Paying off credit cards

farukh36

Hi Guys,


I have the following credit card debts outstanding and was wondering how I shall pay them off.


Credit Card 1 mbna £5870
Credit Card 2 Asda £1900
Credit Card 3 Bank of Scotland £570


My present situation is that I have £8000 in savings but I am currently looking for work.


Any help or advice would be appreciated.


P.S I have £1000 in emergency fund


Regards


Farukh

Tixy

It is difficult to give much advice based on what you have posted.

Do you mean you want to use the £8k savings towards the debts and don't know how much to pay off each?


Or do you mean that you are struggling to make repayments at all and need the £8k for living costs?

If it is the first then its best to pay off the most expensive first, so you'd need to find out the APRs on each account and pay off the 2 most expensive in full and the remainder to the cheapest card.

dealme

Maybe keep paying the minimum amount for all
so that you can deplete the £8k as slowly as possible.

But yes, more info required for a better suggestion.

Twiglet21

I agree that more information is required here but if I were you I would continue to make the minimum payments for each card until I was in work when I could then consider making the larger payments. It would probably be silly to spend all of your savings on credit cards because if you don't get to work you are likely to simply begin using the card again and you're back to square one.

The_Boss

Yeah, agree re. the work situation although I'd be paying more than the minimum. OP - you may also want to just wipe out the BoS card anyway though to get it paid off and focussing on the others, prioritising by the higher APR, once you've got work.

farukh36

Hi Guys,
I receive some money from rental income which covers my main expenses. I was thinking of calling virgin mbna and asking for a settlement figure. Then to pay the remaining when i am in work.

Any further comments or suggestions would be greatly appreciated.

Regards

Farukh

The_Boss

farukh36 wrote: »

Hi Guys,
I receive some money from rental income which covers my main expenses. I was thinking of calling virgin mbna and asking for a settlement figure. Then to pay the remaining when i am in work.

Any further comments or suggestions would be greatly appreciated.

Regards

Farukh

Whoa - if you say you can't pay the whole lot and ask for a settlement fee then you're risking your future credit worthiness. It will be marked on your credit file for the next 6 years and future lenders will see it.