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  • FIRST POST
    • Fierybiscuits
    • By Fierybiscuits 4th Sep 17, 12:15 PM
    • 6Posts
    • 0Thanks
    Fierybiscuits
    Credit Card Confusion :question:
    • #1
    • 4th Sep 17, 12:15 PM
    Credit Card Confusion :question: 4th Sep 17 at 12:15 PM
    Hi everyone,

    Hoping for a bit of advice for someone still fairly ignorant when it comes to finances. I took out a Tesco credit card almost 2 years ago to try and improve my credit rating, and for a while I was sensible and only paid for my fuel on it, which I then religiously paid off each month. However, inevitably I started charging other things to it when I was struggling financially, and Ive since built up a debt of about 1100. When I took out the card it was 0% interest on purchases, but Ive been charged about 18 a month interest for the past 6 months or so.

    So, my question now is what should I do with this debt? Im now in a slightly better position to pay it off as my salary has increased, but Im loathed to keep paying the interest if I can avoid it. I have about 1400 saved in a HtB ISA, which I still pay 200 a month into, but I really dont want to dip into this as its both mine and my partners savings. I also pay 360 a month for a loan (PCD for postgrad studying) that Ill be paying off for another 2 and a half years. All that doesnt leave me a huge amount to manoeuvre, so I imagine it will still take me a good couple of years to pay off the credit card debt.

    Do I move it with a 0% balance transfer card? And if so, is it worth paying the fee for a longer 0% period, or should I stick with a no fee card? Then what do I do about any bigger purchases that I might need to cover so I can pay it off in smaller instalments? Do I take out a second card with a lower interest rate for purchases, or just keep a single point of debt? We wanted to start a joint savings account for holidays/essentials etc. but is there much point putting money into this while Im trying to pay off the debt? Am I better paying off the debt quicker so it doesnt accrue interest in the future? Or am I missing out on the interest of savings that way? Im honestly confused by the whole thing and in the meantime my credit rating is falling because I keep edging into my overdraft trying to sort my finances out. Really hope someone can advise. Many thanks.
Page 1
    • DCFC79
    • By DCFC79 4th Sep 17, 12:25 PM
    • 30,444 Posts
    • 19,242 Thanks
    DCFC79
    • #2
    • 4th Sep 17, 12:25 PM
    • #2
    • 4th Sep 17, 12:25 PM
    Well first of all don't panic about your credit rating falling since only you can see it, no harm in checking your credit file once a week or so.

    A transfer card might be an option for you.
    Last edited by DCFC79; 04-09-2017 at 12:41 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • SuperHan
    • By SuperHan 4th Sep 17, 3:32 PM
    • 1,994 Posts
    • 1,161 Thanks
    SuperHan
    • #3
    • 4th Sep 17, 3:32 PM
    • #3
    • 4th Sep 17, 3:32 PM
    Hi everyone,

    Hoping for a bit of advice for someone still fairly ignorant when it comes to finances. I took out a Tesco credit card almost 2 years ago to try and improve my credit rating, and for a while I was sensible and only paid for my fuel on it, which I then religiously paid off each month. However, inevitably I started charging other things to it when I was struggling financially, and Ive since built up a debt of about 1100. When I took out the card it was 0% interest on purchases, but Ive been charged about 18 a month interest for the past 6 months or so.
    Originally posted by Fierybiscuits

    While you may not have really meant it, it was not inevitable that you started charging other things to it. You could have avoided it.

    So, my question now is what should I do with this debt? Im now in a slightly better position to pay it off as my salary has increased, but Im loathed to keep paying the interest if I can avoid it. I have about 1400 saved in a HtB ISA, which I still pay 200 a month into, but I really dont want to dip into this as its both mine and my partners savings. I also pay 360 a month for a loan (PCD for postgrad studying) that Ill be paying off for another 2 and a half years. All that doesnt leave me a huge amount to manoeuvre, so I imagine it will still take me a good couple of years to pay off the credit card debt.

    You are getting 50 back for every 200 you put into your HtB ISA - this is more than the interest you will save by paying this 200 of your CC, so this is probably a more sensible long term arrangement. As I understand HtB is use-it-or-lose-it on a monthly basis too, so may not be sensible to skip payments. If you convert to a LISA (and I don't know much about the market for these) you would have a 4k pa allowance instead, which would mean you could catch up on payments later. But I'd probably keep paying into the HtB ISA if I were you.

    Do I move it with a 0% balance transfer card? And if so, is it worth paying the fee for a longer 0% period, or should I stick with a no fee card? Then what do I do about any bigger purchases that I might need to cover so I can pay it off in smaller instalments? Do I take out a second card with a lower interest rate for purchases, or just keep a single point of debt? We wanted to start a joint savings account for holidays/essentials etc. but is there much point putting money into this while Im trying to pay off the debt? Am I better paying off the debt quicker so it doesnt accrue interest in the future? Or am I missing out on the interest of savings that way? Im honestly confused by the whole thing and in the meantime my credit rating is falling because I keep edging into my overdraft trying to sort my finances out. Really hope someone can advise. Many thanks.

    You may struggle to get a 0% card on the basis of affordability - but defintiely try to get a 0% balance transfer. This will buy you some time with the interest. If you apply and don't get it, you haven't really lost anything.


    There's no point in saving unless you can earn more interest than your credit card costs you. Saving for holidays doesn't sound sensible while you still have debt though - pay off what you have already had the benefit of before having the benefit of something new, or you might find your debt levels spiralling.


    You can also post a SoA on the Debt Free Wannabe board - they will help identify other areas of spending you can cut down on so that you have more to throw at the credit card.


    In the grand scheme of things, 1,100 of debt is quite low. Without sounding righteous, the best thing to do is throw every spare penny you have at it even if that means cutting out all "fun" spending, keep the interest as low as possible.
    • Dobbibill
    • By Dobbibill 4th Sep 17, 6:20 PM
    • 2,551 Posts
    • 3,641 Thanks
    Dobbibill
    • #4
    • 4th Sep 17, 6:20 PM
    • #4
    • 4th Sep 17, 6:20 PM
    However, inevitably I started charging other things to it when I was struggling financially, and Ive since built up a debt of about 1100. When I took out the card it was 0% interest on purchases, but Ive been charged about 18 a month interest for the past 6 months or so.
    Originally posted by Fierybiscuits
    The 0% on purchases would have been for a set period of time. eg 6 months etc.

    What caused the financial difficulties?
    Is it likely to happen again?

    So, my question now is what should I do with this debt? Im now in a slightly better position to pay it off as my salary has increased, but Im loathed to keep paying the interest if I can avoid it. I have about 1400 saved in a HtB ISA, which I still pay 200 a month into, but I really dont want to dip into this as its both mine and my partners savings. I also pay 360 a month for a loan (PCD for postgrad studying) that Ill be paying off for another 2 and a half years. All that doesnt leave me a huge amount to manoeuvre, so I imagine it will still take me a good couple of years to pay off the credit card debt.
    SuperHan makes some good points about the long term gain of keep the HTB ISA.
    If your partner is a FTB - he can have one of his own.

    You need to utilise your salary increase to pay off as much as possible and as soon as possible. I would be more loathed to pay more interest than necessary.

    Do I move it with a 0% balance transfer card? And if so, is it worth paying the fee for a longer 0% period, or should I stick with a no fee card?
    Yes - depends if you can get one without a fee.

    Then what do I do about any bigger purchases that I might need to cover so I can pay it off in smaller instalments?
    Save for future purchases - if you rely on credit you will be going around in circles for years to come.

    We wanted to start a joint savings account for holidays/essentials etc. but is there much point putting money into this while Im trying to pay off the debt?
    Don't start saving for luxuries until you've cleared the debt.

    Am I better paying off the debt quicker so it doesnt accrue interest in the future?
    Yes - within the 0% period if you opt for and are accepted for a BT card.

    Im honestly confused by the whole thing and in the meantime my credit rating is falling because I keep edging into my overdraft trying to sort my finances out.
    You are not accessed by lenders based on your credit rating. They will score you in line with their lending criteria based on the data held on your CR...not your credit score!

    Complete a SOA - budget accurately - if you are going into your OD then it's only going to be a matter of time before a curve ball throws you off balance.
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    • 1kevfp
    • By 1kevfp 5th Sep 17, 5:04 PM
    • 39 Posts
    • 7 Thanks
    1kevfp
    • #5
    • 5th Sep 17, 5:04 PM
    fuel giftcard ?
    • #5
    • 5th Sep 17, 5:04 PM
    Last week I got a "congrats" email on my "successful application" for myfuelgiftcard.co.uk, which I know nothing about, and low and behold my fuel gift visa card arrived today in the post .

    I tried to ring their customer service extension line ( dialling 141 first ) and each time a recorded message says " please leave your name and number etc " oh yeah sure I will :-(

    The card programme manager is Sodexo Motivation Solutions UK

    Anyone any info if its a scam ( not that I need or want a fuel card )
    • zx81
    • By zx81 5th Sep 17, 5:19 PM
    • 14,410 Posts
    • 15,207 Thanks
    zx81
    • #6
    • 5th Sep 17, 5:19 PM
    • #6
    • 5th Sep 17, 5:19 PM
    This thread is about balance transfer - best to start your own.

    (But it won't be a scam.)
    • Fierybiscuits
    • By Fierybiscuits 8th Oct 17, 7:45 PM
    • 6 Posts
    • 0 Thanks
    Fierybiscuits
    • #7
    • 8th Oct 17, 7:45 PM
    • #7
    • 8th Oct 17, 7:45 PM
    While you may not have really meant it, it was not inevitable that you started charging other things to it. You could have avoided it.
    Originally posted by SuperHan
    I don't recall asking for a judgement on my spending, merely advice on how best to rectify what debt I've accrued. While maybe not "inevitable," my financial situation at the time meant I spent practically every penny I earned on fuel to get to work, paying off my PCD loan, and bills. Therefore, I charged any larger purchases to my credit card, but in the knowledge that I should have the means to pay the debt off within the next couple of years. As it happens, I spent over 10 years at university studying towards my career and living off not very much at all, but thankfully I had the guarantee of a salary increase from my workplace on final qualification.
    I have since qualified and gained the pay rise, and just wanted advice on how best to pay off what I've spent, in the quickest/cheapest way possible, and hopefully without harming my ability to save. I'm therefore thankful for your subsequent advice, but really could have done without this rather unnecessary comment.
    • chattychappy
    • By chattychappy 8th Oct 17, 8:04 PM
    • 6,446 Posts
    • 3,399 Thanks
    chattychappy
    • #8
    • 8th Oct 17, 8:04 PM
    • #8
    • 8th Oct 17, 8:04 PM
    I don't recall asking for a judgement on my spending, merely advice on how best to rectify what debt I've accrued.
    ....
    I'm therefore thankful for your subsequent advice, but really could have done without this rather unnecessary comment.
    Originally posted by Fierybiscuits
    Wow! Whether you recall it or not, or you deem it necessary or not, that's tough luck, I'm afraid. If you post in a public forum, you will sometimes get comments beyond the answer you were seeking. People fool themselves all the time when it comes to debt and sometimes don't like things pointed out to them. Perhaps in this case the comments don't apply to you, but they might apply to others who come along and read later.

    Superhan must have spent some time on that post. I thought it was very well measured in its response to what you wrote.
    • bigadaj
    • By bigadaj 9th Oct 17, 1:43 AM
    • 10,803 Posts
    • 7,100 Thanks
    bigadaj
    • #9
    • 9th Oct 17, 1:43 AM
    • #9
    • 9th Oct 17, 1:43 AM
    I don't recall asking for a judgement on my spending, merely advice on how best to rectify what debt I've accrued. While maybe not "inevitable," my financial situation at the time meant I spent practically every penny I earned on fuel to get to work, paying off my PCD loan, and bills. Therefore, I charged any larger purchases to my credit card, but in the knowledge that I should have the means to pay the debt off within the next couple of years. As it happens, I spent over 10 years at university studying towards my career and living off not very much at all, but thankfully I had the guarantee of a salary increase from my workplace on final qualification.
    I have since qualified and gained the pay rise, and just wanted advice on how best to pay off what I've spent, in the quickest/cheapest way possible, and hopefully without harming my ability to save. I'm therefore thankful for your subsequent advice, but really could have done without this rather unnecessary comment.
    Originally posted by Fierybiscuits
    This would suggest that you didn't plan the financial side of things very well then.

    What career needs ten years of study at university, much of this was presumably part time, have you financially modelled your longer term prospects?

    The problem with your criticism of the previous post is that whilst you say you've studied and planned, the first part of the OP suggests a slow slide into debt with little forethought which I believe is what superhan is driving it, though if it is really him posting then some of the post could be a drug induced haze!
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