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Time to take charge!
jo5ephedward5
Posts: 34 Forumite
Hello!
This is the first time I’ve posted on MSE in a long long time.
I'm in a position where I’ve got a few(!) debts, and whilst I have no problem managing at the moment I’m looking to shift them as they're costing me money I’d really like to be in a position to buy a house at some point in the future.
I’ve got a few accounts which have started to come to the end of their 0% agreements so it seems like time to prioritise them!
My current debts are as follows:
Barclaycard Initial £500 @ 0% [until Dec 2013] - £10 min payment
Barclaycard Platinum £3000 @ 0% [unit Oct 2014] - £60 min payment
Nationwide Card 3 £5300 @ 18.9% - £110 min payment
Nationwide Overdraft £1800 @ 18% - £0 min payment
Nationwide Personal Loan £8570 @ 13.9% - £290 min payment
Total £19170!
I have £600 a month to use towards the debts and I’ve just received a 6k bonus which will go towards them, [I’m expecting another 1k in dec and 1k in May so these can also go towards them but you can’t rely on anything with the word ‘bonus’ in the title so let’s forget the Dec & May payments for now].
I’m thinking the Nationwide Credit Card is looking like a prime candidate for a large chunk of the 6k as its the highest interest?
I can see the overdraft is close contender at face value but the account is always fluctuating between £1000+ credit and £2000 overdraft so the reality is it only costs an average of £5 a month to keep so I’m going to leave that for a while.
I’m thinking the biggest chunk of the 6k will go to the Nationwide Card as its costing me the most, I may as well use the ‘change’ from the 6k to clear the Barclaycard Initial account as the 0% interest is about to end on that and it’s another closed account.
I might start paying the minimum per month on the Barclaycard Platinum Account as it it’s 0% for another year [I have been paying off more than the min], this leaves me with about £540 a month which I can pay towards the Nationwide Loan with a £250 a month overpayment which should reduce the term considerably.
Does this sound viable or can people see a better way to deal with this?
J
This is the first time I’ve posted on MSE in a long long time.
I'm in a position where I’ve got a few(!) debts, and whilst I have no problem managing at the moment I’m looking to shift them as they're costing me money I’d really like to be in a position to buy a house at some point in the future.
I’ve got a few accounts which have started to come to the end of their 0% agreements so it seems like time to prioritise them!
My current debts are as follows:
Barclaycard Initial £500 @ 0% [until Dec 2013] - £10 min payment
Barclaycard Platinum £3000 @ 0% [unit Oct 2014] - £60 min payment
Nationwide Card 3 £5300 @ 18.9% - £110 min payment
Nationwide Overdraft £1800 @ 18% - £0 min payment
Nationwide Personal Loan £8570 @ 13.9% - £290 min payment
Total £19170!
I have £600 a month to use towards the debts and I’ve just received a 6k bonus which will go towards them, [I’m expecting another 1k in dec and 1k in May so these can also go towards them but you can’t rely on anything with the word ‘bonus’ in the title so let’s forget the Dec & May payments for now].
I’m thinking the Nationwide Credit Card is looking like a prime candidate for a large chunk of the 6k as its the highest interest?
I can see the overdraft is close contender at face value but the account is always fluctuating between £1000+ credit and £2000 overdraft so the reality is it only costs an average of £5 a month to keep so I’m going to leave that for a while.
I’m thinking the biggest chunk of the 6k will go to the Nationwide Card as its costing me the most, I may as well use the ‘change’ from the 6k to clear the Barclaycard Initial account as the 0% interest is about to end on that and it’s another closed account.
I might start paying the minimum per month on the Barclaycard Platinum Account as it it’s 0% for another year [I have been paying off more than the min], this leaves me with about £540 a month which I can pay towards the Nationwide Loan with a £250 a month overpayment which should reduce the term considerably.
Does this sound viable or can people see a better way to deal with this?
J
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