credit card debt

andyfrance

Hi,
I have a 8000 pound debt on my card, interest is £70 per month and i pay £150 per month on it, its all i can afford. I know i got myself into this mess but i'm trying to deal with it. It just never seems to go down and we as a family are just managing to hang on with everything. My partner says go to the bank and take out a loan over five years as interest will be lower, i have the debt on a 6.7% for life so dont think a loan is a good idea. If a approached the credit card company which is halifax would thet freeze the interest so at least i can get the balance down?? Any ideas please,
thank you

YorkshireBoy

andyfrance wrote: »

If a approached the credit card company which is halifax would thet freeze the interest so at least i can get the balance down??

The interest is "frozen" now, at 6.7% for the life of the balance...is it not?

Or do you mean you want them not to charge you any interest at all?

To be honest, whilstever you're making more than the minimum payment each month I can't see them changing anything for you!

chattychappy

Yep no chance of a freeze, I think.

Something slightly wrong - looks like you're paying nearer 11% interest. 6.7% APR on £8000 would be about £43. Have you mixed transactions - eg by having a balance for life deal, but then putting further purchases onto it? Certainly don't put more transactions onto it. They will probably attract a higher rate of interest and your payments will be applied to the lower rate balance first.

Can't see you doing better than 6.7% on a loan, though you might do a little better than 11%.

Not sure what other credit you have - but if you're paying interest elsewhere you could look at that. OR get a 0% on purchases card (eg Tesco) and only pay the minimum. Use the extra cashflow to knock down the "6.7%" card a bit more. HOWEVER, you must leave enough in reserve so that when the 0% deal runs out you can pay the balance.

From what you say you are "dealing with it" - as the balance shrinks, you will pay less interest and therefore more of your repayments will go on the principal.

byebyedebt

If you are paying a fixed amount, pay it as soon as you receive your statement. Don't wait until the due date. This will help to lower the interest slightly.

How do you pay the card off each month.

Have you produced a budget plan.

Fruit_and_Nut_Case

chattychappy wrote: »

Something slightly wrong - looks like you're paying nearer 11% interest. 6.7% APR on £8000 would be about £43. Have you mixed transactions - eg by having a balance for life deal, but then putting further purchases onto it?

Or possibly paying for PPI? That would add about £63 to the monthly bill, assuming 79p per £100 debt.