what should i do???? advice needed

carslet

hi thanks for reading.

i have got myself into a lot of debt on credit cards, no need to go into details but usual general things.

i do have 14,000 in savings in the bank.

i have 3 credit cards

1. 5000 17.5 %
2. 3000 17.5%
3. 3000 0%

total 11,000

i am not in trouble as such, i pay the minimum payments by DD always been paid so no bad credit score.

i pay both cc 2 and 3 extra 100 per month each and cc 1 150 extra per month.

i cant do this comftably but i can do it.

should i carry on as i am so i still have the 14,000 in the bank, or should i pay the lot off, or just one. any advice would be helpful
thank you

rdchick

Hiya

Pay the debt off unless your savings give you 35% interest you're in debt more than you are saving. You will still have £3000 as a cushion and can start building the savings up again

Pointless having savings if you have debts

Hope that helps!

xxx

27col

Please explain to us the logic of having large debts attracting considerable interest, and at the same time money in the bank paying very little interest.

carslet

27col wrote: »

Please explain to us the logic of having large debts attracting considerable interest, and at the same time money in the bank paying very little interest.

i know what you mean, but it was always incase i needed to move or doing anything in an emergency for example i lost my job i would still have a a couple of years mortage payments.

quantic

carslet wrote: »

i know what you mean, but it was always incase i needed to move or doing anything in an emergency for example i lost my job i would still have a a couple of years mortage payments.

I get why you think this is a good idea, but it isn't.

carslet

ThomasEvans wrote: »

in my opinion pay the debt off asap! If you don't feel like your going to lose your job right now then you will probably be able to save up faster not having to pay for those debts! Also i was in a similar position and i paid my debts off and honestly the weight off your shoulders feeling can't be beaten!

i am sure it was, thanks for advice, i think i will do this

foxgloves

In your situation, I would use the saved money to pay off all the debt in full. That will still leave you a bit of emergency money in case of dire emergencies. Then I'd make sure that there's a realistic budget in place to ensure that once paid off, the debt will not slowly start to accumulate again. If you can continue to pay a small sum each month into the emergency fund, that'd be really useful. There is no point paying interest to banks when you actually have the means to pay it all off in full. You wouldn't go out & poke a nice big wodge of banknotes down the nearest drain, so I'd get it sorted out now. Once the debt is paid off, it'll be the budgeting that keeps you straight (I'm speaking as reformed overspender & failed budgeter.....debt-free from May 2011, now budgeting every month like a good 'un & not intending to go back!!) I 2nd the poster who said what a great feeling it is paying it all off. Do it, & really enjoy the moment x

rdchick

Even £3000 is a pretty good nest egg, if you lost your job I am sure you wouldn't be out of work for years maybe a couple of weeks/ months max! xxx

brettcooper1

just to throw my hat in the ring as well...
once the debts are paid please PLEASE cut up those nasty credit cards or the temptation will be there to run them up again! if you feel the need for "emergencies" keep one account open but have the limit reduced to say £500 to remove temptation. and watch they dont slowly increase it. sneaky little devils these credit card companies!!

carslet

thank you for all your advice, i am going to do something about it.

think i will start with the cutting up of 2 of the cards, i thought i was in full control of it, then today i knew i was not

carslet

UPDATE
i know many of you wont need/want to know, but makes me feel better when i post :rotfl:

the debt and interest has shifted some what from the original
1. 5000 17.5 %
2. 3000 17.5%
3. 3000 0%

it was really this
1. 5000 17.5 %
2. 3000 22.5%
3. 3000 0%
4. 290 39% (store card i did not even know/forgot about , but was paying of the min payment every month so no real bad credit rating,
total £11,290 :eek:

now with shifting credit cards about and paying some extra i now have a plan.
Debt as from today
1. 6735 14.%
2. 500 22.5%
3. 2500 17.5%
4 0
total £9735
have £400 per month to pay all this off. i will never use a credit card again unless in a dire emergency thanks people this forum has really made me site up and realise the evilness of CC