advice needed on reducing credit card dept

djmilo

I am a new member, and desperately want some sound advice on how to get myself out of my credit card hell. I have 3 cards, none are at their maximum limit, and the total dept although large isn't my main problem, it's the fact that by paying the minimum on each card each month is getting me nowhere on actually attacking the outstanding dept. i have 7K on barclaycard, 8k on lloyds tsb, and 5k on BoS worldcard. I assume transferring to 0% apr cards is the answer, paying a token minimum on the cards for the 0% period and saving up as much as possible to throw at the card before the 0% offer ends. Is this a sound idea? I am not spending on these cards now, infact rbs and barclaycard cards have been cut up. I have only recently stopped to take stock of my situation and really want to get this dept down before it drives me mad..!
Any advise greatly appreciated...

robnye

welcome to the site.


if you are unable to get another credit card with a 0% deal,

check the interest rates on the 3 cards, see if there is any credit limit left on ccard with the lowest interest rate..... transfer from the highest interest rate to the lowest.....

before the transfer (if it means moving the whole amount) try and bluff your current ccard provider into lowering the interest for a period of time.... if that doesnt work, then move the debt anyway

miss_lisalou

Rather than keeping to the minimum monthly repayment, can you round it up to something, say £100. per month, for instance. If so, keep paying this £100. (set up a standing order to pay) and don't be tempted to drop back down to the minimum amount. You'll be suprised how much quicker the debt will disappear that way

Reaper

Your plan is sound, djmilo. If you cannot get 0% cards then there are other options too as mentioned above.

I suggest you start by having a read of some articles on the main site such as:
Where to start with problem debts
Best Balance Transfers
The Credit Card Shuffle

Feel free to ask if you have any questions.

johnllew

djmilo wrote:

5k on RBS worldcard.

Is not the BAA Worldcard run by the Bank of Scotland, not the Royal BoS?

http://www.baa.co.uk/doc/2902962a841dc2278025690700434044_frame.html

If you've got the BoS Worldcard, you might be able to upgrade it to a BoS "One" card which gives 0% for 9 months on BTs and purchases. That might give you enough of a breathing space to get your finances in order. If you can upgrade, you'll have to transfer the debt off the card first, either to BC or LLTSB (or a new card if you can get it) and then back again.