My debt

krisskross

LewisC wrote:

The cash advance rate on my Barclaycard is the same as for purchases, so technically, would it not be a good idea to put all my spare cash onto paying off the Barclaycard each month, then using cash off that if/when I need it?

Think you really need to get rid of the cards altogether so you will not be tempted to spend on them. They have frightening interest rates.

Good that you are concerned about your debt before it gets unmanageable..well done you.

LewisC_2

krisskross wrote:

Think you really need to get rid of the cards altogether so you will not be tempted to spend on them. They have frightening interest rates.

Good that you are concerned about your debt before it gets unmanageable..well done you.

Thanks.

Did you understand what I meant before though? If I pay all my bills, and have, say, £350 left over. I'd then pay £350 off my Barclaycard and be left with no cash. If/when I needed cash (I'd be careful not to), I could take it off the Barclaycard at no extra cost because the cash withdrawal rate is the same as the standard interest rate.

La_Tristesse_Durera

LewisC wrote:

Hi folks,

Have been lurking here for a while now and want to get my debts sorted once and for all. They are manageable, but I'd like them gone

I currently owe £1,000 to my parents from when I was unemployed and they covered my debts. I owe just under £1,600 to Barclaycard, £250 to CapitalOne, and £200 to Vanquis. Yes, I know - credit cards are bad, but what's done is done.

I take home £1,000 a month and my other monthly bills total £310 a month. I pay £100 board and lodging (still live with parents), £113.75 car finance, £10 upkeep of website, £45 mobile phone bill, and £45 car insurance. I also pay off the minimum repayments on my credit cards.

My Barclaycard is 27.9% APR, Vanquis is 29.9% and CapitalOne is 19.8%.

Are there any debt gurus out there who can help me formulate a proper structured plan to get my debts paid off?

I'll be 21 in June and want to be debt-free by then. Please help.

---

My SOA

Monthly Incomings:

My salary - £938.52

Total - £938.52


Monthly Outgoings:

Rent - £100
Phone - £45
Car Insurance - £45
Petrol - £10
Haircuts - £10
Nights out - £100 max


Total: £1,359.83


Debts

Parents - £1,000
Barclaycard - £1,578.91 @ 27.9% APR
Vanquis - £200 @ 29.9% APR
CapitalOne - £250 @ 19.8% APR

Only £10 in petrol!! Lucky !!!!!!!!
Seriously though, having a quick look at that, you've got the added bonus of living with your parents at only £100pm.
Perhaps you can get a small loan at a good rate? Without too much detail it looks like you could afford £300-£400pm paying this off. It'd be gone in a year!!

Toomuchdebt

I think paying the extra money should go to the card with the highest rate,and you should budget carefully so you don't need to take money off any cards.

wanna-be-mortgage-free_2

Agree with 'toomuchdebt' you need to pay off the card with the highest interest rate but don't leave yourself with no money at all, you need to start budgeting correctly so you don't reply on the cards at all. You should pay of the Vanquis card at once as it has the highest APR. You could apply for a 0% balance transfer card and move your next highest on to it so that you will be paying the capital off without being charged interest.

Good luck and sorry I didn't get to answer sooner, in my quest to reduce my debts I cancelled my broadband at home so can't get interest access except at work - ah well at least the debt will be going down quicker :rotfl:

LewisC_2

Thanks for all your advice guys

I can't get a 0% balance card due to poor credit history... Does anyone know of any that will take me?

wanna-be-mortgage-free_2

You could try phoning the credit card companies up and asking if they can reduce the apr. Before moving to a 0% b/t I phoned Halifax and they dropped my apr to 9.58, which isn't great but at least they were willing to do something. You should give it a go especially the Barclaycard one!

LewisC_2

wanna-be-mortgage-free wrote:

You could try phoning the credit card companies up and asking if they can reduce the apr. Before moving to a 0% b/t I phoned Halifax and they dropped my apr to 9.58, which isn't great but at least they were willing to do something. You should give it a go especially the Barclaycard one!

Thanks, I never realised you could do this! Will give it a go later.