What Next?

Ashingtonian

Power_Kitten wrote: »

We never had a solid plan as such. He was starting this new job, for which he is actually self-employed, so we didn't know what the income was going to be as it's all dependent on what he's allocated. What I said at the time was make sure he gives me the money for at least the minimum, and give me more towards it when he can.

Now I've lived with him for a few months, I can see that he is terrible with money, and no other sums other than this weekly £30 have been offered. Also, a friend of his told me he owes him quite a lot and that I probably won't see it. Obviously this was not a good thing to hear!

I'd write it off now and take anything he pays you back in the future as a bonus. Sorry to be blunt but its probably what everyone else reading your posts will think.

[Deleted User]

JimmyTheWig wrote: »

Then I think you two need to have a talk about money...

Oh God, I know. I keep trying. It's in one ear and out the other. I am often tempted to ask his mum to raise him again, as this chap simply cannot look after himself!

As for writing it off, I'm taking that attitude towards it now, yes. Hence why I'd like to know what I should do with these cards I have.

[Deleted User]

I think I'm going to offer to supervise his finances later. Instruct him to take a set amount of cash out of his wages per week, make sure the rest goes into a saving account, what's left after his portion of the bills goes straight to Vanquis. All very patronising, but is that unreasonable when he owes me so much? He might actually thank me later, learning how to keep a tight rein on his money this way. And if he says no, I'll have a better idea of what his attitude to the debt is.

But anyway, yes, the raison d'être for this thread is what to do with my cards!

JimmyTheWig

What's the APR on the Vanquis, OP?

[Deleted User]

It doesn't say on the statements, but rough calculation tells me approximately 34%.

fracturedsun

Do you know what the APR on BT on your cap 1 card is after the 0% period ends? And are you allowed to do another BT on it. It may be lower than the interest on your Vanquis (don't forget to calculate in the fee) and thus worth transferring what you can on that once you have cleared the existing balance.

Any chance of getting another 0% card.... even if you can't transfer over the full amount having some of it interest free will decrease the total you have to pay?

On another note. How much more than the minimum is the £30 a week he's paying you, and is it decreasing the balance significantly? If he can go up even by £5 or £10 a week it can make a big difference. If you are going to start doing BT etc to help clear the debt. FWIW I would suggest you both sit down and work out exactly what he already owes what the interest payments on that will be and keep track on what he pays and how that is effecting the total. That way there can be no question or resentment further down the line when he thinks it should have been fully paid and there's still a chunk more left to go. (Particularly if he isn't used to debt, it can come as a nasty shock to people how much more they actually have to pay back).

[Deleted User]

Well, last night I asked that he allow me to take over his finances until this is sorted, and he said yes. So that's going to make things a lot easier. Every penny spare after rent/bills/living is going to go to the card. I think around seven months is achievable this way, whereas the £30 was going to take more like five years.

But in the meantime, getting interest down would be nice as it's less for him to pay. (Or indeed me, if something happens.) Yes, he was quite shocked at how much more is having to be paid back!

The Capital One APR will be 30.34%. No further offers are available, although presumably I'll be able to transfer to them anyhow.

Another 0% deal would be fab, but I don't know where best to try for it with my circumstances. Hoping someone has a better idea than me!

JimmyTheWig

With current unsecured credit card debt of 35% of annual income, I'm not convinced that you'll be getting any decent 0% offers. I think that you're stuck with the cards that you have. Others may have different ideas, though.


I think you have two choices...

1. Pay the £1000 that you intended to clear the Capital One card with off the Vanquis balance on the basis that it is better to pay a 34% debt than a 30.34% debt. If you do this, then make the payment today. Each day you leave it will cost about £1 in interest.

2. Use the £1000 to pay off the Capital One card. Then ask Capital One what deal they will give you for another balance transfer. You say no further offers are available, but is that because you are in the middle of an offer already?
Would they tell you over the phone now if you would qualify for another offer once you'd paid this one off?
Does anyone else have any experience of what Capital One have done in similar situations in the past?
If they don't do an offer, it may be worth doing the transfer anyway depending on the fee. Or you may choose to hold out for an offer from them. Again, anyone had anything similar?

[Deleted User]

No, I don't see myself getting any offers as things stand, either.

I'm thinking option two is better, just to keep things 'tidy'. Otherwise, it'll be having his debt spread across two cards. If I need to make an emergency purchase, it's much easier in terms of calculations to be completely separate, so as not to merge our debts.

Capital One didn't specify, just a generic response about how if there are further offers, they'll let me know. I'm not sure I'll get more out of them if I phone. But I guess regardless, do what I'm doing and wait and see.

Perhaps I'll be more eligible for a transfer offer after Capital One's paid up and empty for a couple of months?

JimmyTheWig

Power_Kitten wrote: »

Perhaps I'll be more eligible for a transfer offer after Capital One's paid up and empty for a couple of months?

That would be my hope.
If you want to go the option 2 route anyway then if you do get such an offer you will be in a position to take it...