Credit card help

W

woolyhead

Guest
I currently have cc with AIB owe about 3500Euro. I also pay a mortgage and car loan and try save about 500 euro month. I cannot take out another loan. Does anyone have any ideas to help me clear this. I cannot pay it off in one lump.Is it possible to change cc company without changing current account?
Any advice would be great!
 
Do a balance transfer to a card with a zero introductory rate. Check out the Best Buys forum for more details, and also read this Key Post on credit cards.

Try not to incur any more credit card debt until you have paid off what is currently outstanding.
 
Also, forget about saving 500 a month and instead put the 500 a month against your most expensive debt first.

No point in earning 3% interest when you are incurring 7%+ on a car loan/credit card.
 
Cut up the card with a scissors.

If you have enough put aside for an emergency, stop saving 500 a month and instead clear off the card in 7 months. Then start saving again. You will earn more by paying off the card (at 12.9%+) than saving (at 4% max).

Switch to one of the credit cards with 0% introductory in the best buys as CCOVICH says. If you switch to paying off instead of saving, then you should be able to avoid anymore interest between now and when it is paid off.

I chose Ulster Bank Zinc Card with 0% for 9 months and 12.9% APR thereafter.
 
CCOVITCH

Can I ask about the below quotation, from the CC Key Post:

Transferring a large balance requires the same discipline as taking out an interest free loan in that if you don't have the amount borrowed repaid in time (say, six months), you will be liable for interest on the full amount transferred (ignoring any partial repayments) for the full six month period i.e. if you don't repay in full by the end of the six month period, you forfeit the interest free period and interest is charged as if the full balance is outstanding for the entire six months.
Click to expand...

If the OP was to avail of a balance transfer to UB Zinc, 0% for 9 months, and paid say €200pm for 9 months, reducing the debt to €1700.

Are you saying that he will then be charged 12.9% on the new outstanding amount, or on the amount originally transferred, ignoring the amount paid over the 9 month 0% period?
 
irishpancake said:
Are you saying that he will then be charged 12.9% on the new outstanding amount, or on the amount originally transferred, ignoring the amount paid over the 9 month 0% period?
Click to expand...

It depends on the card, but yes, this is possible (in the same way that failing to clear the full balance outstanding at the end of any month results in interest being charged on the full balance). All I can say is read the terms and conditions very carefully.
 
Woolyhead,

For a start I would stop paying into the savings and start paying onto the card. Put as much of the existing savings that you're comfortable with onto the card.

Also, look at your budget and see if there are any ways you can save on what you're spending.

You also need to look at why you have this amount on your credit card. If it's a one off spend then fair enough but if it's just lifestyle debt(god I sound like Eddie Hobbs) you need to look at ways of making sure that you don't run up even more debt.

Good luck
 
Hi all,

Thanks for all the advice. I went into Ulster bank yesterday and rang BOS so hoping to transfer over the card and avail of 0%and also hide card or cut it up.All going well this give me 6-9 months to pay it off. But still have to try and save 500 month for wedding.So just going to draw up budget of incomings and outgoings and monitor what I spend to try have some sort of life for next few months!

Thanks everyone much appreciated.
 
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