What more can be done?

Staciep88

Hello,

As some as you may or may not know my OH got him self into debt a few years and we are in the process of sorting it out. The situation is now (as in sig) partly sorted out, by moving as much as we could to 2 0% BT cards.

The loan and the 2 0% cards he can handle but the Barclaycard one with about £3k on it is becoming a problem as the interest is so high! Minimum payment is £68 and the interest is £65, this month he has managed to pay £100 off of it but its going to take ages to pay it back.

Do you think its worth taking out another 0% card and shifting an amount to it (bearing in mind it would only be the maximum of £1k) or maybe take out another loan with a lower interest rate? I just want him to be debt free so we can get on with our lives and start a family

Any advice welcomed

milliemonster

Hi Stacie, I wouldn't advise taking out a loan as you would end up paying more interest in the long run

if most if the debt is now on 0% interest cards, can you pay the minimum off these in the meantime to throw all your spare cash at the Barclaycard to get that down?, by all means you can apply for another 0% card but I guess this depends on how many you have applied for recently as to whether you would be accepted again for another one?, can you give us a little more information on how much you have for debt repayments, can you BT any of the barclaycard debt onto the 0% cards?

Staciep88

Milliemonster,

Thank you.

Barclaycard - £2944.39 - 29.90% Credit Limit £3950

Virgin Money 0% - £856.82 - £70 p/month - Cleared in Sept09 Limit £1000
Mint Card 0% - £771.75 - £70 p/month - Cleared in Aug09 Limit £800
Barclay Loan - 1046.52 - £218.85 p/month - Cleared in Feb09

He is currently paying £70 on each of the 0% cards so that they are clear by the time the offers are up. So you think he should switch that to minimum payments and pay more off the big barclaycard one?

I would apply for another 0% card but the choices are limited.

Thanks again

milliemonster

I think in the meantime while he is on interest free with Virgin and Mint, yes just pay the minimum and throw all your spare cash at the Barclaycard, as your Barclay Loan is paid in Feb (will this be before the interest free period is up on your cards?) you will then have this additional sum to throw at the debt.

It's always better to pay off the highest interest cards first

ajaney

Milliemonster is giving you the best advice, keep up the minimums on the 0% & throw as much as you can at the higher interest one. You have a loan finishing soon which will give more money to pay off on the cards.

Make sure you keep up minimums on the 0% cards as many have a condition that if you miss a payment, the 0% stops.

SunderlandBlackCat

I agree with the posters who say attack the Barclaycard 1st.

I've had to make a few guesses here as I don't have all the detail needed but

Assuming he can find that £100 he paid off the Barclaycard every month then carrying on as you are will cost about £600 to £650 in interest & everything will be paid off in around 14 months.

If only the minimum is paid on the 0% cards & the rest is thrown at the Barclaycard it will still take about 14 months but you'll only pay somewhere between £425 & £475 in interest.

Even the worst case between those you'd save £125.

I'd suggest putting the details of the debts into the snowball calculator at www.whatsthecost.co.uk/snowball.aspx. Don't enter any interest for the Barclayloan as its already been "front loaded" on to the amount you owe. Just enter a 0 instead.

GeorgeUK

I agree - pay the minimum on the 0% cards - you can overpay later if possible, but you will be paying less overall if you attack the highest APR card.

Try comparing the details of your current payments in the snowball calculator against the recommended method.
https://www.whatsthecost.com/snowball.aspx

Can i just ask - why would the maximum be £1k?

Also, don't close down any of your cards once you clear them - you may be offerred an incentive to keep them open (0% for 6 months or low interest for life of balance).

Staciep88

Thanks to you all, Im just going to use the calculator to work it out and then I will post again! thanks xx

George: The reason I say that is as I had to take the credit cards out in my name and shift his debt to it - Im only 19 and dont get given big limits

Staciep88

SunderlandBlackCat - Thank you for your workings out they have really helped