Need some advice please

jazzy1_2

Hi Guys,

I need som advice on something..

i have had a Credit Card for 2 years with a debt of £2600! plus £500 bill on my mobile contract for this month alone and £400 on other bills, like council tax (don't ask!!).. i'm young, under 25! and already i've screwed up. as i keep paying off the debt and then adding more to it etc etc which is really bad, i know. it's got to a point where its affecting me and i can't cope.. however.

a kind close friend has agreed to lend me the money £3800 @ 5% interest so i can pay off all my debt and stop the Credit card company getting my interest (its a typical nationwide classic card). i've defaulted many times and it just makes me feel worse. the worst thing is i can afford to pay it off but as i've moved out there are other costs which i didnt think about (stupid, i know). right so basically i havent managed my money or anything, but i came up with a good budget plan and with the help of my friend i can pay of my debts and sleep with ease (i know i will still owe my friend but the interest rate is very low compared to Nationwides CC and other loan companies, esp as my rating is soooo poor!)

OK the above was jsut to give you some background..

my questions are..

shall i pay off my CC in one big chunk of £2600?? or split it in 2-3 payments to them... which would be better for whatever rating i have left?

my friend said i can borrow £3800 @ 5% interest? - this is good right? it will be £200 a month repayments and he makes £400 out of it.


you might think i am stupid - and i agree totally, i'm really bad with money however i honestly have leart my lesson. "if you don't have hard cash for something you want to purchase, then don't buy it" - the CC is the worst thing to happen to me in my life so far.

excuse and spelling mistakes, i just want to get this message out and read the replies.

thank you so much for reading, have a nice evening

CLAPTON

Its a fantastic offer: I hope he never has cause to regret offering

Of course pay the money back asap.

why do you care about your credit rating... if you didn't have one you wouldn't be in this mess in the first place.
However, get a copy of your credit records and see that they say... if you have actually 'defaulted' on the cards then your credit rating is trashed for a few years anyway, but maybe you have only paid late rather than defaulted?

If you're going to pay your friend back at 200 per month at the 5% apr then that should only take about 20 months.

If you want to post up your budget I would suggest you go over to the debtfreewannabe board ... you may get some useful suggestions to help you create a realistic budget.

jdavtz

Pay back the credit card debt asap in one bulk payment as that way you'll be paying the credit card company their high interest payments for less time (it's calculated daily).

Set up a budget to pay your friend back as soon as is realistic, and probably with monthly payments. He/she has given you a fantastic deal and I'm sure you don't want him/her to have any regrets about it... it'll also help you plan and be disciplined for the next 70 (or however many) years of your life when you're not going to be in this financial mess (at least you've learnt early(ish)).

I wouldn't worry about the credit rating. Definitely don't pay to find out "your score".

Once you've finished paying back the loan form your friend, come back to the site and read up on building up a credit profile by buying everything on a credit card with a direct debit set up to automatically pay off the full balance every single money. Do that for a year or so, and you'll probably be able to get better deals with cashback etc. But that's all a bit in the future I think.

All the best.
Jonathan.

latecomer

Sounds like a very good friend. Pay off the full balance of the credit card and then cancel it to remove the temptation to spend on it again. Also I'd get your mobile sorted out, £500 for a month is just silly. Either get a better contract or stop talking so much

jazzy1_2

thanks for the replies guys,

i've already cut up the card and left it in a pile to see the mess of "virtual Money". i'm going to pay the card in 2 payments (as that is how my friend can give me the cash) and i'm going to repay him monthly via standing order.

thanks again:A