Best way to clear £3,500 credit card debt

martinbsp

I have a £3,500 credit card debt with Egg at their standard interest rate.

My credit score at the moment is very low (checked via Zopa) and the last few applications for credit cards (to transfer) and an unsecured loan were declined.

I'm now thinking about my remaining options. I'm thinking of either

(a) Attempting to pay this off myself at £150 per month

(b) Taking out a secured loan

I'm very wary of option B, obviously because of the implications if things go pear shaped. Or am I being too careful? I have a good job and am young so am confident nothing will go wrong. BUT I haven't found a loan company that doesn't tie you in for 5+ years, a lot can happen over that time!

I can't think of any other ways to clear this last remaining debt, short of winning the lottery!

By the way, with option B would I have problems renewing my mortgage in 9 months time? Would a successful application for a secured loan have a negative effect on this?

lynzpower

Dont get a secured loan mate, theres really no need. PLus you will be paying extra interest on top.

Without sounding horrible, 3.5k is manageable, most of us are paying WAY more than that off!!
Stick your SOA up and lets see what we can do

ms_london

I would just pay it off at the £150 a month you mentioned (or more if you can afford it).

I wouldnt secure it on your property, plus you would be paying more interest on the amount in the long run - esp the longer it takes to pay it off.

Can you afford more than £150 a month? Mind you, that is a good chunk of money, but would be cleared sooner the more you throw at it.

Ms_London

Emmzi

How about option c)spend less money and pay off more or
d) second job and pay off more?OR
e) ebay whatever I bought on the card in the first place and pay off more?

Agree with lynz, post monthlyoutgoings andlet the DFW nerdsguide you on saving extra cash.

don't get a secured loan- fees alone might add around £10% to debt!!

THE_LONE_RANGER_4

pay off as you said no to other loans especially secured never secure a loan you could come a cropper, cut the card up pay more when you can

**purpleprincess**

lynzpower wrote:

Dont get a secured loan mate, theres really no need. PLus you will be paying extra interest on top.

Without sounding horrible, 3.5k is manageable, most of us are paying WAY more than that off!!
Stick your SOA up and lets see what we can do

Ditto!!! Post your SOA and see what we can do!!

martinbsp

Wow, straight forward consensus there then! The secured loan option is going in the bin.

Stupid question time - what's an SOA?

Thanks for all your advice, I'll post my SOA up as soon as I know what it is!

scheming_gypsy

Statement of Affairs..

ins and outs of your pocket.

Tashja

martinbsp wrote:

Stupid question time - what's an SOA?

Thanks for all your advice, I'll post my SOA up as soon as I know what it is!

It is a State of Affairs

You need to list EVERYTHING going out and coming in.

I think there is a template from Martin at the top ofthe page !!

T xx

CLAPTON

statement of affairs

http://forums.moneysavingexpert.com/showthread.html?t=107280&page=1

also add general information e.g. partner, children, value of property and mortgage any special circumstances

lynzpower

If you have a look at Southernscousers pinned/sticky - for newbies at the top of the page, this will help you do your SOA!

You did well to bin the consolidation loan option.... I certainly wish Id had the foresight to do that 5 years ago...