Debt Advice - Can you Help?!

traveller01_2

Hello there,

I am new to these forums and, having had a look around, I think this is the best place for me to post my query. I would be most grateful if someone could give some advise on the following:

My fiance and I are 25. She works full-time in a professional post, earning around £1,300.00 net a month. I am studying at present and working part-time, earning around £900.00 net a month between October and May. I don't get paid June, July, August or September.

We have a personal loan with Alliance and Leicester of £1750, which is fixed for twelve months. There are ten months to go and the payments are circa £160 a month. We have a credit card with Halifax, with an outstanding balance of around £250.00. We have an overdraft on our current account (0.25% a month I think), which stands at around £1750. The total debt we're looking to clear is, therefore, around £3,750.00.

We have a fixed mortgage and our regular outgoing each month for repayments/insurance/etc. is £600.00.

Each month we make our payments, and just end up further and further into our overdraft, which just increases each month. This situation will only get worse whilst I'm not paid over the summer. We don't spend gratitously, getting by on the basics with only the occasional meal out or trip to the cinema (and I mean occasional). We don't seem to be able to cut down anymore.

I was wondering whether or not it's possible to clear our exisiting debts with a 0% balance transfer on a new credit card, which we wouldn't used for spending or anything. Is that feasible? We could then save each month and pay the balance at the end of the term (Virgin have one for sixteen months).

What do you think? I'd be very grateful for any advice. Thank you so much in advance.

Numpty_Monkey

:hello:Hi and welcome along,

I'm not that good with credit cards ideas, but If you can get a BT to a 0% card yes go for it
But NEVER spend or use that card for anything:cool:

To deal with the overdraft and drop in earnings I'd suggest you do an SOA use this link
http://www.makesenseofcards.com/soacalc.html
If you post it on here the clever and good folks will spot areas to make a few savings:A

dancingfairy

Hi. That would only work if you really didn't spend on the card at all. You really need to go through your budget carefully and see where the overspending is occurring as otherwise with another card and temptation you could end up in a worse mess.
Also I'm not 100% sure on this but there may be a) penalties for paying your loan off early (which you would be doing by transferring to a credit card)
b) charges for doing a balance transfer ie 3% of the balance etc -
c) don't you still have to make minimum repayments on the amount? don't forget to factor this in if necessary.

It may be worth considering when you have considered all the penalties and charges but only if this is the root cause of the overspending and you are 100% sure you will be able to live within you budget - otherwise you will need to consider other options as well.
df

AliBallyBee

Hey, I don't know your circumstances but if you are a student are you not able to get another job for over the summer holidays? You mention you don't get paid then so I assume you don't work. I used to work full time every summer while I was at uni and it was a great way to get some extra savings.

If you post an SOA then we can have a look and see where things could be cut back. :-)

traveller01_2

Hello,

Thank you for the kind responses. To be honest, I was really interested in finding out whether or not it was indeed possible to pay an overdraft with a credit card. If so, how? It's not like a balance transfer, which is what the cards offer 0% on, is it?

With many thanks.

Tixy

To pay an overdraft with a credit card you need a super balance transfer card - these allow a 'transfer' to be made to your current account. List here http://www.stoozing.com/sbt.php