Best way to tackle my debts?

Jan06

Need advice on the best way to tackle my credit cards debts.

I have :
Halifax One card 0% till Oct 06, balance of £1755 (limit £3100)

RBS Classic card 16.9% APR??, balance of £238 (limit £3100)

Egg card 15.9% APR IN credit £4.94 (limit of £3000)

Overdraft of £1800, which regularly gets up to this limit, on a barclays additions account.

Can you advise on the best way of shuffling the money round and what to throw the cash at first. I don't make any new spends on the cards. Currently have £80-£100 per month to throw at them.

Thanks in advance.

gingercordial

You might be better off asking this question over on the Debt Free Wannabe board, but I will do my best over here!

Concentrate on paying off the debt with the highest APR first, ie leave the Halifax card until last as it's not costing you anything for now. Not sure what your overdraft interest rate is so could be the o/d or the RBS card. Obviously you still need to make minimum payments to all of your debt to avoid charges.

If possible, could you balance transfer the debt from the RBS card to the Halifax card at 0%? Check for fees first. If you can't do this, or the fees for doing it are too high, try calling RBS and asking them nicely to reduce your interest rate, as this sometimes works. If this brings the rate below that of your overdraft, this means you can now concentrate on paying off the overdraft.

Once you've paid off/balance transferred the RBS card, cut up the card and call them up and ask for the account to be closed. That way you won't be tempted to spend on it again - as you say you don't intend to spend any more on cards.

You should also call up and close the Egg card for the same reason. They should send you a cheque for the £4.94 credit if you do so.

Good luck!