Can anybody help me pls re 10k debt

seh_82

Hello all,

I am currently in a bit of a pickle with regards to the amount of debt I am in, I am 26 and currently take home between 1400-2000 (commission based). I am about 10k in debt if not more with overdrafts, currently I have 4 0 percent interest cards running and pay about 4-500 pound a month, but I also have a barclaycard bill of about 2k which I am struggling to pay off. It is starting to get to me paying this much a month even though I appreciate its down to my own doing. I live with my partner who has a mortgage on the prop we live in and my only outgoings is 400 towards the rent and bills and the monthly amounts im paying off the various cards. The reason I am asking for advice is because I am considering getting a loan and paying them all off at once. Maybe get a loan for 3 years and make monthly payments of about 300 a month, am I doing the right thing or should I just carry on with the credit card payments.

Any advice would be greatly appreciated

SEH

matthew74

You are doing the right thing :beer: consolidate your debts with a reasonable rate loan and relax!

johnllew

You have, on average, £1700 a month coming in and have to pay out, on average, £850. Pay the balance of £850 each month off your Barclaybard bill and you'll clear it in under 3 months. You can then put the £850, plus the £450 (the average of £400/500) you're already paying, to reduce your debt at the rate of £1300 per month. Bingo - your £10k will be cleared in under 8 months. So you'll be debt-free in under a year; why take out a loan for 3 years?.

I assume your BC debt of £2k is not included in the £10k; if it is then all your debt will be cleared in under 8 months rather than a year. Simple!

seh_82

Cheers for the advice- the barclaycard isn't included in the 10k. I set myself a 18 month target for getting debt free so here's hoping!

chattychappy

Don't want to sound patronising, but obviously the thing is not to get into more debt. Can be tempting if you've cleared a credit card and you see the statement come through showing £0 balance and ££££ credit limit.

CLAPTON

first of all you need to understand where all your money is going
you say you have 1,400 - 2,000 coming in
spend 450 on debt repayments
spend 400 to rent and bills

so that leaves between 450 and 1050 left over... what do you do with it?

1. do a proper budget
http://www.makesenseofcards.com/soacalc.html

and post up the results

2. start to keep a spending diary and write down every single thing you spend

Once you know where your money goes, you are better placed to see the way ahead.

3. I'm not sure of the logic of replacing 0% CC with a loan that charges interest but I guess there is some certainty about the loan.

4. why are you treating the barclaycard differently to the other CC? .. its just a debt like the others

5. presumably you have stopped spending on the CC completely now?