Stuck in credit card nightmare-any advise appreciated!

Ruthydevil

I apologise in advance for the long confusing thread! I'm a little bit stumped as to how to sort my financial situation and wondered if anyone could provide any advice!

Basically I have 2 credit cards, 1 with barclaycard with approx 5k debt, 1 with MBNA with approx 3.5k debt and a loan with Barclays with approx 2k debt. The barclays loan is over 4 years, I have had it for a year and pay about 67 a month, not too sure on the interest rate. The MBNA card was a balance transfer product and has a 0% interest free rate for about another 18 months and I usually just make the minimum payment about 40 a month. The problem is my Barclaycard, the 0% interest rate ran out about a month ago and although I try to pay off about 150 a month to clear this one quicker, about half this amount is now being swallowed by interest charges! I was hesitant to apply for yet another card to balance transfer on to as it's likely I'll get refused so my husband agreed to apply for a barclaycard to transfer my balance on to so we could still get 0% rate. Card has now arrived and it's transpired I can't transfer balance barclaycard to barclaycard! Unsure as to what to do next as cannot extend limit on MBNA and promotional period for 0% balance transfer has expired anyway. I want to pay these 3 debts off as quick as possible, paying as little interest as possible without affecting my credit score anymore than I may have already!! I can pay around 250-300 per month towards debts. Any suggestions?! Thanks in advance!

[Deleted User]

Could your husband get a non-Barclaycard 0% card?

Monkeyballs

Hi,

You sound like you're in a mess and now might be the time to look at debt busting as opposed to doing more juggling...

I'd get an SOA posted up on the Debt free wannabe board for advice on your spending and budgeting, etc.

MB

Ruthydevil

Sorry I'm fairly new to this- what is an SOA? Thanks for the advice.

Tixy

A SoA is a statement of affairs. It basically a financial snapshot showing monthly income/expenditure before debt repayments and a list of debts with repayments and interest rates. There are specific calculators for this on the debt free wannabe section.

The idea being once you see it all written down you may spot ways to increase your debt repayments or posting it up on the debt free section allows people to help make suggestions on changes you could make and the best way to tackle your debts.

This thread explains - DFW Newbies: Where to start, Challenges, SOAs, Nerds & Debt Free Roll of Honour!

Monkeyballs

Oops, sorry... Like Tixy says

MB

BillJones

Ruthydevil wrote: »

I apologise in advance for the long confusing thread! I'm a little bit stumped as to how to sort my financial situation and wondered if anyone could provide any advice!...

...I can pay around 250-300 per month towards debts. Any suggestions?! Thanks in advance!

One thing that always works is cutting down on your spending, and finding ways to increase your income.

I know that people are generally looking for "tips and tricks" that involve little to no effort, but while people may suggest the odd one to knock down the interest a little, it's only a combination of the above that will get you out of debt in a decent timeframe.

If you post a statement of affairs, listing income and outgoings, then I bet that people will be able to come up with some sensible suggestions that will free up a decent enough amount each month that you can start paying down your debt far more quickly than you think.

nobbysn*ts

I would suggest moving the Barclaycard debt somewhere else as a priority, rather than trying to pay it off, as even at the £300 a month the interest will add a huge amount. Another brand of credit card would be my first choice, Halifax maybe? It could also be worth a call to the MBNA so see if they will do you a deal, as they are normally happier to extend your limit to let you transfer an existing card, rather than give you new credit. But obviously you need to make sure you don't jeopardise your existing deal. Then, as others suggest, pay off the maximum you can, and bring the debt down as quickly as you can. 0% cards are good, (I have several) but only really if you have the debt covered by the money in the bank earning interest until you need to give it back to them. I don't know how you normally spend, but I put everything on my 'normal' credit card, which I pay off monthly in full. Usually about £1000 a month. If you do the same, between you can transfer this months debt off your 'normal' cards, and preload it for next months spend, by transferring it onto your husbands new Barclaycard. This would free up (in my case) £2k to pay off part of the your old Barclaycard balance over the coming month or two.