Trying to reduce interest..but not getting much help!

Buster1874

Hello. Over the last 10 years, I had been paying a lot of maintenance on my children, university costs etc, which have all come to an end now, as my daughters have all now become self-sufficient. However, it has left me with a lot of debt built up on three credit cards, not far short of £30k in total. My outgoings have reduced considerably since this time last year by nearly £1000 a month, so after all my mortgage payments and other necessities have been paid, I have a decent surplus at last. I've been following the advice on here about the "credit card shuffle" to reduce interest payments. One card I have a very good rate on, better than an overdraft, the other a typical rate of 16.9% and the third, is over 20% which I need to prioritise..(BTW Card 1 and Card 3 are both with the same provider..Barclaycard although the third car used to be an Egg Card till BC took it over). I have been in contact with card 2 and card 3 to ask for a reduction in interest rate and failed there. I've also applied for a loan to pay Card 3 off, but was turned down. So where do I go from here to reduce the level of interest, can anybody advise? Thanks.

R_P_W

If you can afford the payments why would they reduce the interest? Best thing to do is pay as much off as quickly as possible. You won't get a loan I would think as you total debt would be too high - unless your earnings are about 70-80k per year.

Trajal

I would try to open a balance transfer card for 0% interest on the highest.

If that doesn't work (again possibly due to too much debt) then you will have to wait until that first card is paid off, closed down and then apply for a 0% BT card from the other one.

Tixy

Do you have any unused credit available on the cheapest rate card?

If so then you could "slow stooze" some money on to that card fromt the most expensive.

Slow stoozing is where you buy your normal everyday purchases on the cheap card, and then use the money left in your bank account to pay off the higher rate card, it requires some discipline but can help if you are unable to get a new lower rate card.

Buster1874

Thanks Tixy..I do that but never heard it called that before. (sounds like a smoochy dance!) If I use a card I use the one with the lowest rate of interest (it is actually better than my overdraft arrangement), but pay off the same amount on the high card.