Advice appreciated

lexlar

Hi
Trying to get back on track after being really stupid with credit cards over the past couple of years. Have two credit cards. One an egg visa card, maxed out at £2000 with an interest rate of 14.9%. The other a morgan stanley mastercard, maxed out at £2400, interest also 14.9%. I would like to consolidate/balance transfer these debts into one monthly payment which is as low as possible for the next 3-4 years. Any advice would be greatly appreciated.

Thanks and looking forward to your replies!

skintchick

Hi - consolidation isn't always the best thing.

Please post your incoming and outgoings, plus whether you think you could get any 0% cards - ie is your credit rating OK?

Then we can help

southernscouser

If your credit rating is OK then I'd suggest applying for a 0% blance transfer card. Have you missed any payments lately or have any defaults?

Why do you want to make the payments as low as possible? Are you stuggling to break even every month? The longer you take to pay your debts the more interest you will pay!

lexlar

Hi and thanks for your responses.

Just checked my credit rating and I've got a score of 960 and according to experian that's good. I've had a few late payments on the morgan stanley card but the egg has been fine. Considering cancelling payment protection and card protection on morgan and stanley card then just cutting the card up. Its costing me £40 a month for these protection plans, and quite often they are putting me over my credit limit, which in turn results in charges.
I'd be happy to be making payments of £100-£140 per month just to get these cards in order. Should I approach egg about a loan? BTW I'm earning about £21000 p/a but I've got a few outgoings in terms of mortgage and car loan etc.

Xbigman

Go to the credit card board and read up on 0% cards. Apply for one and balance transfer as much as you can. You might need a second card to get it all over but only apply for one at a time (otherwise you look desperate).

You say you are happy paying 100 to 140. This is not the best approach. Cut your outgoings to the minimum (yes dump all the insurance), make minimum payments on most debts but throw all your spare money at your highest APR debt. I'd start with your overdrafts.

The key is to budget and cut costs right down.
Regards



X

System

lexlar wrote:

Trying to get back on track after being really stupid with credit cards over the past couple of years.

Hi lexlar - Welcome to the forum

I'd also recommend you apply for 0% cards - the problem I found when I had about £5,000 in total Credit Card Debt was that, even if I got the card, the credit limit wasn't that great, so you can't always shift a whole balance onto a new card. Definately worth trying though.

You say above that you've been stupid with credit cards, but are trying to get back on track. Therefore, if you apply for extra cards and - after a bit of balance jiggling! - end up with a card or two at £Nil, avoid all temptation to spend with it. Be really disciplined and use any new cards for balance tfers only.

Otherwise, you'll get into the spiral of paying off minimum balances and lots of interest and the Credit Card companies will increase your credit card limits more and more until you get into real trouble.

Oh - and cancel that PPI - and use the money saved to attack the outstanding balances instead.

With a wage of £21k, you should be able to nail a £5k debt fairly well.

Best of luck
Dave