Card/debt help?

brighthair

I just want to know if I am tackling my debts in the right way!!
I have my student loan which comes out my pay

then
Virgin credit card - 0% until Aug this year £1500
Sainsburys credit card - 0% £330 (took out to pay car insurance and save money, paying off each month £33)
Overdraft (the big one!!) £1900 which I am never out of and generally a few pounds off limit by pay day

So tackling it
I am paying off the Virgin credit card approx £100+ every month
The Sainsburys one is ok as I was paying £33 a month DD for car insurance last year so just a diff method IYSWIM
Overdraft - :eek: I can't clear the Virgin CC and the overdraft at the same time. Overdraft costs me around £14 a month.

Am I right doing the CC first??

This is old debts (student for 5 years :rotfl:) and my money management is better now but I can't free up much more out my salary each month. Any spare money at the end of the month gets paid off the CC (in addition the the £100+)

Tixy

What is the interest rate on your overdraft? Do you know what the virgin APR will be after August? What do you think the chances of getting another 0% are? (is your rating good, cards not maxed etc?)

Sometimes people find it easier to open a new current account with a new bank and no overdraft to use for their salary etc and then set up a standing order to start repaying the old overdraft. Maybe you could then split the payment between the virgin card and the overdraft.

InTheBlack

I'm new to this but..... I'd think you'd be better off paying the O/D first? As that is currently costing you money. But this is based on you paying the off the Virgin card before the end of the promotional rate.

I did have a sizeable overdraft and I just payed it off like a credit card debt. On-line I was able to reduce or increase it. I just reduced it month by month £100 here and there. Just factored it as a debt, in fact I probably put too much emphasis on it! Just liked the bank statements without the OD by them all the time :rotfl:

brighthair

well I've just taken out that Sainsburys one, and got a £3000 limit - my credit rating appears to be pretty good
I can't find a bank statement for some reason but the charges are £7 for the account and £6 ish on interest - It's Barclays Additions Graduate account if that helps

My plan for the overdraft - as I am NOT good if I see spare money in there, is to put the money in my savings account (instant access) and when it gets to £1000, pay it off, reduce overdraft and keep doing it until I am back in credit

at the moment I put £150 straight away in my savings, and use that for both CCs, then just pay off any spare at the end of the month

Butti

I don't really know what to advise. Your O/D will currently be costing you more - mine is at 18% APR and costs me about £18 per month, BUT I expect your Virgin card to go up to a WHOPPING 25% in August which will mean about £375 per year in interest alone.

You could pay off the O/D first but you'd have to be fairly sure of being able to move the Virgin balance. An APR of 25% really stings!!

B

brighthair

ouch!! looks like I am doing the right thing then!! well hopefully - 100 a month, 10 months till Aug = £500 left on it which I should be able to get another 0% for. Although I am aiming to clear the whole lot

Butti

I would just be tempted to move it beforehand. I'd left my Halifax card with a £10 credit on it with a view to moving the Virgin balance. I think the Halifax got sick of not making any money from me and reduced my available limit from about £2000 to £500 just before I was planning to move it. The Halifax's is about the lowest rate I am paying but they have really tied my hands for moving money around.