not making very good progress.
Thanks

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212

SoftwareBear posted
I suspect that a 0% deal with a 3% fee is pretty good ... if you had a loan you'd be looking at least 8% pa.
That's only a £120 yearly fee (if you change each year) ... leaving you £ 200 x 12 - £120 = £ 2280 to pay the debt off each year.
You'll clear the debt in well under two years.
Don't think there are any quicker/cheaper ways short of borrowing from family or leaving the country.
I can see why these things are so attractive.
Posted on 22 July 2009 | Love 2 loves Report
3

arfan posted
With a Barclaycard Simplicity Card, the rate is currently 6.8%, and there is no balance transfer fee. You could pay off your debt in just under 2 years.
However like Software Bear said, the best option is probably to go for a 0% balance transfer card. The only problem with that is you are not guranteed to get a another balance transfer card when the 0% offer finishes.
Posted on 22 July 2009 | Love 2 loves Report
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StudentFlyer posted
Thank you both for your input; I appreciate it.
Posted on 22 July 2009 | Love 0 loves Report
83

SmudgeButt posted
You might also look for a card that has a special interest rate for a life of balance transfer. Might be easier to get a limit that would allow you to shift your entire debt and a on going low rate while you're paying it off.
Don't forget to set up an automatic min direct debit so you never get caught on the late payment charges!
Posted on 22 July 2009 | Love 1 love Report
824

MikeGG1 posted
Whichever way you go, don't put any new spend on the new card. It will pay off balance transfers first and charge you Mega interest on the new spend.
New spend should be on the old card and make sure that you settle that in full by the due date. Set up a Direct Debit to make sure.
Mike
Posted on 22 July 2009 | Love 1 love Report
212

SoftwareBear posted
And ... even if you can't get a subsequent card for a second year .. it's worth doing just for the low interest rate.
Chop the card up as soon as you get it ... or never carry it ... it's amazing how less urgent something can seem a few minutes later ...
Posted on 22 July 2009 | Love 0 loves Report
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StudentFlyer posted
Thanks for all the tips!
Posted on 22 July 2009 | Love 0 loves Report
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thinkoutsidethebox posted
If anyone has credit cards, loans, car finance etc, taken out before April 2007 I would emplore you to challenge it under the consumer credit act 1974.
I have seen this work on several occassions with friends using the company below.
www.yourfreshstart.org.uk
Its about time the banks got a taste of their own!
Posted on 27 July 2009 | Love 0 loves Report
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moneybags posted
Challenge it as thinkoutside the box said. That is good advice. You probably owe nothing in the end so save your cash in your pocket and enjoy some extra beers. Go on a holiday. Buy presents for your friends. Be happy. Dam the credit card rip off !
Posted on 03 August 2009 | Love 0 loves Report
2

Industryknowhow posted
Claiming to clear a debt on the basis is unenforcibility is not to be recomended as a quick step.
Any claim is on the basis of the card being found to be irredeemably unenforceable and no matter what a lot of companies are saying this is not a quick process.
I do work in this industry and, to be absolutely clear, it can and has been done for a surprising number of people, see http://www.manchestereveningnews.co.uk/news/business/s/1152798_cartel_client_review_wins_landmark_case
but the following must be bourne in mind:
1) there is no solid rule that says all cards pre April 2007 are unenforceable, the facts are it is some cards. Therefore if a company charges an upfront fee (and most will for funding purposes) make sure it has a 100% refund policy that you know they will stick to
2) there are a lot of companies jumping on the bandwagon, taking money of people and not having a clue how to run these claims. If a company cannot demonstarte that their own clients have had successful claims then walk away
Posted on 27 November 2009 | Love 0 loves Report

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