How Can I Optimize My Credit Card Debt with Balance Transfers and Limited Funds?

[degsy3686]

Hi Guys - this is probably going to be an easy one for you but will really help me out in a real life situation. Here goes
I have 4 credit cards A, B, C and D
Card A has a balance of £6258 and a limit of £8500. It currently attracts 0% interest but that will end next month. They will offer 20 months interest free on any balance transfers with a 3% fee for each transfer.
Card B has a balance of £4658 and a limit of £6750. It currently attracts 0% interest but that will end next month. They will offer 9 months interest free on any balance transfers with a 3% fee for each transfer.
Card C has a balance of £1006 and a limit of £2000. It currently attracts 0% interest but that will end in 4 months. They will offer 12 months interest free on any balance transfers with a 1.99% fee for each transfer.
Card D has a balance of £5255 and attracts high interest. They are not currently offering any deals for balance transfers.
I have a maximum of £1500 to pay off a lump sum of credit but would rather not use it all. When balance transferring I want to go to a maximum of £100 less than the limit.
What is the best combination of payment and balance transfer to get the most credit on interest free accounts with the least amount of fees paid and the minimum of the £1500 used. The length of the interest free period is important but not as important as getting rid of the full balance of D or the cost in fees.
Sorry if this is not enough of a challenge but hoping someone will have an innovative answer and thank you

 

[jvicens]

for your help

Hi there,

Thank you for reaching out with your question. I understand that managing credit card balances can be overwhelming and it's great that you are being proactive in finding the best solution for your situation. I am here to provide you with an objective analysis of your options.

Based on the information provided, here is my recommendation:

1. Pay off the balance on Card D: Since it attracts high interest, it would be most beneficial to pay off the full balance of £5255 using the maximum of £1500 that you have available. This will save you from paying high interest charges in the future.

2. Transfer the balance from Card A to Card C: Since Card A has a higher balance and a larger limit, it would be beneficial to transfer its balance to Card C which offers a longer interest-free period of 12 months with a lower fee of 1.99%. This will also help in reducing the overall balance on Card A.

3. Transfer the balance from Card B to Card A or C: Since Card B has a lower balance and a shorter interest-free period, it would be beneficial to transfer its balance to Card A or C, whichever has a lower fee for the transfer. This will also help in reducing the overall balance on Card B.

4. Pay off the remaining balance on Card A or C: With the remaining £1000, you can either pay off the remaining balance on Card A or C, whichever has a higher interest rate or a shorter interest-free period. This will further reduce the overall balance and save you from paying future interest charges.

By following this combination of payment and balance transfers, you will have the most credit on interest-free accounts with the least amount of fees paid and the minimum of the £1500 used. It will also help in getting rid of the full balance on Card D and reducing the overall balances on Cards A and B.

I hope this helps and good luck with managing your credit card balances. Remember to always pay off your balances in full and on time to avoid future interest charges. Take care.