23, 3 k debt , anyway to pay in one lump sum?

crazy_gooner

Hi guys thanks again, after re-thinking, I will not use a debt company for 3 debt.

Nottoobadyet, Your right, start putting money aside to the debt, my spare money and work it that way, perhaps it can build my credit rating up too :S

I wont want anymore children for around 3 years, hope to be debt free by then, well I will be, I'm determined, but I do see your point, having credit there isn't a bad thing if careful, because we don't know what's around the corner.

Odette, your right, time to cut spending, even if it's minimal because every bit helps.

Also, does anyone know if I can write to Halifax and ask them to stop interest on my credit card? What are the chances of credit companies doing that.

Thanks

crazyguy

crazy_gooner wrote: »

Hi guys thanks again, after re-thinking, I will not use a debt company for 3 debt.

Nottoobadyet, Your right, start putting money aside to the debt, my spare money and work it that way, perhaps it can build my credit rating up too :S

I wont want anymore children for around 3 years, hope to be debt free by then, well I will be, I'm determined, but I do see your point, having credit there isn't a bad thing if careful, because we don't know what's around the corner.

Odette, your right, time to cut spending, even if it's minimal because every bit helps.

Also, does anyone know if I can write to Halifax and ask them to stop interest on my credit card? What are the chances of credit companies doing that.

Thanks

Zero chance of freezing it im afraid !

Odette

Im glad you are doing the right thing. You should pay alot of attention to the guys on this board, they are so so clever. I wouldnt be DF without them. Take a morning, go through your finances and put your SOA up here. You are so lucky to be at this point so young!

bouncydog1

Definately post up your statement of affairs with all of the info requested in it, including interest rates etc.

People on here are likely to be able to save you quite a lot, but YOU MUST really want to take their advice on Board to make a difference. Just be very thankful that you realise you need to make changes before your debt gets out of hand.

You may not like all of the advice and suggestions that you get but if you want to make changes you are in the best place.

Hoopylass

Are you able to transfer the debt to a 0% card? That way your payments will be going straight towards the debt rather than just covering the interest?

GingerFurball_2

I was in a similar situation to yourself last year. In July I had missed 2 monthly payments on my credit card (was about £250 over my £3250 limit) and was also at the limit of my £1750 overdraft, meaning that if the bank had decided to call in my debt I'd have had to find £5k out of nowhere to pay it off - a pretty frightening prospect with a kid on the way.

Since my daughter was born at the start of October, I've aggressively been paying off my debt. Whilst I'm fortunate that me and the missus still live with our parents, I'm still at university so my monthly income from my student loan and my part time job is less that £1k a month.

Despite that, and despite my bank helpfully cancelling my student account, I've managed to reduce my overall bank debt to roughly £2,400. I'm in a position where I should be able to clear the remaining £1,100 balance on my credit card at the end of May, meaning my only debt will be a £2,000 overdraft with the Co-op. As I won't be spending £300-£400 a month clearing off my credit card, that's money I'll be able to either save, or use to bring my student overdraft down. I've been living fairly comfortably despite spending a fortune getting my debt down, so it's money that I won't miss by saving it instead.

£3k isn't a huge amount of debt to pay off - it can be done within a year if you cut down on unneccesary outgoings and put whatever you can afford towards your debt - although a statement of affairs would be handy to see exactly where you could make a few savings.

My advice is to definitely check whether you'd be entitled to Tax Credits - as I'm 26, I was entitled to £50 a week whilst working full time in the summer, and the extra money made a huge difference in helping me start to pay off my debts.

crazy_gooner

Hey guys, long time, but to cut it short, I've been very lucky.

A family member has offered me 3k interest free (pay back 100 a month until I earn more) , so I will clear my credit card of 2k up and 1000 on my overdraft, and I'm done.

Questions I have are,

How shal I pay my credit card? normal way of standing order? Or call? I wish to cancel it too, some people have told me they have been charged for cancelling their credit card, or is that a lie?

Also I assume I should call the bank about my overdraft too, and cancel it?

I'm allowed £300 interest free overdraft, I'm considering leaving £100 for emergencies, then again, maybe best I don't?

Thanks again guys, appreciate the advice!

bargainbetty

If you have the funds, pay your credit card off (you can call or send a cheque as you prefer) and rather than closing it off in full, why not ask them to reduce your limit to £500? That gives you an emergency fund should anything go pear-shaped, but doesn't allow for silly spending. Then stick the card in a small tub of water in the freezer. Much harder to use it if you have to work to get at it!

Reduce your overdraft too, but allow a little wiggle room - unless you have the spending under control, you might sneak a few quid into it and be stuck with stupid charges.

I would really recommend you post up a SOA so people on here can help you get your spending sorted - no judgements, just good advice on how to reduce your outgoings!

Good luck

moocowone

crazy_gooner wrote: »

How shal I pay my credit card? normal way of standing order? Or call? I wish to cancel it too, some people have told me they have been charged for cancelling their credit card, or is that a lie?

You can pay it by all the usual methods: debit card, bank transfer, cheque, etc.

Remember, you will be charged trailing interest. e.g. say you get your statement on the 15th of the month. Today is the 30th. Say you pay off the full balance today and get it down to £0.00. Next month, you will still get an interest charge. Why? Because from the 15th (the date of your last statement) to the 30th (today, when you pay it off) you have still been accruing interest. This will appear on your next statement. DON'T FORGET TO PAY IT OFF! After that, it should remain at zero balance as long as you don't use the card.

crazy_gooner wrote: »

Also I assume I should call the bank about my overdraft too, and cancel it?

I'm allowed £300 interest free overdraft, I'm considering leaving £100 for emergencies, then again, maybe best I don't?

You should pay off all your debts so that you can aim to live debt free (apart from this family loan). As long as you trust yourself, it's worth having an interest free overdraft. If you run your bank account close to zero, an interest free OD means you can dip into it without running up huge bank charges, having direct debits bounce, etc.

CH27

crazy_gooner wrote: »

After having a look around, I think I'll be calling a company called Baines and Ernst tomorrow, to see what they can offer me. They look legit etc.

Anyone had experience with them?

Thanks!

Deleted. Didn't realise it was an old thread.