Money troubles, please help

robcad

I've got £2371.36 on a credit card. My interest is now 30% (It went up in February from 18%). I've been paying £100 a month, but my minimum repayment is about £50... so half of what I'm putting in! I've tried to switch the balance to another bank with 0% interest for 20 months, but got declined for all of them.

Options:
- Whack my repayments up to £200. I'd pay it off within 15 months and pay a total of about £500 interest (used an online interest calculator).
- Get a loan of the amount... pay off the debt and have loan repayments of about £120 a month with 14.9% interest. Working out at about £400 in total I would pay. BUT thats over 24months so I'm stuck in a contract for 2 years.

I was sure a loan would be the way to go BUT now I'm thinking I'll just pay as much as I can each month off the credit card in order to force the interest total down month by month.

My current account is well in an overdraft, but I’m managing and slowing getting back to the black. Please advise as to what option to go with.

Thanks you in advance.

lucielle

Hello, well done for posting. Swapping one debt for another is never a good idea and it leaves you open to temptation. Use the snowball calculator for motivation (sorry useless at links) and throw as much as you can at the debt.

Good luck.
L