Seeking guidance regarding Credit Card debts

pumbaa

I'm looking for a steer and some guidance regarding paying down exisiting credit card debts.

I currently have 4 credit cards, two with Barclaycard, one Halifax and one Nationwide. All were originally 0% BT deals which have long expired. Total debt across all cards is just shy of £20,000, and I'm currently paying out circa £500 per month yet not paying down the debt. Three of the four cards are close to the credit limit.

I've really want to get this debt down, significantly. I want to chop it by at least a third in 12 months. If I can better that, I'll be even happier!

My problem is not really knowing where to go from here. Checking the eligibility tracker for most of the 0% deals, my chances are at best 40% of being accepted. Having been refused several cards previously, I don't really want to hit my credit file.

Any help or guidance would be very gratefully accepted. Thanks in advance.

double_mummy

post an SOA and we can see if we can help

what are the totals and the interest rates and min payments on the cards? are the cards with the original creditors?

pumbaa

Pardon my ignorance, whats an SOA?

Thanks for the offer of help though, very much appreciated. I'll post fuller details tonight

indesisiv

pumbaa wrote: »

Pardon my ignorance, whats an SOA?

An SOA is a statement of affairs, and list all income and expendature. THis helps people get an idea of where you can make savings. Link here

Threre is also a snowball calculator on that site, which will show off the fastest order to pay back the cards.

DebtFree2012

With circa 20k of debt you will need a cracking income to be given 0% deal to allow you to shift that across. I speak from experience.

Personally I would pay down the highest interst card as much as you can then they may offer you 0% on the outstanding credit limit amount which you can then move another (partial) card over to. It's a long hard slog - I started mine years ago. Good Luck.

stickandmove

So, you're essentially paying interest only each month?! Effectively then, the credit card companies are robbing you as far as I'm concerned. 500 pounds a month interest!

You have to find a way to stop paying so much interest!

It sounds like you want to pay everything back and avoid compromising your credit rating.

One possible option is to get a 20K loan from your bank to pay off the credit cards and then pay back the bank loan. You'll still pay interest on the bank loan, but it will be much lower than the credit cards.

sourcrates

Not entirely sure you can have things both ways.


Your only making minimum payments, so only paying off the interest, and not touching the capital, yet you say you cant afford any more a month, yet you don't want to trash your credit file ?


Hmmm, the reality is, if you cant up your payments at all, or get any new 0 % deals, you will HAVE to default, I see no other way.
If you only have 40% chance of a new 0% credit card, the chances of getting a 20 grand consolidation loan are nil.


Have you considered a debt management plan of some kind ? because I suspect you are yet to have your "light bulb moment" in connection to these debts.