Consolidating my credit card debt

Even with a 0% rate, paying the minimum is unlikely to make much of a dent in your credit debt.If the minimum monthly repayment amount is as low as 2% of the card balance, the interest can often exceed the amount owed.Consolidation works best when your ultimate goal is to become debt-free.This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.No balance transfer fee (1.5% balance transfer fee charged initially and fully refunded within 60 days) applies on transfers made within the first 3 months, 3% afterwards (min £3).Transfer a balance within 90 days of opening an account to get the 0% deal; otherwise the rate will be 20.626% p.a. The APR and length of promotional offer may vary as they are dependent on your personal circumstances.Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee.Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.

A debt consolidation loan is something you should only consider if you carry a balance on your credit cards.

The duration of the introductory offer may vary depending on your personal circumstances. Start with a credit limit of £250-£1,200 and you could get an increase on your 4th statement.

Once the 0% deal ends the balance transfer rate will be 34.95% p.a. Earn cashback when you shop online with over 250 top brands with Virgin Money Back.

Debt consolidation is a strategy to roll multiple old debts into a single new one.

Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.

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