Got declined for a 0% credit card - Damn it :(

ilovelondontown

In my daily quest to reduce my this debt, I decided to apply for a new 0% credit card to do a balance transfer on to as I currently pay about £20 a month interest on my current credit card. It got rejected. I'm not overly worried since I haven't got any need for a good credit rating at the moment but it was disappointing all the same.

Anyhow, now I know I'm stuck with the card I have at the moment, which I believe is on an apr of about 16%, I wanted to see how else I could tackle the other bits of debt I have. Do any of these suggestions sound like a good idea?

1) Pay off my Next account - (current balance £430) with my credit card and make the additional payments to my credit card every month instead of to Next? The APR on the Next account is 25%.

2) Call the bank every pay day and reduce my overdraft by £25. My current overdraft is £750. This is something I could stop on months that were tight.

3) I read somewhere on the MSE website that you should always pay off debt before you start to save, and I don't have ANY savings, should I stick with this plan or try and start saving anyway?

jessie4109

Are you currently being charged for your overdraft?

ilovelondontown

My overdraft fees are really low, like maybe £2 a month

matttye

Just because you've been rejected for one, doesn't mean you will be rejected for another. If you've only made one application for credit recently another application wouldn't really hurt. Just don't make loads in a short space of time. Wherever possible you should use quotation searches or pre-application checks so that it gives you an idea before an actual credit check is carried out.

Overdrafts are repayable on demand so I'd recommend getting that down, then get your other debts down in order of highest to lowest interest.

eyeopener2

Have you had any problems with your overdraft? Going over the limit? If not, get rid of the next card as soon as you can, and ,rather than paying down the overdraft, get stuck into that credit card especially if you transfer the next balance.