Help Im an Idiot I've run up £5000 on two cards

ShaneJoshua80

I have two HSBC credit cards one Master Card and the other Visa. I have run up £2009 on the Visa and the reminder on the Mastercard. Im just wanting to know my best options for paying off these as quickly as possible.

I earn roughly £1700 a month after tax £324 of that goes towards a car loan which will be paid in October of this year with HSBC. The rest goes out in various dribs and drabs including £800 into a joint account with my finacee to pay for all our bills and rent.

I have tried to use some of the tips on this site but my main is I very rarely have any physicla cass in my wallet I always elect to chip and pin. I very rarely read my statements and very rarely check my internet bank account.

What do I need to do to get myself back on top and to stay on top it off I am overdrawn by £400.

I want to get myself sorted as I'm going to be moving into my first place with my wife to be and even I know its not a good I dea to be carrying debt.

Paul_VW

the first thing you need to do is work out how much money you have spare after your bills rougly 550? work out how much you spend every month on food going out etc. (say 200?) then set up a direct debit so that 350 gets paid off every month

also i am guessing the rate of your hsbc card is quite high, so try switching to a lower rate card

The_Boss

You earn pretty good dosh and credit to salary ratio is good, so I'm sure you could apply for another credit card with a 0% limit. That will help to keep the interest down and mean more of your money goes into paying back the debt rather than on interest.

I reckon you should apply for an Egg money card and a Barclaycard at the same time. If they are both successful, then do a balance transfer from the Barclaycard to the Egg money, and then transfer the positve balance to your bank account. Use this money to settle the rest of the car debt. Then use the money you would have used on the car to pay your cards. In about 4 months time, get another 0% balance transfer card and do it all again.

Wickedkitten

Start using cash, read your statements, and look at your bank account.

The_Boss

Wickedkitten wrote:

Start using cash, read your statements, and look at your bank account.

I agree with the cash bit, though using a card is so much more convenient - and easy, which is the problem in most cases.

blacksta

claim back any penalty charges that might have been applied in the last 6 six ( i bet that would reduce your debt by a mile)

https://www.bankactiongroup.com

The_Boss

blacksta wrote:

claim back any penalty charges that might have been applied in the last 6 six ( i bet that would reduce your debt by a mile)

https://www.bankactiongroup.com

How do you know he had any penalty charges? He hasnt said he failed to abide by his terms and conditions. Also not particularly good advice as it could lead to them recalling the entire debt as they are permitted to do at any time. Then he would really be up the creek without a paddle.

blacksta

just guessing