£2.5k on HSBC - Charging us 24.9% - Help

Tyders

Hi all,

Been using this site for a long time and now I need some good advice from you all.

Situation - Got a baby due in 4 months and just moved into a new house. Girlfriend has moved in and we are trying to get our finances in order so that when the baby comes our payments on loans etc are managable. I have sorted everything out and all bills etc can be covered and the mortgage etc.

Now here is the problem - My Girlfriend has a £2,300 balance on a HSBC Mastercard that she no longer uses. Today she is being charged 23.9% APR with it rising to 25.9% next month. Per month she is being charged,

£12.19 at 2.073% per month on (Cash)
£29.18 at 1.809% per month on (Purchases)

It equates to £41.37 and the card has a minimum payment each month of £57.73. That would mean £16.36 is going against the actual cost each month thus it would take nearly 15 years to clear!

What would you all suggest I/We do to deal with the situation? Financially we can afford the £50 per month but I hate the fact its 80% interest.

Thanks in advance

NickX

I would advise getting a new card with a 0% promotion and transferring the debt over to that. Should save you a lot in interest payments.

Good Luck.