What Do You Think I should Do?

bluevin123

Hi All,
I was wondering if any of you could advise me in what to do.
I have 2 credit cards, one a Sainsburys,the other Abbey,
Both have finished being interest free,but I owe about£3800 on the abbey and
£2500 on the Sainsburys.
I pay £80 a month of each one(cant afford no more)
The thing is im being hit for about £40 month on the abbey,and £30 on the Sainsburys.
Thats £70 being wasted(Gutted)
Ive tried applying for other cards,interest free,or low interest but to no avail.
My credit is not very good,but have been okay in paying on time lately.My credit score is 341,which puts me in the fair bracket.
I already have loans/car loans so cant borrow/dont want to borrow anymore money.
How long do you think ill have to wait before them agreeing to give me a card.
It just bugs me that £70 is paying interest when it could be paying off the bill.
Does anyone have any idea in what I could do? or shall I just sit patiently waiting for my credit to improve.
Any help would be appreciated.
Cheers.
Vinnie.

Willsnarf1983

wait 3-6 months (the longer the better) and make sure u pay on time and without fail

Will

piglet6

Hi Vinnie

You don't mention whether £80 is the minimum requested by each card every month, but if not, you should see which card charges the lowest interest rate and make just the minimum payment necessary on that one. Then throw whatever is left of the £160/month which you have available to use for the cards at the one with the highest interest rate, to bring that one down quicker and reduce the amount of interest you pay. Then, once that one is paid off, pay all the £160 a month off the next card.

Paying debts off this way is referred to as "snowballing" - try putting that into the search facility on here and I'm sure it will pull up lots of posts which explain it better than I have done...

Good luck!

Piglet

jonimitchell

I think piglet was spot on. Also, may be worth checking whether one of the two cards has any balance transfer deals and if you have sufficient credit left, use that to your benefit, both ways.

CLAPTON

post an SoA

see
http://forums.moneysavingexpert.com/showthread.html?t=107280
and get some advice about your overall financial situation