Credit Card Debt advice please...

madeinleeds

Hi All

For the first time ever, my CC debt is up to 2K. My current 0 per cent deal is coming to an end but I have a few savings in a mini cash isa - should I try find another card with 0% balance transfer and keep paying off at a rate of a hundred quid a month as I have been doing, or just pay the thing off from savings and try to keep a limit on my spending - which I do anyway, this debt has accumulated over the last 3 years and 3 cards!

Thanks

jonesMUFCforever

How much do you have?
You seem to be contradicting yourself by saying that your debt has reached £2k but yet you say that you are paying it off at £100 per month - which is it?

It looks like you have found this site at just the right time - I would pop over to the debt free wannabee board and make a statement of income and expenditure.

If you take action now you have a chance of getting out of debt.

To answer your question I would advice you to use most of your savings to pay off any card that incurs interest.

NickX

If you can transfer the debt to another 0% card with a reasonable Balance Transfer fee (less than 3%) then I would do this.

You should be making 5% plus in the ISA so you should be earning more on your savings this way.

If you cannot get another 0% deal, then I would use the ISA money to pay the debt off rather than pay an extortionate standard variable rate.

Good Luck.

madeinleeds

Thanks for the replies - sorry I confused the issue Jones, but I think Nick's answer saves me going through a long explination post. Looks like M&S are doing a good card at the mo.

Heading over to theother board you suggested now!

Thanks again!

jonesMUFCforever

Unless you have a fixed rate Cash ISA it is unlikely that all ISA providers will still pay over 5% in the near future.
There is another meeting of the Bank of England next week to discuss interest rates - I would expect another 1/2% ratecut.