Moving debt to become debt free quicker

Uschi_2

Hi all,

Just need to check something out with you as I'm sure someone out there has a much better grip on finances than I do at the mo

We've got a credit card with Co-operative Bank with current balance of £6122. Monthly interest is 0.622% (APR about 7.9% I think - we got it as part of a deal with our mortgage). Credit limit is £15,500.

We've also got other credit card debts amounting to £6534.85 plus an overdraft of around £1,400 - £1,500.

The bank have spoken to us about consolidating debts (dare I mention that phrase here?!) but am I right in thinking that a much better solution would be to move all our existing debts onto the Co-op credit card and try to set up a monthly payment of, say £250 to pay it back?

Would that work? All advice gratefully received.

P.

RAS

Hi

Please do not consolidate - it is just a way of making a profit for the bank and is a lot less flexible in terms of payment arrangments. it is reckoned that 85% of people who consolidate rack up more debt.

You do not say which bank has offered a consolidation loan?

You need to work out if Co-op will allow you to balance transfer across at that rate, and to work out how you got into this much debt so you can work out how you need to adjust your spending to sort out the debt.

I would suggest a trip to the snowball on www.whatsthecost.com, and that you post up your SOA on here.

And check out whether the Alliance and Leicester are still offering to match your OD, free for a year,, unless you already have a free OD.

Naomim

Hi

You might be able to move your other credit card debts to the low rate card but first check that balance transfers are at the same rate and if there is a balance transfer fee. I doubt you'd be able to transfer your overdraft though. Not many credit cards offer this I think it's called a super balance transfer :rolleyes: Do you know the interest rate on your OD? If it's feasible I would transfer high rate CC to the low rate one and pay min balance and chuck the extra at the OD to clear it off asap.

HTH

Naomi x