Date: Sat, 12 Aug 2006 12:05:24 +0100
From: Gareth 
Newsgroups: uk.finance
Subject: Re: New Job - How to Clear CC Balances?

Steve wrote:
> I've been on a fairly low part time income over the past 3/4 years, my
> marriage broke down and I got the kids, which to be honest has been the
> making of me. But that's another story.
> 
> I'm a Dad BTW with four kids.
> 
> Anyway, over this period I've whacked up the credit card a bit in order
> to survive really and buy some time. I reckon I owe about 9k - always
> repaid the minimum payment and extra sometimes when I had the cash,
> never missed though and never got any charges.
> 
> Now the kids are older I've returned to my previous well-paid profession
> and boosted my monthly nett income by about three or four times.
> 
> So my priority now is too clear these cards. I can do it over six months
> or so, incurring the usual interest or I was thinking should I apply for
> a 0% balance transfer, 12 month period Credit Card and take full
> advantage of that?

Yes, sounds like a good idea, but be aware that most credit card
companies now charge a 2% fee for balance transfers, though this will
probably still be a huge saving over the typical credit card interest rates.

I think you basically have three options:

1) Apply for a 0% interest card with a long interest free period, but
with a 2% balance transfer fee.

2) Apply for a low rate for lifetime of the transfered balance card.

3) Apply for a 0% balance transfer card with no fee but a shorter offer
interest free period.

Given that you think you can pay off the balance in 6 months, maybe
option 3 would be best, see:

http://www.postoffice.co.uk/portal/po/jump1?catId=19400177&mediaId=21600438

Also have a look at:

http://www.moneysavingexpert.com/creditcards

Another thing you could try - only pay the minimum balance on the
interest free credit card and pay the rest into a high interest savings
account, that way you will actually earn some interest.

If you do this you must make sure you are sufficiently organised and
disciplined - most of the tricks are explained on www.moneysavingexpert.com

> Will I get one though having only just changed my employer? 

Why not apply and see?  You have nothing to loose apart from a few
minutes of your time.  It is quite possible that you won't get a high
enough credit limit to transfer all 9k, but every little helps.

Gareth.

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