Credit Card Balance....

D

Dubsfan

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I have a Credit Card with a large Bank in Ireland. This card has been maxed out (Euro 2,500) for over a year.
I have a Standing order set up to try and clear the balance but the interest is killing me. I am generally debt free.
The balance never drops below one or two hundred euros, constantly leaving me with a balance of E 2,000+.
I have heard of people (with more financial savvy than me) who constantly switch there Credit Card balance from one Internet bank to another (depending on which deals are on offer at the time) so as to avail of little (or none) interest rates. Is this wise?
Is there anybody out there who can give me a step by step approach to getting rid of this ball and chain!!!!

P.S I realize that this question has probably been posted on AAM many times, but I am new to this site and haven’t found all topics and answers yet (plus I want to see if anybody answers my question)! Thanks.
 
Credit card 'rate tarting' is more popular in the UK than here, largely because of the €40 stamp duty charge here - This will add to your costs each time you open a new account (though there is a change due soon which will stop you being hit for the charge twice as a result of switching to a different bank).

The mechanics of doing this are fairly straightforward - just contact any of the banks offering 0% interest on balance transfers about getting a new card and transferring your balance. However, this will not solve your problem. It may give you a bit of breathing space, but the debt will still be there. You will also need to look at whatever fundamental lifestyle changes are required to allow you to repay the debt within the not too distant future.
 
Every standing order payment made merely goes to service the interest on the card balance which is why you never see the balance drop. If you have the funds to pay the balance immedietly in savings, etc, then do so, making sure you cut up the card and close the account. I`m not an advocate of borrowing from peter to pay paul, but think about a personal loan to clear the balance (again making sure that you take a scissors to the card, or you will end up in a worse situation than before!)
In lieu of a credit card, why not use laser? Accepted across the country and you spend the money you have, not money that you will have to pay interest on.
 
I would definitely try and get a low interest loan and pay off the credit card balance in one go. I did this myself about 6 years ago when I owed approx 2,500 Irish pounds. It's the best way to do it and you will save yourself a lot of interest.
 
Minimum

Standing Orders for Credit Cards usually take just the minimum required payment. If you only pay the minimum you will almost certainly never clear the balance.

As your balance reduced so does the minimum payment.

What you need to do is pay as much as possible over and above the minimum payment.

-Rd
 
credit car apr

Hi Dubsfan,

I have had an AIB credit card for last number of years and was recently offered an interest rate of 2.9% for six months after i threatened to move to a competitor!

2.9 % is much better than paying 18%! All it takes is a phone call!

Good luck
 
Thanks folks!!

I think a phone call, followed by a low interest loan, followed by a scissors is the only answer!!

Thanks again...Dubsfan.
 
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