cancel credit card.

A

AppleSun

Registered User
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164
ok guys,
I have had a credit cards for years. always managed to pay it off no probs. recently moved into a new house so the credit card got a bit of a bashing. have paid 6k off it in the last 4 months (since we moved house) but stuff that we needed has been going on to it too so i'm finding it difficult to clear.

So i basically am thinking of either asking them to reduce the limit by about 80% or cancel it altogther.

my question is, if you owe money on it what happens when you cancel it? do you have to pay it back straight away in a lump sum or what?
 
If necessary cut up the card to avoid using it again but you can only close the account when you have cleared the balance. Don't forget that you may still be liable for €30 stamp duty when you do this or in April. How much is outstanding? Could you switch to a 0% CC offer?
 
I have been looking into switching. i'm with BOI at the moment. the rate is quite high. Balance is about 7k i'm paying WELL over the minimum amount off it each month. I can't seem to find a good credit card that has a low apr after the initial 6 months and that does 0% transfer. the new AIB card has a rate of around 8% but the 8% is also on new balance transfers.
 
Can you not switch to a 0% introductory offer and clear the debt within the offer period thus rendering the normal interest rate irrelevant as long as you then always clear your bill on time or just don't use it? See the Financial Best Buys lists of CC offers and the www.itsyourmoney.ie CC cost survey. You should not really pay much attention to the CC minimum payment - this is just designed to keep you in debt. Just concentrate on minimising the ongoing costs and clearing the debt ASAP.
 
Its easy to say advise to switch to a 0% interest card, but when you apply for these cards the credit card companies will only give you a new card and limit according to what they think you can repay. In other words if you already have a big credit card bill, if the new credit card company doesn't think you can afford another card, then you wont get it. Its only when you get a new card that you can ask for the balance to be transferred! Also, if you do get approved for a card, the limit is set by the bank and may not match your o/s balance - so you have two cards!
 
musicfan said:
Its easy to say advise to switch to a 0% interest card
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Of course CC providers have their own application processes and not evbeybody will get the best deal but I and others just mention these offers as an option in cases like this. Obviously people who might benefit from them then have to inquire to see if they will get them! I don't think that too many people assume that these offers are some sort of magic panacea.
 
Hi Apple, If I were you I would apply for a Halifax Credit card and transfer your balance of €7k to it. You will pay nothing on it for six months (0%) and then your rate will revert to 9.5%. That should give you time to bring your balance down. You can get your existing credit limit from them if you supply current statements or less if you wish. Hope that helps. Good luck
 
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