Debt Organisation - clever people help

Numpty_2

OK, I'm not going to call it consolidation, because it's not that - it's changing my debts so they are cheaper and easier to manage (fewer number of payments but same value IYSWIM). I tart one of my credit cards which is currently aroung 7k, however the card I was going to put it onto has only given me a 4.5k limit and I have tried but they wont up it to tart the full amount over.

However because my limit on my account isnt enough for what I originally had planned I'm looking at moving other accounts - either mine or my OHs onto it, and closing those cards, I think I have an idea of what to do but financially I'm still trying to work it out!

OK, so this is what I owe;

OVERDRAFT HSBC 1500 (500 @0% 1000@11.9 I think!) - just changed to an A&L account, interest free
OVERDRAFT ABBEY 300 (500@0% - min £10 a month)
BoS 6801 (0% till end of month then 16.9%, 2% min)
Lloyds 1861.94 15.9%, 2% min
LOAN HSBC 1874.6 (interest pre paid, fixed payment of 267)
CREDIT CARD EGG 1200 (15.9%, 2% min, currently pay a fix £150 a month)

The A&L card I've just got is interest free for 9months with a 2% balance transfer fee

I also have an empty HSBC credit card with a 2k limit and can transfer over for 6months at 5.9%, again with a 2% fee.

I dont want to increase my debts, I want to clear them, so as much as the cheapest would be nicest, I dont want to not do a full amount so as to have more cards with "bits" on them. And I will close all the cards I sort out

Also OH has a credit card with a limit of £4700 up to the limit and interest of 17.9%.

My current idea is to pay off his credit card with the A&L one, and the extra interest free component I have with my abbey overdraft (which is there for another 10months), and get him to pay that card off.

I will then contact the (not so) lovely people at HSBC, see if I can increase that limit and transfer both the Egg and Lloyds credit card onto it and pay that off and leave the BoS one where it is and make that a priority payment.

Any ideas or are you now feeling as confused as me? Or shall I just ask them to close the A&L credit card and not bother.

I have £850 a month to pay off debts

Xbigman

This sort of thing is not consolidation so don't worry about being accused of it.

I agree with you that all your card moves are a bit confusing but as long as they make sense to you thats ok. However, you might want to post the technical ins and outs of all these moves on the credit card forum.

My only other real points are that you should make sure you close unused cards because these will drag down your new credit limits. Also, try not to make too many applications too quickly as this affects your credit score. Finally, look out for life of balance transfers. In your circumstances they are more valuable than 0% cards long term.
Regards


X

Numpty_2

I tried a balance for life (M&S) and got rejected. I wasnt going to apply for another credit card for 6months but ticked the box when I applied for my new current account and hey presto it arrived. I do think my main problem is the amount of unused credit available as I have missed no payments in 2years and am a home owner with a good salary.

I'm not going to apply for anymore debt in the next 6months (my current contract ends then, so I may be in a better/worse position as well), and I think my idea is the best one, but as you can tell - I cant see the wood for the trees with the varying amount owed, interest rates, offers and balance transfer fees!

Oh it's so confusing

alidadas

Although I understand you want to reduce the interest you're paying, the logisitcs of it has confused me so cant really advise much - BUT, as you have quite a large amount to pay towards your debt each month, couldn't you just use the whole it (minus your minimum payments ofcourse) to pay towards the debt with the highest interest, and then when thats paid off move to the next one??

If you set up spreadsheets in excel you should be able to keep on top of it!