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I want to be debt free!! Help!

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  • angel31572
    angel31572 Posts: 123 Forumite
    Aahh..I'm a bit slow tonight..looong week etc. Thanks for dropping by. :D
  • CHIHUAHUA
    CHIHUAHUA Posts: 214 Forumite
    angel31572 wrote: »
    Hi everyone...this is long overdue but at least I am here now!

    I really need some good advice so I hope you someone can help. I will try to be as brief and clear as possible.

    I earn £32,000 a year, clearing £1900 a month

    My mortgage and monthly DDs amount to around £1200

    Add onto that monthly living expenses, I always spend more than I am earning. this is becasue of credit card debt.

    I have an existing loan of £7000 and credit cards totalling £6500

    I pay around £400 a month to the 3 cards and the balance is not going down..at all!

    So, I have taken on extra work, bringing in an extra £300-£600 a month after tax. In the meantime, I have been offered a new loan to pay off the credit cards so that at least I will see the debt going down.

    I hope this is clear?

    Am I doing the right thing?


    Help!!


    Hi Angel - it would be expensive to take out another loan to pay off those cards - have you thought about going for a lifetime balance transfer card with a low interest rate to transfer the credit card balance of 6500 to? - with your salary you should have no prob in getting replacement cheaper cards and although you'll still be paying out the same amount each month you'll reduce the total debt quicker - see the credit card bit of this site for links to lifetime BT credit cards- as far as the loan goes unless it's got an early repayment facility it prob won't be worth moving it somewhere else as they'll clobber you with most of the projected interest :mad:
    at the end of the day it will take you a while to pay off 13500 but it can be done - think of the loan as a done deal but the cards could be dealt with at 373 p/m in 18 months at 3.9%

    HTH
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