Is a CC the best way?

Ladylairdy84

Hi, I have recently been considering getting a credit card to pay off lump sums of Direct Debits, catalogue payments and also my gas and electric bills and council tax.
Total adds to approximately £1000 if that. What I want to do is consolodate it all (pay it all off by CC or other) then just have one monthly payment coming out so as to try and save myself some money.
My credit is clear, I have never owned a credit card before and I have recently moved into a rented house so had to get a credit check done for that and it came back fine.
I get paid weekly and not very much which means I need to be saving at least £50 a week to be able to pay off my DD's etc plus my gas and electricity want £250 lump sum payment before I can set up a DD with them, which I don't have.
Basically I am looking for the best way in which to pay these without getting myself into debt etc

thanks in advance
Lairdy
x

CLAPTON

best way of not getting into debt is not to get into debt ..i.e. pay all bills in full when due

list each debt and say how much you pay each month and what the APR is

note that CC APR are usually about 25%

savings are essential (and not an otional extra).

why have you just moved into a rented flat?.. where were you before?

staffie1

Well once you transfer these commitments onto a credit card, you will be in debt. What I would do in your situation is look for a 0% balance transfer card that allows you to pay money into your current account (I think the current Virgin deal allows this) then set up a direct debit to cover the minimum monthly repayment (to avoid any late charges and to avoid losing the 0% deal) and top up where possible with a second payment each month to try and pay it off as quickly as possible. The current Virgin 0% deal lasts 16 mths so should be plenty of time to eat into the debt.

Obviously you will still need to pay your ongoing fuel and council tax commitments.

tracy24582_2

i dont think the credit checks they do for renting are as strict as those for credit cards and with you recently moving that will not make credit lenders very confident they like too see people have lived at the same address for a good while you would also need to be registered on the electoral role at your address as well, i think it is very unlikely you will get accepted for a mainsteam credit card as it would be your very first credit card

Ladylairdy84

re:clapton

Moved out of my parents house in october, work and finance meant I was able to do it then however council tax messed up and we now owe about £300 (which we think is too much anyways) and gas and electric haven't been checking our metres and we were just paying what we could afford to each month.(not the best plan I know) and we cant set up a DD until the £250 has been paid.
Catalogue account is being paid but is being cancelled out by the interest and I just want to get rid of the account all together.
All this is money that I dont have in my bank account to pay.


re:staffie1

the virgin card is one that I was looking at. if I get it, could I pay my council tax and G&E with it too? or would I just transfer the "amount" into my bank account to pay it off that way then pay DD to Virgin?

I've worked out that if I get a credit card and use £1000 then I can pay it off at £70 per month in 15 months, therefore not exeeding the 16 month 0%. which is actually reducing my monthly payments from what they are just now.
thanks again.

staffie1

Ladylairdy84 wrote: »

or would I just transfer the "amount" into my bank account to pay it off that way then pay DD to Virgin?

Yes, that's what I was getting at. But don't forget the ongoing DD's for your utilities and council tax as well. But I think the previous poster has a point about the credit checks - you might struggle to get a Virgin card. Only one way to find out and that's to try.

Ladylairdy84

yes, I would just use the credit card to pay the first lump sum then set up DD with G&E and council tax, but I cant set them up until the first lump sum has been paid unfortunately, but yes, I hadnt forgotten about the DD for utilities
Is there any other way of paying these without credit cards or loans etc?

Moggles_2

If this would be your first credit card, you have a limited credit history, so from the lender's perspective you're something of an unknown quantity. They are likely to see your lack of a payment history as too great a risk.

You probably need to be more concerned about actually getting a starter credit card, rather than looking at market-leading cards like Virgin. The bank that holds your main current account may be the best place to start.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

CLAPTON

-you need to draw up a proper budget
-probably best to move back home and pay off the debts and then build up some savings before moving out again.
-getting a CC (which is unlikely) only moves the debt around and they typically charge about 25% APR interest.

try this budget planner
http://www.makesenseofcards.com/soacalc.html

and post up the results here

Ladylairdy84

Just wanted to say thanks for all the replies, each has helped out greatly and I have decided not to get a credit card as at the moment I am currently off work on sick pay and not spending any money so my bank balance from the last couple of weeks has meant I can pay my half of the utilities bill this week and the council tax at another time, possibly next week. Also registered for online banking and a text service that lets me know how much money I have in the bank each week and to warn me when I go below a certain amount so I don't over spend anymore.
Although a CC would have been nice or even handy to have, I think i'd rather just be able to pay off those bills in a lump sum and not have to worry about paying anyone else back for it which in the long run is the most sensible thing to do.
Anyway, thanks again for all your help, its much appreciated. :T
Lairdy
x

Moggles_2

Ladylairdy84 wrote: »

Just wanted to say thanks for all the replies, each has helped out greatly and I have decided not to get a credit card as at the moment I am currently off work on sick pay and not spending any money ...

Here's wishing you a speedy recovery

Very best
M