CC debt management advice please?

HalfPint

Hi all,

I don't usually frequent this board, despite my oh having lots of debt. We haven't hit debt crisis and I am managing to pay off the cards bit by bit, albeit slowly. My OH credit rating has been hit by the amount of cards and a few late payments (before I took control)

We currently have 3 cards (all in his name) as listed:

MBNA £5400 apr 34% :eek:
Capital one £1300, apr 23%
Lloyds tsb £5600 apr £19.5%

We are also paying off a large loan currently at £13500 apr 7% (we are managing this and will clear it in a min of 5 years)

okay..hopefully that's enough for you to go on. I pay over the minimum amount on each card every month. We stopped using the cards over a year ago.

My question is I have my own card with a 0% balance transfer (2% fee) for 15 months. It has 0 balance, 2k credit limit. I want to transfer some of the above onto the card but need advice which is best and also...advice re what I do when the 0% runs out...should I pay the minimum on this and chuck more money at the high percent cards?

I realise I will be taking his debt into my name, which will obviously be my debt then but feel that I can manage it and have set up dd so it will be paid on time every month, My credit rating is good and I obviously don't want to impact that at all!

If you feel i'd be better asking advice in the cc board, please feel free guide to move this post.

Your guidance will be much appreciated.

HP x

Tixy

Hi HP

I would suggest you move as much of the MBNA balance as you can to get it off that high APR. Before you do that you could possibly consider asking your card provider if they will increase your credit limit (although obviously this will be putting even more of his debt into your name etc).

Once transferred just pay the minimum on this for the 15months.
Once the 0% runs out you could either look if you can get another 0% deal or at that point decide to increase the payments to that card.

Ideally until the MBNA is totally gone you need to be throwing any overpayments you can at that card and pay the minimums on all other cards etc.

HalfPint

Thanks Tixy...I've been overpaying on all 3..arggh.

Mbna is a nightmare...OH has tried to get them to reduce interest but obviously since they are raking it in from us, tha answer was no, even with threat of leaving them.

I don't want to take on more than I can handle and know how bad OH is/was with money, Im reluctant to take any more in my name but am trying to help get us out of this mess as best as possible.

Really appreciate the advice...just one more question if I may...does a balance transfer count toward the monthly payment? If so, I can probably clear 2 grand off mbna in one hit.

HP x

HalfPint

Bumping this up to see if anyone can answer my last question. Does a balance transfer count toward your monthly payment?

Ta.

HP x

taxi73

Not usually as it takes a while to go through so can't be relied on.

taxi73

You won't be able to put a full £k on your card as you have to allow for the BT fee and most cards are usually 95% of balance can be transferred.
Your card isn't a MBNA is it?
If yours isn't then go ahead and tranfer..then pay min payments on BT card and pay as much as you can per month to MBNA card to clear that first.

HalfPint

Thnx guys. It's what I suspected.

No my new card isnt mbna...wouldn't touch them with a barge pole!

I'm waiting on the BT being approved...I asked to transfer £1900, allowing enough for the fee, whilst not taking me to the limit. I've already set up a DD to make sure my card is paid every month.

I'll make a monthly payment to mbna anyway...if the BT gets in there before the due date, then at least I'll know I've paid extra this month already

Thnx again.

HP x