A Quick Update

SuiDreams

Wow well done you

newmoneysaver_2

Congratulations southernscouser, it's good to see that you are tackling these debt head-on. However I have one question:

It seems a whole chunck on money has gone from your tesco c/c and not so much off your capital one (the apr isn’t listed so I presume this is the usual 17%+) Would it not be better to clear the Capital One card as the tesco card is 7.9 for life of balance?

Forgive me if I am wrong, I just wanted to make sure you are working on higher interest debts first.

ms_london

Well done SS, you are doing really well!!!

Keep up the good work.

xx

southernscouser

bham-dave wrote:

Egg (Limit - £1,500) = £288.50 (Reduce to £400 or £500)
Capital One (Limit - £10,300) = £7,692.30 (Reduce to £7,800)
Morgan Stanley (Limit - £2,700)5.9% for life = £2,409.34 (Reduce to £2,550)
Tesco (Limit - £5,600) 7.9% for life = £560.19 (Reduce to £900 or £1,000)

That could knock another £8000 off your available credit with the credit reference agencies, make you look even better to potential lenders.

You could even repeat the process each month, and if you keep a certain "buffer" amount you should be ok.

Cheers Dave. I was going to do that with the Tesco card.

The Egg card was £8,600 until last week when I changed it to £1,500. Kind of left it at that because of future anniversary deals (not sure why ). Could lower it still and always ask for an increase when it comes round again though I suppose!

southernscouser

newmoneysaver wrote:

Congratulations southernscouser, it's good to see that you are tackling these debt head-on. However I have one question:

It seems a whole chunck on money has gone from your tesco c/c and not so much off your capital one (the apr isn’t listed so I presume this is the usual 17%+) Would it not be better to clear the Capital One card as the tesco card is 7.9 for life of balance?

Forgive me if I am wrong, I just wanted to make sure you are working on higher interest debts first.

Hi newmoneysaver,

I transferred the Tesco balance on to my Amazon 0% card because the Capital One card is 3.9% for life (I think). The problem was though that I stupidly transferred more after the introductory period but I think it still works out cheaper than the Tesco card!

System

southernscouser wrote:

Cheers Dave. I was going to do that with the Tesco card.

The Egg card was £8,600 until last week when I changed it to £1,500. Kind of left it at that because of future anniversary deals (not sure why ). Could lower it still and always ask for an increase when it comes round again though I suppose!

I've never had an Egg card with it's mystical anniversary deals, so can't help there!

Just to clarify - I presume your intention is to ultimately get rid of all these credit card debts, but utilise every last 0% deal/special offer APR along the way?

Was just wondering whether phoning a company and reducing your credit limit may result in them offering you an even better deal as they'll be losing out on all that interest they get off you? May be worth trying - you never know!

SuiDreams

Thanks for this you've just reminded me that I have to ring up and reduce the limit on my Virgin Credit card as they uped the limit without telling me.

southernscouser

bham-dave wrote:

I've never had an Egg card with it's mystical anniversary deals, so can't help there!

Just to clarify - I presume your intention is to ultimately get rid of all these credit card debts, but utilise every last 0% deal/special offer APR along the way?

Was just wondering whether phoning a company and reducing your credit limit may result in them offering you an even better deal as they'll be losing out on all that interest they get off you? May be worth trying - you never know!

Yeah thats a good point. Will give them a call later "being such a loyal customer" and all that! :rotfl:

southernscouser

Have just phoned Tesco. Was gonna transfer my Egg balance over to them but they couldn't offer me anything so reduced my limit to £1,000.

Also phoned Capital One and reduced limit to £8,000.

Revised figures below.

Debt at highest:
22nd September 2005

Egg (Limit - £8,600) = £2,933.02
Capital One (Limit - £10,300) = £8,093.97
Morgan Stanley (Limit - £2,700)5.9% for life = £2,484.27
Tesco (Limit - £4,100) 7.9% for life = £2,899.54
Tesco Loan 6.9% = £22,294.20

Total: £38,705.00

Debt now:
13th November 2005

Egg (Limit - £1,500) = £288.50
Capital One (Limit - £8,000) = £7,692.30
Morgan Stanley (Limit - £2,700)5.9% for life = £2,409.34
Tesco (Limit - £1,000) 7.9% for life = £560.19
Amazon (Limit £5,300) 0% - 21st March ‘06 - 12.9% after = £4,674.60
Tesco Loan 6.9% = £21,551.06

Total: = £37,175.99