Advice re: credit card debt

gavin79

hi all,
I have been reading this forum for a while but need some advice as things have got a bit more difficult recently! Through reckless (i admit) although gradual spending over the past few years i have accrued a significant amount of credit cad debt. Since the credit crunch i have not been able to get any loans / 0% interest credit cards to help refinance / move debt.

So in summary, i earn about 35,000 per year (living in london), 650 rent on a flat plus usual outgoings.

Major debts:
Santander loan (about 7.9% interest) 185 quid per month due to be paid off in october 2013 (not that long!)
MBNA credit card (13.5% interest) 9000 outstanding - paying off 180 per month (no longer allowed to use card or they would have hiked rates)
Unison (bank of scotland) credit card 14500 outstanding. 4500 is on balance transfers (about 5 to 7%) but the rest on 23.9%- paying 186 per month which is basically just the intererest.
also owe about 2500 on overdrafts (hsbc and santander current accounts)

Ideally I would like to cut my repayments per month but dont want to touch the loan as i bank with santander. When the loan is paid off I would then have the spare cash to pay the credit cards and get them down. Also the unision card rate is extortionate, would i have any luck negotiating a lower rate?

any thoughts / tips are welcome! thanks in advance

Gavin

mildredalien

Hi Gavin,

well done for starting to tackle your debts

Firstly I'd suggest filling out and posting a statement of affairs (SOA - link in the sticky). That way you can see all your income and outgoings and can get some advice about where you might be able to cut down and how to tackle your debts to pay them off ASAP. Also to make sure you are living within your means so you don't rack up any more debt!

Usually it's recommended you tackle the highest interest debt first and throw every spare penny at that - in your case probably the Unison card or the overdrafts depending on which one costs you more per month.

DVardysShadow

I suggest you have a look at this http://makesenseofcards.com/snowcalc.html - the snowball calculator. It will show you in what order you need to pay your debts off - and it will give you a debt free date. If the date looks like never or too long, then come back and seek advice on getting the debts paid off in an acceptable timescale.

gavin79

Thanks for your replies I will check these out. i suppose my problem is, i dont have hardly any spare money to throw at the highest debt (unison) to prioritise it. I want to get the loan paid off when its due to be next year and mbna take a fixed amount every month. If I miss one payment they will hike the rate.