Credit card advice

bob5

I have got myself in a serius sticky situation and need advice on what i should do. can anyone help?

Basically I have a debt of 25,000 on credit cards.
1 card is 4,000 at 0% interest til next year so i will keep that
i dont spend on it at all.
2nd card 5,800 paying approx 120.00 per month
3rd card 9, 800 paying approx 120.00 per month
4th card 5,000 paying approx 100.00 per month

would it be better to get a loan to pay this off?
I cant seem to get a new credit card with 0% transfer balance anymore
Or should i stick iwth what i have and pay as much as i can?

NickX

bob5 wrote: »

I cant seem to get a new credit card with 0% transfer balance anymore
Or should i stick iwth what i have and pay as much as i can?

Find out what the APRs are on the cards where you are paying interest.

Then pay as much as you can into the one with the highest APR. Pay the Minimum on all the rest.

That way you are paying off the most expensive debt more quickly and work your way down to the less expensive debt.

If you have any available credit on the 0% card, get as much of the highest rate APR debt transferred over to that again to reduce the amount you owe at an expensive rate.

Finally just speak to each provider in turn and ask them if they can reduce the APR, you never know a simple phone call might result in you paying less interest.

JimmyTheWig

Agree with NickX, but would like to add a couple of things...

If there is not much difference in the APRs then you might want to concentrate on the smaller debts first. Once you have cleared the debt on a card completely you could call them and ask them for a low (preferably free!) interest rate for a balance transfer. With a zero balance for an existing customer they may well do this. Then transfer the highest rate card onto this new deal.

The monthly repayments look ever so low compared with the outstanding balance (especially the third card). Are these the minimum payments? Do you realise how long this will take you to pay off the debt? Do you realise how much interest you will be paying in order to clear these debts at this rate?
Anything you can do to pay them off quicker will be of real, real benefit to you. Have you used the rest of this site to help increase your income and decrease your outgoings?

bob5

Hi Thankyou to you both for your information.

I just find this all very mind boggling and never wish i got into this situation.

if i have any more questions i will post here. thanku again,