Balance transfers?

[jackpot]

Any savvy money people here?

Right i now have 4 credit cards after just getting a new one. My plan is to pay them off quicker. Capital One, Halifax, Egg and new one is BOS.

Here is the logic. Egg is interest free so i will not be touching it.
Halifax i have a few bob on it so looking to get rid of this as i dont seem to be paying much off as i get wacked with interest each month.
Capital One are the next worse but every time i speak to them on phone they try and get me to transfer a balance over with 0%. I always said no as i wanted to pay this one off but after getting another card (BOS) also interest free on balance tranfers the plan is as follows..

1.Balance transfer from Capital One over to my new BOS. Leaving a balance of 0 on Capital One.

2. Waiting a week or so and then transfering it back taking advantage of the 0% interest on balance transfers Capital One keeping trying to flog me.

Can this be done is my main question??

3. Then transfering my Halifax over to the BOS and closing my Halifax account. Therefore leaving me with still 3 cards all paying at 0% interest for a period of time saving me about £60 a month.

 

[JohnD]

Each time you make a balance transfer you are likely to be charged a fee of 2.5% or 3%

So don't keep doing it

Once you have made a balance transfer, any purchases or pre-existing balances are (usually) charged interest at the high rate.

So:

Put all your balance transfers onto one card which has no pre-existing balance and offers the longest 0% period. Put that card in your safe (or cut it up) and DON'T USE IT for purchases or anything else until after the 0% period has ended. Make sure you pay the minimum each month by direct debit. If you miss a payment your 0% period will end and you will be hit by charges.

HSBC and RBoS are offering some good 0% deals. you may also be able to transfer cash into your bank account. If you do, put it in a savings account paying a good rate of interest.

Unless you have more money than you need, don't treat the extra card and the 0% offer as an excuse to get deeper into debt.

Pay off all your other cards, IN FULL every month by Direct Debit and you will not have to pay any interest on them.

Have you studied Money-Saving Expert?

 

[ricicle]

They normally charge a fee (2or3% of outstanding balance) when you transfer from one to another

EDIT:Too slow for Mr D

 

[Deluks]

No idea. Try the moneysavingexpert credit cards forum.

One thing I do know is to not spend anything on any new card you've just transferred a balance to. Any money paid off will go to pay off the new spend and it's interest, leaving your original transferred balance untouched.

EDIT:Too slow for Mr RandD

 

[JohnD]

http://www.moneysavingexpert.com:80/cards/balance-transfer-credit-cards

I just got a Virgin-brand credit card (actually operated by MBNA). they won't let you do balance transfrers to othe MBNA cards with different brandings, but you can pay money into your bank account and pay off the cards by cheque if you want. They may reduce the credit limit on other MBNA cards (if you have them) when you take out the new card.

 

[stuartinlancashire]

I used to be a card tart doing balance transfers between cards to save money, but now most cards charge a handling fee so the 0% on balance transfers is not as attractive as it used to be.

 

[jackpot]

Im not going to get into more debt, the surplus to requirement card will be destroyed. Yes they do charge 2/3% but on my Halifax alone im paying £45 in interest a month and only paying the minimum payment off so im only actually paying £10 a month.

If i pay the £55 on an interest free over 10 months thats £550 paid off compared to £100. So i think the percentage charge for transfering is well out done by the money i shall save.

Oh and i cant put them all on one card as i have too much money on them.

 

[Bahco]

What's a credit card please?

 

[wanabechippie]

I used to have £2000 or so on a HSBC cc. was paying £15 per month minimum (all i could afford). Looking at a statement I found that of that £15, a massive £0.75p was coming off my balance!!! At that rate, I think i worked out that it would take me 222yrs to clear and cost £40,000

Opened a card with M&S - 4.9% for life of balance transfers and no transfer charge! Looked at 0% transfer cards but their introductory period was only around 10mths. Then the interest rate went up to around 17-20%. Couldn't be arsed starting new cards every few months so went with M&S. Won't be spending on it at all. New purchases are 27ish%

I found the card via http://www.moneysupermarket.com. Put in what you're looking for then they give you a list. [/url]

 

[securespark]

EDIT:Too slow for Mr RandD

We have a Mr Research & Development posting here?


Sorry, my mistake... you meant a Mr Randy.