Getting out of debt

icklejulez

I know you may think you know how to cut your costs(just like I did) It really does take someone else to point these things out to get you to cut your costs. These guys did a great job at pointing out silly little problem area's I thought weren't worth getting rid of. They are already helping my husband and I get out of our debt. We too had a large sum of money to pay off debt's but unless we sort our spending out know we could be in the same situation again a year along the road.

Definatly paying off CC's will clear some spare cash but instead of treating it as spare cash use it to pay off the rest of the debt's. By spending 6 months or so living like this will help get you out of the situation. By then your fashions of spending money will of changed and also your view on money.

Seriously, these guys know every trick on this book and by looking around this website you can find an answer to anything.

all_hours

moonbeam51 wrote:

Applying for a life of the balance card is an excellent idea. I've done some research but I'm unsure whether to go for Morgan Stanley or M&S - does anyone have any advice? We previously had an M&S card but cleared it because of high APR - would we still qualify for the offer? Which card is likely to give the highest limit?

Thanks again,

moonbeam51

M&S new card doesn't have transfer fee - but after you've paid the £25k off your CCs you'll only have £1k left which you could pay off in following month - do you think it's worth applying for a new card at the moment?

moonbeam51

all_hours wrote:

M&S new card doesn't have transfer fee - but after you've paid the £25k off your CCs you'll only have £1k left which you could pay off in following month - do you think it's worth applying for a new card at the moment?

I see what you mean but I'd prefer to take my husband's cards into account as well. Maybe he should apply for the new card instead.

all_hours

Do you or your husband have more cards than you've listed?

AMEX £6k @ 14.4%
AMEX Red £1k @ 12.24%
Debenhams £4k @ 29.9%

My husband has
John Lewis 10k @ 14.53
Capital One £5k

These add up to £26k including your husbands cards. By the time you've applied and waited for the new card to arrive you could have paid off the last bit on the CC.

CLAPTON

all hours ...you have inadvertently chopped off the nationwide at 13k so the total CC debt is 39K

all_hours

CLAPTON wrote:

all hours ...you have inadvertently chopped off the nationwide at 13k so the total CC debt is 39K

My mistake I thought that was the 13k loan. So it's 13k on a CC and a 13k loan?

moonbeam51 - What's the APR on this?

klare_2

i just wondred why no one has mentioned offereing a lower amount for a full and final settlement.
someone posted on here a few weeks back and she had managed to settle something like 25k's worth of debt with 11K1 I was just thinking that OP could clear a lot more if she were able to take that tactic. I know it puts down a bit of a moral question for some people on here but for me personally I would nt have a problem with that.

mountainofdebt

klare wrote:

i just wondred why no one has mentioned offereing a lower amount for a full and final settlement.
someone posted on here a few weeks back and she had managed to settle something like 25k's worth of debt with 11K1 I was just thinking that OP could clear a lot more if she were able to take that tactic. I know it puts down a bit of a moral question for some people on here but for me personally I would nt have a problem with that.

I think its because unless you are in deep doggy do regarding payments cc companies don't even consider a full and final payment....this general means your credit rating is all ready shot to pieces and by making a full and final settlement payment, you are accepting that the rating is going to be shot to pieces for the next 6 years - until the partial settled record falls off your credit record

Apologies though if I've completely misunderstood the theory of full and final settlements.

I know its not very DFW but personally I would want to be able to say I know what I did with that £25K. My fear is if I paid off the credit cards with it, I would be tempted to build up the balances again, so for me personally I would have to pay it towards the mortgage and use the drop in the monthly payment to pay off my credit cards. As I said not totally DFW but for me I think that would give me greater peace of mind.

dudleyboy

That's a fair suggestion but probably wouldn't help the OP from getting into the same situation again I think... and with £25k to play with and hardly living on the breadline, I don't see why the full amount shouldn't be paid off.

It looks like you've taken the suggestions onboard, moonbeam51. You'll be back in the black in no time.

mountainofdebt

but the OP has had her lightbulb moment now !