To ask how balance transfers on credit cards work?

[TikTokstar]

Okay, I’ll start this by saying my mental health isn’t the greatest right now so please, please don’t come at me.

I have £4K of CC debt that I’m paying off, but the interest is awful, £70 a month. I can only afford to pay off £200 a month, minimum payment fees are £150 a month.

I’ve been offered by the same bank a balance transfer, 0% until August next year. I might not even be successful if I do go for it, but the interest each month really isn’t helping me get rid of this debt.

I really want to do the transfer (there’s a 3.4% transfer fee) but I won’t be able to shift the debt completely by August next year. I’m so worried about what I’ll do then. What if I can’t move it onto another 0% and they whack the interest up to something ridiculous?

Can anyone advise without having a go at me?

TIA.

Can you transfer a balance with the same bank from one card to another? Most won't let you do that I don't think.

If they do allow it, 3.4% fee is £136 but you would be saving roughtly 15mths of £70 interest, over £1,000, so would be over £800 better off.

If they put the rate up once the 0% has ended, you won't be any worse off than you are now, and will owe £3,000 less (£200 x 15mths)

Well it’s with Barclays and this is Barclaycard? Maybe they wouldn’t then.

I guess I just worry that I wouldn’t be able to find another card to transfer it to after the 0% period had ended.

If you move to a 0% (and worth doing a soft check which will help see if you would be accepted) and pay at least the minimum from now until the 0% ends, you should be able to get another 0% to move again. Would incur another transfer charge, but as above, much cheaper than paying the interest.

If you either don't make the minimum payments, or incur additional debt (by spending on the card for example) you will end up in a worse situation and will likely have less options available.

I've just done similar. I've got 20 months 0% but I know I won't quite of paid it all off by then so will look out for another 0% when that comes to an end to put the remainder on.
If I can't find one ( which I highly doubt) then I'll just finish paying it off with interest. The rates are similar to what I was paying before I transferred my balance so its no big deal, it's a no brainer really

you might want to try and look for a longer 0% deal.

I used 0% credit cards to pay for medical treatment (admittedly I always had more in savings but wanted to keep it just in case).

Just before the 0% ends I applied for another and transferred.

You cannot transfer between suppliers, ie a barclaycard to barclaycard or Mastercard to Mastercard is not possible.

eg Tesco Mastercard to Virgin Mastercard wouldn’t be possible.

the min payment might be lower - I saved the difference and bought down the balance at end of 0% with the savings.

DO NOT SPEND ON THE CARD OR MISS A PAYMENT.

and close down cards once you’ve balance transferred away from it.

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

Hello TikTokstar, Some things to remember about balance transfers.
Although you will pay no interest on the amount transferred, you will be charged interest on any new purchases on the card. If you make new purchases your monthly payments will be put towards paying off the new things, first. So you need to think if you can manage without buying on your credit card until you have paid off the debt. If you can, then you could pay off £3K by next August if you continue to pay £200 a month. Even with interest on the rest it should make paying off the remainder easier.
Also worth talking to one of the debt management services like the CAB or Christians against poverty. They will not judge you and their advice is free.
Good luck with whatever you decide

Hi OP,
Balance transfer cards you have to transfer from one card to another - usually in a different banking group.

If your 4k debt is on your barclaycard and it is the barclaycard that has given you the offer then the offer is to transfer from another card to the Barclaycard.

Have Barclaycard offered you a money transfer offer? If so , and your limit is high enough you can take the offer of cash to your bank and then pay it back off your card. The card will pay back the part of your balance with the highest interest first so it will pay off your existing balance and you will be left paying back the offer.

A money transfer is not the same as taking cash out from an ATM which you should not do due to high interest.

If you need a new balance transfer card look at the links here

https://www.moneysavingexpert.com/credit-cards/

You can do a "soft search" to see if you are likely to be approved for the cards without the search affecting your credit score.

If you have not paid off the card before the offer runs out credit card interest tends to be about 30% a year but the amount you owe will be less so not as daunting and hopefully you will get further offers. Barclaycard send me offers regularly.