Transfer debt onto 0% credit card

[granadagirl]

Might be silly question
If you owe money to catalogue,overdraft,payday loans (not me)
Can they get a 0% credit card (no debt ccj etc) and pay them off with this ?
Then pay just the card off at 0% for say 18mths ?
Is that how it works?
Are there any monthly fees for doing this?

Depends on whether the person is eligible. If s/he has lots of debt, it might be tricky to get a 0% card.

Has the person tried to negotiate with her creditors?

0% cards tend to have a lower credit limit. Perhaps contact Stepchange, National Debtline or Citizens : Advice?

I think you can only transfer from other credit cards but I might be wrong.

In theory, they could get a 0% credit card and then do a cash transfer to transfer 'money' from the credit card into their bank account and pay the debt off with that.

I'm not sure it's a good route to go down as I think they charge a fee for doing this, and the interest rate on the cash transfer is higher. Plus it's really just moving debt around. But in theory it should be possible.

There’s normally about a 3% fee for the amount you’re transferring but definitely worth looking. Some cards will pre-approve you or at least let you know you’re not likely to be approved before you actually apply so it won’t affect your credit rating (applying and being turned down can make it less likely you’ll be accepted next time, annoyingly!) Have a look on Money Supermarket to see if there are any good deals. If your friend has a lot of debt or bad credit they may not be eligible but if they’ve always paid things on time and are just struggling due to Covid etc then they may be fine.

If they are accepted then it’s a good idea to work out the monthly payments to have it all paid off in the timeframe and then don’t spend anything on it, as it may not be 0% on purchases, and it’s easy to rack up more debt that way!

Often they are not really 0%. You pay 3% say on the balance when you transfer it from another card or to your bank and then there is no interest for 12 or 18 months but you have paid interest upfront. It is added to the amount that you owe and so not always obvious

They are scarce at the moment due to cv19 and unless you have excellent credit the rate may be high.

Sometimes in a new account you might get spending on 0% for x number of months and rarely there is an offer that is completely free when opening a new card to get 0% transfer (so no fee)

And tbh if they have payday loans and catalogues, even if they can’t get a 0% card they can save a lot on the interest rates they’ll be paying on those for sure! Maybe a word with Citizens advice or some proper financial advice would be good if it’s not as straightforward as being approved for a good card?

No bad credit history, Never thought off credit limit! They don’t often give you 5k first time round
She doesn’t want to go on any payment plan
She wants it under one roof with a set amount per mth for x mths
The catalogue is 39.9% and owes £1990
The bank overdraft don’t know how much they charge

So if say 2.5% charge for 4343
Is that 4343 + 2.5% = £4452 ??
Or Is that not the right way

She wants it under one roof with a set amount per mth for x mths

What she needs is the lowest interest rate, which is likely to be a special offer credit card. Even if she can't transfer the whole amount, she might get a large enough limit to transfer some of it, so will save money.

With standing orders the number of payments once set up is neither here nor there. Just set them up and they run themselves. The 'under one roof' is a red herring designed to trap people into arrangements profitable to the lender without considering whether the reason why someone ended up in debt has been solved.