Clear debts with savings?

shadydaz

GhostHunter wrote: »

Hi

Sorry for the delay in coming back, one thing led to another then I went away for a lovely weekend to see parents, brother neice and nephew and have a break from worrying.

Anyway am back now and have found out the APR's etc:

If I repaid the debt to all 4 cards to bring them all back into their limit it breaks down like this:

Nationwide £211.
Capital One £155.
Skycard £78.
Aqua £204.

So in total that's £648. to 'stay out of trouble'.



Capital One APR 26.730% (min payment 3% or £5)



Aqua APR 29.9% (min payment 3% or £5)

quote]

Pay these two off first. Dont worry about your other Purchase jobbies, they will take care of themselves.

paying these two off will enable you to keep up with the payments on the other 2 and maybe add a little extra every month??

Good luck.

GhostHunter_3

shadydaz wrote: »

GhostHunter wrote: »

Hi

Sorry for the delay in coming back, one thing led to another then I went away for a lovely weekend to see parents, brother neice and nephew and have a break from worrying.

Anyway am back now and have found out the APR's etc:

If I repaid the debt to all 4 cards to bring them all back into their limit it breaks down like this:

Nationwide £211.
Capital One £155.
Skycard £78.
Aqua £204.

So in total that's £648. to 'stay out of trouble'.



Capital One APR 26.730% (min payment 3% or £5)



Aqua APR 29.9% (min payment 3% or £5)

quote]

Pay these two off first. Dont worry about your other Purchase jobbies, they will take care of themselves.

paying these two off will enable you to keep up with the payments on the other 2 and maybe add a little extra every month??

Good luck.

Hi thanks for the reply

When you say 'pay them off' do you mean as in pay to clear the outstanding ballance in full OR just to get me back into my 'limit' and out of trouble?

Sorry just me being a bit confused, got a foggy head :rolleyes:

Thanks

RAS

Nicked this off your SOA elsewhere, although I suspect from your comments above that the debt has increased since then?

Capital One limit 800 ballance 805 arears 90 APR 26.73%
Nationwide limit 1,500 ballance 1,630 arears 160 APR 17.9%
Skycard limit 690 ballance 630 Arears 40 APR 18.32%
Aqua limit 1,100 ballance 1160 Arears 160 APR 29.95%

I would suggest that you completely clear the Aqua card and get the other three back into balance.

With debts attracting that sort of APR, paying the minimum will mean that the debt increases over time. I think it was rog2 who commented that paying the minimum on one card lead him to increase his debt by £1000 over a year.

Then you need to start attacking the Cap 1 card as much as you can. Do you have any late payment charges etc on the CCs that you can reclaim? Or any PPI anywhere that is not paying up?

SerenaGoode

I hate to say this, but I think you're in a bit of denial about the situation here.

I understand that paying off loans feels better than paying off interest on cards, but your credit record is damaged by not paying either. Also, you want to use your savings 'wisely'. I can understand that, but at the minute you are having money bled out of you by the credit card people, and that won't stop till you deal with them - you really have to find a way to deal with them rather than just letting them increase. And one chance you have of freezing interest is to do the DMP thing and do it seriously. 10 years seems a long time, but your circumstances may change as you go along, allowing you to pay more off or make final offers.

I don't know your full situation, but if you are at a point where you can't make the cc payments, I'm not sure that keeping up the loan payments and allowing the card debts to increase is actually helping. Apologies if I have missed the full story though.

GhostHunter_3

RAS wrote: »

Nicked this off your SOA elsewhere, although I suspect from your comments above that the debt has increased since then?



I would suggest that you completely clear the Aqua card and get the other three back into balance.

With debts attracting that sort of APR, paying the minimum will mean that the debt increases over time. I think it was rog2 who commented that paying the minimum on one card lead him to increase his debt by £1000 over a year.

Then you need to start attacking the Cap 1 card as much as you can. Do you have any late payment charges etc on the CCs that you can reclaim? Or any PPI anywhere that is not paying up?

Hi Yes your right I do have both PPI mis sold claims and CC charges to claim back so although I am using up my 'emergency fund / rainy day' savings I will get something back once claims settled so not everything will be lost. Yet cards will be hopefully near enough cleared and me debt free :rotfl:

Thanks for replies so far everybody