Please help me :(

Bendybops19

Ok, here we go...!

Please be very easy with me... and remember that i am pure rubbish when it comes to credit cards etc!!

My overdraft was £800, but i have just this minute had to have it extended to £1000 because i was near going over the limit

I get paid £12,000 so that works out to about £850 a month.
I know i need to go through my spending, and i am going to sort out my whole life in January once the christmas/birthday period is over for me.

Basically, i need advice on a credit card. I wont be using this for everyday use, but just to get me out of my overdraft because that is a never ending dilema - i get paid, it just covers my overdraft, then i have to go back into it just to live for the month

I have been approved on a HSBC credit card for 0% for 9 months. But i dont understand what that means!!! What does 0% mean ?? How do i pay the credit card back, is it direct debit? What happens after the 9months? How to i cancel it and find another?

Any help really appreciated!!

KTF

The 0% means that you wont pay any interest on balances on the card for 9 months. You *will* have to pay the minimum payment though.

After the 9 month period is up, the interest rate will go back to the lenders normal rate.

Depending on the lender you can pay it back automatically using Direct Debit (full, fixed or variable amount) or manually via online banking or over the counter.

Bendybops19

So i would use it for 9months, what if i have an outstanding payment on it? Is that what a balance trandfer it?? How do i do that?

black-saturn

Maybe you should post a list of your incomings and outgoings on the debt free wanabee section so we can see how you can get out of this mess and live within your means. Good luck!!

KTF

At the end of the 9 months you cna either pay it all off, move to the lenders standard rate or transfer the whole balance to another card with either another 0% offer or a lower rate than the lenders standard one.

Note that a lot of lenders are now introducing balance transfer fees so dont assume that you can move cards for 'free' anymore.

Penny-Pincher!!

Hi Hun!!

0% for 9 months is pretty good.

I have a skycard which is 0% till April 06. On this card 0% means I pay no interest on purchases or balance transfers. On balance transfers you will need to check if you have to pay a fee (most now are genrally 2%) mine is nothing so am quite lucky but Skycard now charge 2% :rolleyes: I did a BT to skycard from my Halifax One card and I pay a minimum payment each month by dd which is a % of the balance IYKWIM.

If you have been approved for a 0% cc then I would go for that one, saving anymore searches being done on your credit files. If you have a balance on the CC when its due to run off the 0% then I would start looking for another card aboout 4 weeks before you need it, then you can BT if needed.

I would suggest a credit limit not higher than your monthly salary. Using a credit card is easy and you really do need to be disciplined enough to say NO or weigh up what you really need or want. Remember that it does have to be paid back.

Looking at your post, Im just worried that your already struggling with paying back your overdraft but would like a credit card too. Hows about doing some overtime and clearing your overdraft, then going ahead with the credit card? Sorry I seem to be having a mummy moment, but have been in your position before and wouldnt want anyone else struggling. When we run up our debt OH & I were both on very high salaries and it was easy come easy go, but becoming disabled has really put things into perspective. I can no longer work and OH is my FT carer-please just be careful as we never do know whats round the corner or what may happen.

((((((((((HUGS HUN)))))))))))))

Penny-Pincher!!
xxx

rchddap1

If you want to make a longterm dent in your overdraft then you need to look carefully at your spending and try to cut some areas down. Putting £1000 on a 0% credit card for 9 months may appear to get you out of a hole now....but you need to work out exactly what you are going to do 9 months down the line to pay off the balance. Otherwise you'll be left with a £1000 credit card debt probably at a high interest rate.

My OH was in the same position (overdraft of £2000). However, through hard work, careful spending and saving he has reduced it substantially, and could even pay it off if he wanted.

If you want to stop living from month to month (which it appears you are doing) you need to look carefully at your finances and spending habits. Reduce outgoings or increase incomings and you'll be sorted in no time.

Slap it on a credit card....forget about it....don't make any further changes and you'll have bigger problems in 9 months time.

Sooler

Consider may be the Alliance and Leicester current account where you can get a £1000 overdraft, interest free for 12 months.
This will get rid of any interest and charges you may be currently incurring.
Then you'll have a straight £1000 to repay within 12 months.

grumbler

Minimum monthly payment for HSBC card is 3% of balance (min. £5). During first 9 months you can pay only minimum monthly payments; no interest is added. After 9 month you start paying about 14%-22% interest (see your paperwork) on new purchases and old balance unless you pay the whole balance every month. Best way to make monthly payments is Direct Debit - ask HSBC CS to set up DD on your current account. You can chose to make either mimimum payments (good for first 9 months) or full payments (recommended after 9 monts).

Bendybops19 wrote:

...i am going to sort out my whole life in January once the christmas/birthday period is over for me. Basically, i need advice on a credit card. I wont be using this for everyday use, but just to get me out of my overdraft because that is a never ending dilema - i get paid, it just covers my overdraft, then i have to go back into it just to live for the month

I have a feeling that the credit card will not help you. It has a credit limit - the same as overdraft limit - and you will just rack up another debt and will live near the limit again. Don't postpone sorting out your finances till January. Do it now. Otherwise your credit card will make things worse: in 9 months you will have higher debt than today and will pay more interest on this debt than you pay now.

Bendybops19

Thanks guys All great responses. All the advice i needed

I do need to look at my spending habits, and i know that its because i am paying everything for 2 people as my OH is at college and can only work part time.

I wish i could work over time,but my company doesnt allow it. So i know i need to look for an evening job, just so i can sort out this bloody mess!!

I was thinking that i could get a credit card to cover the overdraft, then live on my salary and pay back the credit card monthly. Hopefully, this would be paid off within the 9 months. How does that sound? I will sort out my spending habits within that time too. I know i have over spent this christmas, by quite a bit.

Bendybops19

grumbler - do u mean that i wont be able to pay more than 3% of my balance each month? I wont be able to choose how much i want to pay back?