Whats the best way to clear credit card debt?

kazzer

I have about €1000 debt on my card and im looking for the best way to clear it. Should I switch cards with a lower APR, or get a bank loan to pay it off? Is there any disadvantage to transfering the balance to another card? Whats the best card on the market at the moment?

All advice appreciated!

De Rebel

kazzer wrote:

Should I switch cards with a lower APR, or get a bank loan to pay it off?

Depends on how long it is going to take you to clear it. If you can clear it in six months or so, and if you are reasonably disciplined, then switch to a lower APR and just get your head down and clear it.

If it is going to take longer, better go with the bank loan. That also probably has an advantage that they will take the money from your account by direct debit and you will be less likely to defer the repayments.

Whatever you do, commit yourself to not getting back into the same hole again. That’s the most important part of the whole process. One of the best ways to do this is to gather up all of last year's statements and total the amount of the interest you paid in 2004. You will probably be horrified. And then just repeat that total to yourself every time you take the poisonous little card out of your wallet!!!

logonapr

Step 1- Using a scissors cut card in 2 so that debt doesn't get any worse.
Step 2 - Take out a credit union loan to clear debt

Nuttzz

surf the debt, look for cards with 6 months 0%APR and transfer to this card, then in 6 months time take another special offer and continue the cycle until its paid off (remember to cut the card when you receive it). My GF got herself in to serious CC debt and this is route we took, albeit we were in the UK at the time and it was easier to "surf" if you cant do that then get a credit union loan to clear it as the previous poster says

rabbitinlights

I have a CC with about €1700 owed on it (dont ask!) Its with MBNA and i want to move it to BOI (much easier to transfer money onto it), whats the best way? do BOI do any 0% transfer rates?

Sean

samo

I have an MBNA card and want to do exactly the same thing as very p****d off with MBNA - (I made the minimum payment this month 2 weeks early which I thought was €12 and was avtually €12.15 I then made a further payment of €700 5 days prior to the due date when I got paid online thru BOI which mysteriously they didnt receive and told me takes 7 working days for these payments to be processed - the €12 took 2 days to appear!)

So I got a late charge levy of €15.24 becuase I paid €12.00 rather than €12.15 even though my €700 was in thin air for 5 days ...not happy with MBNA at all. I checked into the BOI credit card and they do balance transfer of 2.9% ....so am clearing my balance and changing to BOI as soon as possible

kazzer

Well its good to know im not the only one in this position!

Thanks for that advice Nuttzz, I think this is the route i will take. Im really trying to find out what the best cards are to transfer your balance to, can anyone recommend one? I heard that Permanent TSB are bringing out a really good card soon, can anyone shed some light?

Thanks again.

rabbitinlights

MBNA are a nightmare to transfer money to, Ive had over €1000 stuck "in transfer" fro nearly 2 weeks before, i went nuts and wanted to know where my money was? I had bidded on an ebay item and could not pay for it in time because the money was "in transfer" I hear if you have a BOI A/C and CC transfer is instant? is that true?

Sean

spongebob

Its end of day for BoI and AIB

samo

end of day is alot better than 7 working 'MBNA' days!!!!

pete

rabbitinlights wrote:

I hear if you have a BOI A/C and CC transfer is instant? is that true?

No. When paying your BOI CC bill from your BOI account, your money disappears into BOI limbo for a couple of working days.

However, transfers between your BOI bank accounts happen instantly.

MartMax

De Rebel wrote:

Depends on how long it is going to take you to clear it. If you can clear it in six months or so, and if you are reasonably disciplined, then switch to a lower APR and just get your head down and clear it.

Will u not have to pay the govt duty on each different credit cards every year?.. so if you switch 1 card wth another 1 in one year... that will be 2 x €40 duty?... remember that the duty is accrued at the end of each year... well - that's only a thinking of mine...

sceptre

mart_max wrote:

Will u not have to pay the govt duty on each different credit cards every year?

Nope, changed in the last budget and not before time either.

kazzer

Quote:
Originally Posted by mart_max
Will u not have to pay the govt duty on each different credit cards every year?

Nope, changed in the last budget and not before time either

But is this effective as of now?

Tazz T

Nope.

And won't be until next year by the look of things.

vector

logonapr wrote:

Step 1- Using a scissors cut card in 2...

unless you use your card for online stuff in which case destroying the physical card is pointless.

(but nevertheless sound advice particularly if you are using the card for rip-off cash withdrawls)