Trying to move credit card debt to lower APR options

A question about : Trying to move credit card debt to lower APR options

Hi,
I currently owe Ј11,607 on 2 credit cards with APR of 29.9%.
Trying to find lower rate options, offered a 0% 32 month transfer to Halifax Credit Card but only got offered Ј732.
I accepted it but very depressed about how little I could transfer.
I am desperate to clear my debts as soon as possible as I have primary progressive multiple sclerosis and have no idea how long I will be able to keep working full time.
I do get DLA and use it for a motability car (I could not get to work without it) and to pay for help with shopping, housework etc.
I am not in debt crises yet as I can make the payments but I am really afraid of what may happen if I suddenly get more disabled and can't work.
Can anyone advise?

Best answers:

• If you do get more disabled and cannot earn money then you tell your creditors that you will no longer be able to make the contractual minimum repayments. They'll agree to accept lower payments from you and they will probably freeze the interest as well. You then do everything you can to save as much as possible and eventually you can offer them a payment in full and final settlement of the debt and the remainder of the debt is written off.
  Don't worry about that yet. That's a matter for the future.
• Hi,
  If you are able to meet your current payment obligations I would not worry too much about what may happen in the future.
  Deal with it when it does happen, they are non essential debts, so even worst case scenario, you get taken to court, and a judge sets a re-payment amount that you can afford, at best you can just pay what you can afford through a DMP or similar, not worth losing sleep over, there will always be a solution at hand.
• Thank you for the advice guys.
  Although I can afford the repayments it feels like it will take forever and I go into panic mode sometimes.
  Feel calmer now.
• Have you run the debts through snowball calculator, to see how long they will take to clear, at your current repayments?
• No. I haven't heard of the snowball calculator.
  I have tried to work it out myself. I have an appointment with the bank I have been with for a long time.
  They have made a provisional offer of a 5k loan at 18.9%. If I can get it I will take it over 5 years.
  I will then have enough left over to throw as much as I can at the cards 29.9% card balances.
  I hope that in a years time I will be in a position to move more debt onto a 0% card.
  Does this sound sensible or have you got better advice for me?
  I am a novice at this.
• I feel a bit like I am back at school but here goes.
  I have got the Ј732 on 0%
  That leaves a balance of Ј10,875
  Paying back over 5 years at 29.9% will cost me Ј10,195 and Ј351 a month
  If I get the loan at 18.9% over 5 years it will cost me Ј2,765.69 for 5k of my debt and Ј129.43 a month.
  The balance of Ј5,875 at 29.9% over 4 years would cost me Ј4,262.40 and Ј211.19 a month
  My total apart from the 0% per month would cost me Ј7,028.09 and be Ј340.62 per month
  My brain is melting down now and I have forgotten the question.
• So, excluding the 0% bit, your total monthly payments will go down from the current Ј351, to Ј340-62.
  That's great.
  What I was pointing out was that (although in your case it doesn't), it can work out that the combined, overall monthly payments work out higher than the existing monthly payments, due to the shorter repayment period.
  BTW. Will the Ј5,000 loan clear one of the debts completely, or will there still be a small remaining balance?
  If the latter, have you factored in the monthly payments, on the small remaining balance?
• Yes it will clear one debt of Ј2,444 completely.
  The balance of will be on 1 credit card.
  Do you think that sticking to the payment plan I have made will put me in a better position to get lower APR on the balance of the credit card in a year or two?
• There's a chance that, when you go to close the cleared card, they might offer you a 0% balance transfer deal.
  In that case, you could move the balance from the 29.9% card.
• To find if you are eligible for a 0% credit card I suggest using Martins eligibility tool, which you input all your details into and it tells you which card you have the best chance of obtaining without leaving a search on your credit file.
  I have managed to get accepted every time I have applied for a 0% card using this tool, which has now enabled me to stooze whilst repaying my debts.
  Here's the link you need.
  https://www.moneysavingexpert.com/cre...01#eligibility
  HTH
  Chris.
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