What should I do?

Risinfromthegutter

Hi,

I am having problems with my credit card debt.

I was wondering if anyone cud advise me on the best way to deal wiv them.

I have the following cards:

MBNA -

Oustanding balance - 2800 (approx)
Credit limit - 4400.
APR - 6.9% until January 2007
Monthly payment - 22.00 (approx)

NatWest -

Outstanding Balance - 3300 (approx)
Credit Limit - 3500.
APR - 16.9%
Monthly payment - 78.00

MINT -

Outstanding balance - 0
Credit limit - 700
APR - 0% until December i think.

I have savings of around 2800.

My plan was to get the credit limit of my Mint card to around 1100, use 2300 of my savings to pay on my Nat West card, and transfer the remaining balance on my NatWest card to my MINT card, unfortunately my request for a 400 pound credit limit increase was rejected by MINT.

Now I do not know what is the best thing to do. Please help

newmoneysaver_2

I would agree that looks like the ideal plan, but you need to make sure you pay off those balance before the special rates end. How much do you pay a month?
It might be worth looking at the debt free wannabe board - you'll get loads of hints & tips on ways of reducing these debts.

HTH

littlestar1981

I would say pay the Natwest with the savings. That would leave 500 on Natwest at 16.9%. Then get this transferred to Mint (but check if the 0%) would apply to this.

Then woo! you're one card down already!!

Risinfromthegutter

Thanks.

I dont really want to use all my savings. I know it makes sense to but, I have had to dip into the savings for necessitites such as gas bills and TV license etc recently.

Although it does sound good to be rid of the NatWest card and only having 500 on another card.

sdj25

Chances are you won't be able to transfer the £500 at 0% - they usually have a stipulation that you must transfer the money within a timeframe from opening the acct (e.g. 6 weeks or 3 months)

Some questions you may want to ask yourself:
Who do you bank with? Do they offer a zero percent overdraft at all?
Could you maybe get another card for BT's at Zero Percent?
What would MBNA transfer the balance of the NatWest card over for? Is this better than the Natwest card APR?

My advice would be to use the savings to clear the Natwest card - or at least the vast majority of it.

Joe_Bloggs

@Risinfromthegutter
You don't have any real savings. You just think you do! Spend some of your 'savings' on getting rid of the Natwest card. Budget for the future. It is easier said than done. At least you did not buy premium bonds with your 'savings', or did you ?
J_B.

Risinfromthegutter

Hi thanks for your replies

I do have a interest-free overdraft of up to GBP750.00, however, By the end of each month my bank balance is always (750.00).

I think I recall at the time of activating my MINT card the representative said that any balance transfers would be at 0% whenever they were transferred during the 6 month period.