📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Need to amalgamate debts to reduce interest fees?

Hi

I currently have an overdraft debt of £1600 and a credit card debt of £1200. My bank is now changing my account from a graduate account and thus the interest on the overdraft is going to increase. The credit card is currently 0% interest but this ends in August 2012. I am wondering whether it would be a good idea to amalgamate these two debts on to 1 single credit card to reduce the amount i pay in interest. Can anyone advise me whether this would be a good idea and how it would work? If I do this do I have to agree a minimum repayment amount for each month with the new credit card company? Is there any way I can do this for free/no charge or will there always be a charge for this? Will the 'cheapest card calculator' on this site help me? Any ideas of what card to go for?

Any help/advice is much appreciated as I am quite a novice and finding it all a bit baffling.

Thanks in advance.

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    How much are you reducing the debt by each month?

    It's often better to focus on becoming debt free rather than shifting the debt around.
  • Ivan pay a minimum of £350 per month and a maximum of £500 per month. I aim to pay the maximum as much as possible so the debt should be cleared within a year.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    In that case don't shift anything around.

    Pay the maximum you can towards interest charging debt. Aim for debt free by Christmas!
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 355.8K Banking & Borrowing
  • 254.9K Reduce Debt & Boost Income
  • 456.2K Spending & Discounts
  • 248.4K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 179K Life & Family
  • 263.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.