Paying off cards what would you do?

Melissa22_Mum

I know there's oodles of information on here but I have certain circumstances so just want to know what you'd do in my situation!

I have two credit cards with stupidly high APR I've had them for ages and got them when I could afford it.

I have 1200 with Capitalone and 1100 with Barclaycard. I went over with Barclays by accident and they charged and charged over and over so I was paying nothing off. I set up a 3 month plan to get back in credit not long ago. My next payment was a day late (inclusive of the 4 days to reach account crap) by cash in branch this took me over the limit again. So, I was back to square one.

I paid in 100 quid the other day to get back in credit. My capital one card have just increased my limit to an extra 600 quid or so. Is it best to use that to pay off the Barclays so I can start throwing all the extra into Capital one and ease off the payments on Barclays?

If I carry on, I'm juggling at the edge of both cards. I actually like my capital one and haven't ever had an issue with them.

Barclays however are a different story. I wrote to them several times emailed to tell them I'm struggling etc but they never take an interest and basically just say tough s**t. They offered to waive the last charge if I paid the minimum last month and they didn't surprise, surprise. I was paying PPi for ages even though I was only receiving benefits at that time.

I don't financially have any other options. I can't work as I have a 6 year old and a 10 month old. My OH works full time we more or less live on tax credits.

So what should I do? Anyone else in similar position?


Thanks for reading, I appreciate any advice

Tixy

What are the APRs on each account?

What are the limits on each card? and the balance?

Unless the cap1 is a significantly lower APR then it probably won't be worth doing a balance transfer from capital one to reduce barclaycard (by the time you've taken the balance transfer fee into account).

What are the current minimum payments on each? and how much can you afford in total a month to these cards?

Melissa22_Mum

Hi Cap 1 is 1200 (1700) at the moment. 55quid a month payment before increase The APR is 30 something.

APR on barclaycard is 30something too, I pay 30quid to them a month. I wasn't paying more as it's been over limit for about a year!!! It was wasted but all I could afford.
I could probably manage an extra 5er on each at a stretch but that would be it.

I was thinking pay BC the 600 then that would reduce the payment a little and put any extra into C1 as well as the usual payment.

Tixy

You can't pay money from capital one to barclaycard. You would have to do a balance transfer, which costs a fee. You'd need to look at what the balance transfer fee is on your captial one account in the terms & conditions.

It isn't worth doing unless you know you'll save money overall, and you won't know if you'll save money until you know exactly what the APR on each account is.

If the APRs are nearly the same and BC is over the limit then pay the minimum to the captial one card each month and as much as you can afford to BC. If it is over the limit then you need to pay more than the normal minimum to get it below the limit. And you need to ensure all payments are made on time, its crazy incurring late fees for being a couple of days late.

If you are struggling to pay more than the minimum then it might be worth posting on the debt free wannabe board and posting up a statement of affairs so people on there can help suggest ways you can free up more money to pay towards these debts.

scott_lithgows

Melissa22_Mum wrote: »

I was paying PPi for ages even though I was only receiving benefits at that time.

I would claim back the PPI and put it against the debt.
Has your OH tried BT the debt to a new card? (sygma card?)
BTW we both work with 2 kids and get tax credits to help pay a childminder (not making a judgement but might be worth it until the debt and hassle is history)