In debt a few cards and loan total 20 k -advice

JuicyJesus

fozmcfc's post is excellent. Do what he says.

sistafromanothermista

Firstly i agree with the posts above.
One look at my signature tells you i was in the same place a year ago.
With both myself and DH having great credit worthiness we have managed to keep switching to new 0% deals when one runs out and throw every available penny at our debt.
It can be done, we also have 2 children so to realise we were more than 20k :eek: in debt was a shocker.

I wouldn't have thought you would be approved for a loan, plus, by doing it the hard way and cutting back to pay more off, you actually learn a lesson never to do it again! With a loan, you pay off the cards then slowly spend.....spend.....spend and bang, you're back to square one!

worried48

CKhalvashi wrote: »

The cheapest way to do this may be to chuck minimum payment + £1 at everything (plus loan payment), then put anything over your budget at the highest rate debt each month.

Just curious - why minimum payment plus £1?

andyuk01

worried48 wrote: »

Just curious - why minimum payment plus £1?

Some credit card companies report minimum payments to the CRA's via a special flag

Could be interpreted as a sign of financial hardship if you are only making the minimum payment

Not sure how much of an impact it actually has but its easily avoided by making the minimum payment + £1 each month

YoungBusinessman

So you are paying more than the minimum payment each month so looks like you are actually trying to pay it off.

CKhalvashi

andyuk01 wrote: »

Some credit card companies report minimum payments to the CRA's via a special flag

Could be interpreted as a sign of financial hardship if you are only making the minimum payment

Not sure how much of an impact it actually has but its easily avoided by making the minimum payment + £1 each month

Thanks for that!

We're not sure of the implications of the flag, but it's our advice, too within my (voluntary) debt work.

CK