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Have no idea whats the best way to manage my debt!
Oldmacdonald
Posts: 14 Forumite
Hi guys, hope you can help!
I have three types of debt
1. I have an overdraft of approx £700
2. Credit card of £600
3. Car finance, £2000 remaining.
I'm not as worried about the car finance, I'm paying £200 off per month no problem.
The credit card and overdraft I'd really like to clear and put into some sort of loan account/credit card and set a monthly repayment over about 18 months.
What would the best option be?
Thanks so much everyone!
I have three types of debt
1. I have an overdraft of approx £700
2. Credit card of £600
3. Car finance, £2000 remaining.
I'm not as worried about the car finance, I'm paying £200 off per month no problem.
The credit card and overdraft I'd really like to clear and put into some sort of loan account/credit card and set a monthly repayment over about 18 months.
What would the best option be?
Thanks so much everyone!
0
Comments
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Hi, what are the interest rates on the CC and the loan, and what does the overdraft cost you a month in few and interest?
Are you paying the minimum on the CC?
A small consolidation loan of £1300 is likely to have high interest, and runs the risk of building up a CC balance and OD again, so think carefully about going down that route.ISA £1675
MiniMoohound savings £3685.86 :T Plus £3800 CTF 
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 200 -
Credit card is 20%
Paying more than the minimum each month.
Don't think the overdraft is costing me anything, it's back into very slight credit at every payday.
A quote from my bank for a loan was 29% APR. Which seems completely ridiculous!0 -
Try putting the numbers into the snowball calculator, when does the car finance end?ISA £1675MiniMoohound savings £3685.86 :T Plus £3800 CTF
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 200 -
If you do decide to get a consolidation loan, phone up your credit card company first and close your account. The balance and monthly payments will remain, but you won't be able to spend on it. I wish I knew I could do that two years ago, instead I maxed them out again. :eek:0
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What about a 0% balance transfer CC to transfer you Credit Card and Overdraft onto?0
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edinburghlad wrote: »What about a 0% balance transfer CC to transfer you Credit Card and Overdraft onto?
That was my initial thoughts, but questioned it when no one suggested it on here!0 -
Oldmacdonald wrote: »That was my initial thoughts, but questioned it when no one suggested it on here!
The trick is to make sure you cancel your other card and overdraft as soon as they are clear.
I know barclaycard is doing 0% for 33 months at the moment.
33 months @ £40 would clear the balance :beer:0 -
Or £75 per month over 18 months (which includes worst case 4% balance transfer fee)0
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