what should i do???? advice needed

RAS

So pay off card 2 immediately and pay the minimums on the other cards.

Check out the snowball on www.whatsthecost.com to see how to pay debt off most effectively.

bargainbetty

I would also pay off #3, and then contact them to sort out a low-life-of-balance or a 0% transfer, and then switch as much of the #1 onto it as possible.

Actually, no, I'd use the savings to pay off the debt - you are spending more on interest than you are earning. I do see why you want a cushion, but that's practically a bouncy castle you have there. How about working out six months of expenses, and then using the rest to pay off the debts?

Good luck

c_denise

agree with everyone to pay off the CC if you have the funds especially the high interest ones. Some do say to keep 3 times your monthy wages for emergency. Maybe using that "calculation" might help.

HappyMJ

carslet wrote: »

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

I still don't understand why you don't pay the lot off. CC's are not evil. They can be used in case of emergency. They can be used to replace a dead fridge or washing machine and pay for it over the next 12 months. If you don't have a couple of hundred saved up then all the food purchased must be tinned and not perishable or the washing must be done by hand. Use a CC and you can refridgerate food and use a washing machine.

They can also be used as a budgeting tool. If you use a credit card and pay it off in full every month without fail then you can earn cash back and pay no interest. If you keep the credit cards then you still have access to the credit so paying them off will save you money and you still have your emergency credit available.

It has been said you should have access to 3 months worth of spending money available. This does not have to be cash savings it can be access to a credit card.

carslet

thanks to you all, i am looking at all your answers and taking them all in,

i think i will pay off cards 2 and 3 with savings, and the 400 permonth for #1

thanks again everyone wish i have got here sooner

HappyMJ

carslet wrote: »

thanks to you all, i am looking at all your answers and taking them all in,

i think i will pay off cards 2 and 3 with savings, and the 400 permonth for #1

thanks again everyone wish i have got here sooner

Personally if you are scared of losing access to all your savings then I'd increase £400 to £600 and clear it within 12 months.

You should use another cleared credit card to buy stuff with and pay it off in full every month to get a good credit score.

LittleMissGiggles123

I would pay it off with the savings & just start saving again. You'd be debt free so would be able to put more money in to savings anyway.

pelirocco

rdchick wrote: »

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

Good post , but flawed math

Its still only costing him 17.5% even though the debt is split over a few different debts

rising_from_the_ashes

If you clear the debts in full (as others have said, you're paying loads more in interest than you're getting on the savings) - you'll have the money spare each month to rebuild the savings...