Getting into a pickle with some credit card and overdraft debt - help!

ManchegoMan

Hi,
First some details:
£3800 on barclaycard 0% until next april, credit limit is 5k with 4.5k limit for transfers. Currently paying £100 pm which is just over the minimum payment.
£2300 on my wife's hsbc CC 19.9%.
£1400 on my hsbc CC 12.9%
£2800 overdraft split between two accounts (wife and me). Salaries go into these two accounts monthly.

Ok, made some of the worst and stupid decisions over the last year when buying my 1st house as I was £5k short of getting enough deposit to have enough for a 85% ltv mortgage (my view at the time was that a lower rate mortgage would be better short and long term although I am unsure if I was right given the following circumstances). So we did our monthly spending on the wife and my CCs (both hsbc) to free up cash for the deposit. I've also had a 2nd child born around the same time which obviously eats up money like no tomorrow.

So here I am now in this situation where I thought I would just go and apply for a loan to pay all the CC debt and overdraft off over roughly a 5 year period, but I'm trying to savvy up on how I can avoid getting a consolidation loan and work out how to pay off my debt using CC transfers etc.

A few details about income - between us we bring home £4.5k. Whats killing us is the monthly childcare costs (£1000+ pm).
I'd like some advice on what to do as a priority because I dont really know the ins and outs of things like how many 0% BT CCs can I hold at any one time or if I could get a 0% purchases CC to clear the overdraft problem.
So how unlikely is it to be given another 0% card whether it be for purchases or BTs? Also I dont want to hammer my credit score to a point wher I wont get credit in the future.

I was thinking of applying for another 0% BT card to transfer the hsbc card debt over to it. Then get a 0% on purchases card and free up cash to pay off the overdraft.
Or is this plan flawed?

Thanks, Steve.

Cameron1590_2

Hi Steve,

Okay well here is what I would do.

You need to draw up a budget, get your spending right down, think could you start walking or cycling to work to save on fuel? Do you really need that sky tv package costing £50 a month? Really try and cut your spending down make a budget and stick to it.

Personally I would shift all card debts onto a balance transfer card remember any current debt cant be shifted to the same provider (barlcays debt to a barclay card etc).

Mse have a free soft search tool to see what cards you are likely to be accepted for so might be worth a shot before you apply and waste a credit search.

As for the od I think you are best working out your budget and then throwing as much money as you can at the od and then the bt card with a total debt of £7500.