I dont even work and I have been told by my bank i can have 15k on a credit card

[Fio2]

I find this totally disgusting. I already have debts and have had to re-mortgage to pay them off. We have a relatively high mortgage and my husband earns an average-ish wage

I really think its disgusting how they encourage you to get into debt

[crunchie]

Offset mortgages come in two types, the Virgin One account where there is one big pot, so you are always x ammount in debt. The other (like First Direct) has spearate accounts that run as a normal account. Therefore I have a mortgage account (£x in debit) a current account, a join account, dh's current account, a savings account and an extra account purely for these credit cards. All of them are linked together, so credit balances in the other accounts 'offset' the mortgage account on which interest is paid. Since this is claculated daily through the month as I spend money less and less is available to 'offset'. However I have these very separate accounts for different things. My savings is for the laptop and holidays, my joint is for all household, my sole account for all everyday spending and the extra account is run JUST for these credit cards.

Like I say you HAVE to be organised and displined, I have about 2 - 3 running at once and up to £20K in this account, but you need to be aware of when the interest free period ends and everything. I NEVER EVER SPEND ON THESE CARDS, THEY ARE JUST USED FOR THIS. I also have a FD credit card for purchases, but I use it once in a blue moon, for a holiday (to get teh insurance cover) and then pay it off straight away.

Don't be tempted with this if you think you might spend teh money. It is my little way of beating the system, but you HAVE to be really really careful

[Bozza]

Very interesting Crunchie. I wouldn't be tempted but would have to keep an eye on DH. I'd only really heard about the VirginOne type account. Our mortgage tie-in is up in August so I will investigate - although it would be quite an effort to change the current account. Would envisage needing a current a/c, savings a/c, mortgage a/c plus the extra credit card one.

Thanks fot that info.

[crunchie]

Worth looking at changing Current account well in adance. First Direct is a good bank and works for me. However Offsets are only any good if you actually have something to offset with.

Another way you can 'use' these credit cards is via a high interest savings account like ing. Then you transfer the balance into that work work it that way. Do look at the website I mentioned as it explains it all good and bad!

[misdee]

what a silly woman that rosie millard is. i have never heard of her or read an article about her till today, but dear me.

[Bozza]

Right crunchie can I pick your brains again? Have just been having a conversation with a colleague. How do you actually go about transferring the credit card money to your current account? Bit confused about that bit.

[bundle]

pamina, dh used to work with her in brighton many years ago, only know her slightly

[crunchie]

Bozza some credit cards allow you to balance transfer to a current account, as simply as balance transferring to another credit card. However most do not. My first direct credit card worked for a while, and they allowed me to balance transfer money from AN Other credit card onto my FD credit card (so I would be IN CREDIT) and then transfer to my FD bank account. However they have tightened up on this and I almost got accussed of money laundering and told I waould have to pay a massive fee next time. Oops.

However Egg credit cards allow a BT to a current account, so the next time I geta new card I will BT the £10k onto my egg card and teh BT this into my current account. takes up to 10 days, but still worth it.

[Bozza]

So I would need to get a 0% credit card and an Egg card as well. Then would BT 10K onto the Egg card and so have 10K debt on one card and 10K credit on the other and then transfer to the current a/c.

You are money laundering crunchie.

[crunchie]

Yep. But you could start with the egg card first, cos they often do the 0% offers, use that and then instead of paying back the balance form your savings account, just before the interest free period ends, take out another card and transfer the blance to your egg (which will pay off the outstanding balance) and start again. Egg is a good card to have as they offer an 'anniversaried' 0% interest period every year (well to me they do, I get 5 months every year, so I can keep doing teh egg one, time and time again and in the meantime use it for 'laundering' the money"!!

[bonniej]

I have in total £30k available on my credit cards, they just keep putting up the limit. I don't work and dh isn't a really high earner so if we were to use it, we could get in serious trouble. I don't think they should put up limits unless requested to do so.

[Fimbo]

My dad's bank sent him a letter to say if he didn't start using his credit car (uses it only about once a year on holiday and immediately pays it off when he's back) then they would cancel it through lack of use. He was livid and wrote them a stinking letter about how long he has banked with them, he's never ever been in debt etc etc. They have since sent him an apology.

[Bozza]

Could I just get an Egg card and pay the 10K off my existing mortgage (it allows overpayment) and then do the money transferring thing?

[crunchie]

Yes, but you would have to work out how you were ging to pay the minimum payments every month - you have to keep these up and it is about £180 - £200 on a £10,000 CC. Hence I keep the money accessible and pay the minimum from the pot.

[Toothache]

Fimbo - I got a letter from M&S More card cancelling it coz I hadn't used it!! I was just about to tranfer the balance from my Egg card to make use of their 6mths 0% interest too!

[cod]

Message withdrawn

[Prufrock]

I'm sort of with Mud on this - just because youare offered credit doesn't meanyou have to use it. Banks don't force you to go into teh shop and enter your pin number.
What I do find wrong though is that the range of financial products available to the average consumer has greatly expanded without any increase in the financial education offered to people. Banks marketing literature can often be deliberately obtuse and mislead desperate people.

I don't work anymore, but dh earns a very good wage, and we have a total of £57,939.4 on credit cards at teh moment - all at 0%. We don't have a mortage at the moment (renting) so I have the cash to cover all the debts sitting at ING earning me 5% interest - I reckon I make about £2,500 a year out of teh credit card companies.
I do it slightly differently to Crunchie. We have 1 card which we use for every prchase throughout the month (Tesco , so we get the Clubcard points as well). We usually spend about £1,200 a month on this. Then I have lots of 0% deals, and always ensure I have one with capacity which I transfer the Tesco balance into every month (ensuring that I put at least the same amount ionto the savings account).

[Twiglett]

Dumb question: how do you 'transfer' to another credit card? do you just pay it off with another credit card or is it more complicated than that?

[crunchie]

I am glad I'm not the only one playing the game pufrock. It is really easy to BT money, all you have to do is call them or fill in the form when you take out the card. I usually call them to activate the card and do itthen. You give them the number of teh account you want to transfer to and that's it.

[Bozza]

Don't you feel a bit cheeky though?

[Toothache]

I have 2 credit cards at the moment. I have savings in an ISA that could pay off one of them..... but like Prufrock I'm gathering interest in the ISA and paying no interest on the Credit Cards. We paid for out wedding by cc, totally our decision, can't blame a cc company for my debt!

However, I do object to how much money was literally thrown at me at the age 18 at Uni!! The minute I opened up a Student Bank Account the £1000 overdraft was there to be used, and they increased it by £250 every year! Very tempting when you're so skint you've been eating bread and beans for a week!!!

[Toothache]

A year after I graduated they started piling on huge interest charges! It had been interest free til then. So I had to get a bank loan to cover it and with my income at the time I took the loan over 5 yrs!! So my interest free overdraft ended up costing me a fortune and I only paid it off last year ( I graduated in 1998).

[Fio2]

well i still think its awful

[crunchie]

Fio2 I agree it is awful - BUT surely people have a choice and have a mind of their own. TBH it is not the banks fault that people overspend, it is individual greed.

Bozza - no I don't feel in the slightest bit cheeky, how much money have banks made from me in the past!! I have been charged £25 for beening one day late on a payment, that is more cheeky than this.

The money is there, I am being offered it, my goal in to get increased credit limits as some are only offering £6k and it is a pain then. I want to have 2 or 3 cards with £20k on them. DH should do it to, but he forgets

[Fio2]

well i have a mind of my own and i still think it is awful ,maybe i should have said yes and gone ot to the co-op this evening but secretly bugger off on holiday ON MY OWN


aaahhhh that would be nice