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£10,000 credit card debt. Best way forward.
Caphel
Posts: 3 Newbie
I am just looking for some advice on the best way forward. My wife has managed to run up £10,000 on credit cards in the last year or so. I was obviously not best pleased with this as during this time we were supposed to be working really hard at getting debt free.
I have for the moment balance transferred these over to two of my cards on a zero percent rate until November. She is now cancelling all of her cards so she will not much credit on record. Sadly she was late with a few payments and these are showing on her credit report.
When the zero percent rate falls off in November I was wondering what the best plan of action will be. I was thinking of getting her to apply for a loan or credit card around that time so we can try and keep the rate low. Any ideas?
I have for the moment balance transferred these over to two of my cards on a zero percent rate until November. She is now cancelling all of her cards so she will not much credit on record. Sadly she was late with a few payments and these are showing on her credit report.
When the zero percent rate falls off in November I was wondering what the best plan of action will be. I was thinking of getting her to apply for a loan or credit card around that time so we can try and keep the rate low. Any ideas?
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Comments
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Hey Caphel,
Is there a 3rd card that may offer you another 0% deal around November time? However you would need to keep this empty and under lock and key!
I know as soon as you clear your card, they're often keen to give you another 0% deal. Maybe something could be worked out where in November you can move between 3 cards keeping it at 0%. It all depends on how nice the CC companies are and what your credit rating is like.
Any thoughts on what you can pay to this each month? The more you pay off in these 6months at 0% the less interest you will have to pay when the 0% ends.
Personally, I would really avoid loans. You're just top loading all the interest, way more than you would pay if you worked at the cards. At the moment you are only committed to the minimum payments on the cards each month. Months when you are able to pay more you can do. With a loan you are stuck to a certain amount each month.
If you post up some more details, like interest rates expected after the 0% and expected monthly payments, we can see what a repayment schedule will look like.0 -
At the moment she can afford to pay £200 a month. She has two old Northern rock loans, one due to end in the next month and the other in November. That will free up another £70 to pay off debts.
Once the zero percent falls off I believe the cards will be between 16% and 18%. The two cards the balance is on are a Barclaycard and a Virgin money card. I have a third card that I use every now and again but pay off quickly, a Tesco credit card.
My credit rating is very good but I am not sure I will be allowed much more credit due to having £16,000 total credit available over three cards. Though £10,000 of that is now used up, they were clear beforehand. I was just about to cancel them all as I had paid off my debt. I also have a year left on an old tesco loan that is costing £260 a month.
Seeing as I am probably nearing the limit of available credit to me I think my wife will have to be the one to apply for new credit.0
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