Debt Advice

Bobby_Peel

Hi I'm new to the board and just wanted to know if what I'm doing is right or is there any better ways to clear my debt.

Nationwide Visa
£649.13 Limit £3740 14.9% APR Paying £50 a month

Bank of Scotland Visa
£4439.52 Limit £5300 Currently 0% Interest until October Paying £150 a month

Cahoot Flexible Loan
£5897.27 Limit £8000 11.5%APR Currently Paying £200 a month

Total
£10985.92

I shall be receiving £1500 of shares in the next view weeks which I plan to pay on the Cahoot Loan.

I also have a couple of credit cards that I have had in the past which now have nothing on them after transfering the balance. Should I cancel these? and if so how do I go about this.

Thanks

Emmzi

Pay off highest interest rate first -so nationwide visa. Try this...

http://www.whatsthecost.co.uk/snowball.aspx

What does BoS go to after 0%? Will it be clear by then?

Write to card companies and ask them to cancel old accounts and close.

Emmzi

OOPS!

Forget to say welcome too!

That's what I get for typing and cooking...

bargainbetty

Once you have closed the old empty cards, try applying for another 0% deal somewhere. Get the card, transfer the balance and then cut up the card!

Definitely pay off the Nationwide one first though - clear another debt off your list outright and your [STRIKE]credit[/STRIKE] debt rating improves.

Bobby_Peel

Emmzi wrote:

Pay off highest interest rate first -so nationwide visa. Try this...

http://www.whatsthecost.co.uk/snowball.aspx

What does BoS go to after 0%? Will it be clear by then?

Write to card companies and ask them to cancel old accounts and close.

The BoS goes to 12.9%

I didn't realise that paying off the highest interest off first would help.

With the £1500 would you suggest paying off the Nationwide and with the rest put it towards the Bos? Its just with the Cahoot as its a large amount I am paying £200 off it a month but getting £50 interest charge so effectivity only paying off £150.

On cancelling the cards, would a letter stating my name, address, card number and to cancel the card be ok?

Thanks a lot for the help

Emmzi

If you had £5000 on the nationwide it'd be worse- about £62 a month interest. Get rid of this first. The cahoot money is actually 'cheaper'.

I might be tempted to call and cancel to see if you get offered any deals. 0% interest is useful, as is a low 'life of balance' transfer. But if no joy, ask to cancel, close account, and follow it up in writing as you suggest.

Annie_Fanny

Hi there Bobby

Have you checked whether you can actually overpay on the loan as some of them have penalties for doing so! Rats! Best to check first...

But would still advise to follow the snowballing technique. Did you try it out? http://www.whatsthecost.co.uk/snowball.aspx
It will give you a Debt Free Date as well! Something to spur you on!

Woo hoo!

Annie

Annie_Fanny

Here's a copy of the letter I sent to GE Capital (or whatever they are called) on Tuesday to close my Topshop account:

Dear Sir/Madam

Account number: Blah blah blah (Topshop)

I wish to close the above account due to a change in my financial circumstances. I have destroyed and disposed of my store card. When the account has been closed could you please confirm this in writing.

Yours sincerely

Bobby_Peel

Yeah tried it and it said pay the Nationwide off liek both of you say. Thanks again for the help

Bobby_Peel

I have just a received a Halifax Visa statement today which I don't owe anything on (Its was a card used in the past) and at the bottom of the statement there is a Balance Transfer Form which states "If you transfer a balance from another credit or store card today, we will charge interest at the rate of 0.00% for 9 months from the date account was opened"

My limit on the card is £2750

Is it worth transfering £2750 from the Cahoot Loan on this card?

Thanks

lynzpower

Absolutely!!

If you are anything like my OH who also has a cahoot flexi loan they are a bu***r to pay off, as you can dip into it whenever you like. He is getting 0% cards to cover it so I would DEFINATELY do this, then you have less money on the cahoot loan with high interest. Ask halifax if they would consider taking ALL of the cahoot loan. But if not, just transfer as much as you can