Help with credit card payments

mikeg1

I need help with our credit cards, we (my partner and I) have balances on credit cards that we cannot clear in chunks.

Our salaries are joined are ok, but we overheads we are trying to manage.

The card are as follows (with what are interest rates, balances and credit limits).

Virgin - 16.6% - bal £4k - limit £10k - min repayment £60
Barclaycard platinum - 17.9% - bal £3k - limit £11.4k - min repayment £80
MBNA - 15.9% - bal £7k - limit £8k 0% balance transfer until nov2009 - min repayment £25 (as 0%)
Lloyds - 15.9% - bal £5k - limit £6k - 0% balance transfer until jan2010 - min repayment £104 (as 0%)

MBNA 2 - 15.9% - bal £9k - limit £10k - min repayment £122 (as 0%)
Egg - 16.9% - bal £2.5k - limit £3k - min repayment £50 (as 0%)

So monthly repayments total around £450

There are 2 cards above that have outstanding balance transfers that will end in Nov09 and Jan10 respectively.

We are currently making minimum re-payments, and are trying to raise a lump sum to clear some of the balance by either re-mortgage or family loan.

The minimum options I think we have are either further balance transfers, but I think as we are borrowing with a good selection of lenders it is questionable what other options are available.

We are more or less at the stage with working closely on our finances that the cards are no longer growing. But I need to start trying to either clear them, or at best reduce the repayments.

Any help would really be appreciated, as I currently go through the day constantly thinking about money and not sleeping.

If I am light on information please let me know.

Many Thanks
Mike

stephane_2

You need to pay towards as much as possible on the cards with the highest interest rate and pay minimum for rest of them. Applying for another 0% deal might be difficult as you already owe almost 30K on those CC. Unless you can raise some funds to pay off some of them, am not sure what would be the ideal solution with that amount of debt.

CLAPTON

-have you made out a proper budget .. a good format is
http://www.makesenseofcards.com/soacalc.html

if you want to stick the results up either here or on the debt free wannabe board you may get some useful feedback.

-do you know where all your money is going.. start to keep a spending diary, just wrtie down everything you spend and see where the money is going... can be a real eye opener

-can you increase income... overtime, parttime job..lodger etc?

without knowing the full financail details its not really possible to say how best to manage the situation.

mikeg1

Thanks for the feedback, we have worked on our budget and as such
stopped the cards increasing. My main concern apart from the money we are going to raise (by saving from our budget) is to try to increase the card payments is to priortise which cards to clear. Is it as obvious just to clear the ones with the highest APR' first.
And also whether there are any other offers out there that would be worth taking up such as zero or reduced values interest levels to move some of the debt.
I am hoping I have not used all of our options here as we have already got involved with a few card companies.

Thanks again for all the feedback and help.
Mike

chattychappy

Consider applying for a Tescos card (or another 12 months 0% on purchases card, if there's one left). No fees or interest that way, and by paying the minimum only on that for the next 12 months you can allocate cashflow to other cards.

Moggles_2

Do you bank with NatWest or the Royal Bank of Scotland?
A 0% for 15 months BT card is available to existing bank account customers at the mo.
(HSBC has a similar deal for current account holders, but customer service is not so good, IME)

If you're not eligible for the above, a no-strings 13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
IME,and from feedback here, credit limits are generous and the minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp

mikeg1

Thanks again - really helpfull.
For what it is worth I really do feel better facing the issues we have - it is all too easy to put your head in the sand.

Kind Regards
Mike

never-in-doubt

Moggles wrote: »

(HSBC has a similar deal for current account holders, but customer service is not so good, IME)

RBS is in fact is one of the most complained about banks whilst HSBC is one of the peoples favourites..... mine also.

If you're a PLUS customer then cust svs is amazing :beer:

never-in-doubt

mikeg1 wrote: »

Thanks again - really helpfull.
For what it is worth I really do feel better facing the issues we have - it is all too easy to put your head in the sand.

Kind Regards
Mike

With balances like those - UNENFORCEABILITY shouts out! :rotfl::rotfl::rotfl:

Moggles_2

never-in-doubt wrote: »

RBS is in fact is one of the most complained about banks, whilst HSBC is one of the peoples' favourites..... mine also.

'Not talking about the banks themselves here.

RBS group credit cards have good online services and telephone back-up (no overseas call centres).

HSBC cards have mediocre online services and fair to middling call centres located overseas. Need I say more?

never-in-doubt

Moggles wrote: »

'Not talking about the banks themselves here.

RBS group credit cards have good online services and telephone back-up (no overseas call centres).

HSBC cards have mediocre online services and fair to middling call centres located overseas. Need I say more?

I think HSBC online is far superior to RBS - just my opinion but being I bank with HSBC maybe I figure their systems easier..... RBS is actually a outdated system when you look at it in more detail.... I much prefer the java enabled HSBC one

As mentioned, I never speak to foreigners - always people in the UK> maybe cos i pay for Plus?