Newbie looking for advice regarding credit card debt.

Chappyxx

Hi, I have some ideas about clearing my credit card debt but I am not really sure what is the best way to proceed.

I'm a single parent, living on income support and have a £7000 debt on Barclaycard (25.9% APR and no insurance) - I have no other debts or credit / store cards.
In September I will be starting a 3 year university degree course as a mature student and I have a good credit score.

I currently pay the minimum each month which is approx £155.
As of March, I will have an extra £100 pm to pay towards this.

Could someone advise me what they think would be the best and quickest way to clear this debt, taking into account my situation.

I am aware of 0% balance transfers on some credit cards.
Q: Would I be able to get another credit card as I'm on income support etc (or maybe as a student) and transfer the debt to these at 0% ?

I'm also aware that some student accounts offer 0% overdrafts. I will have two forms of income as a student, a NHS bursary and a student loan.
Q: Could I get two student accounts and two 0% overdrafts and pay the majority of the credit card debt off with these?

Any advice or any further suggestions would be appreciated

talana

As you say, there may be a few more options to consider once you're a student, but your priority NOW is to shift the debt to a lower APR.

- phone barclaycard and ask them if you can reduce the APR? You never know
- investigate personal loans, as the interest you pay will be much more reasonable
- investigate 0% credit cards

lilian1977

My only advice would be don't apply for too many 0% cards as a few credit searches in a small space of time can have a very negative impact on your credit score in future. Good luck.