Credit card debt help!

nathanv1991

Hi, I am struggling with my credit card debts, and I was just hoping that someone from here could give me a bit of advice. These are the credit cards that I have:

Tesco credit card: balance - £1,980, 0% interest until July 2015, then goes up to 18.9% interest. Minimum monthly repayment - £25.

Lloyds credit card: balance - £1,426, 0% interest until February 2017, then goes up to 18.9% interest. Minimum monthly repayment - £15.

Halifax Clarity Credit card: balance - £1,000, currently 17.9% interest. Minimum monthly repayment - £25.


I am in a real mess and dont know what to do. should I apply for another balance transfer card for the Halifax balance? should i try and get a card with a longer 0% period for the Tesco balance?

I can afford to repay a total of £140 per month, so how much should I pay off of each card?

Thank you.

[Deleted User]

Right now, you need to pay as much off the Halifax card as you can. Pay the minimum plus £1 on the others.

No reaon you couldn't apply for another BT card if you want. But perhaps consider your current limits in relation to your income. You won't get an endless supply of credit.

Foxy-Stoat_3

Are you spending on the cards, or are you purely paying down the debts?

You are probably over your 50% debt to gross salary ratio so try and pay down the highest interest rate card first, and pay the minimum of the interest free cards.

Good lucks

nathanv1991

I am no longer spending on the cards, just want to get the debts down as soon as possible really.

Foxy-Stoat_3

nathanv1991 wrote: »

I am no longer spending on the cards, just want to get the debts down as soon as possible really.

Thats a good plan. I would put your finances on an excel spreadsheet, make a monthly budget and stick to it. You will be able to see how long the credit card debt will take to pay down. I use a spreadsheet and its very handy to plan for stuff.

Assuming you have stopped booking 2 holidays a year then?



https://forums.moneysavingexpert.com/discussion/4879281

nathanv1991

Yes. that was before i decided to take on a £200 per month car loan, so doubt i will be having another holiday until my credit cards are paid off.

Thanks for the advice.

Paully232000

You could try to apply for another card with a long BT and transfer the halifax debt to it, but I would say if you apply for two and are rejected don't try again until you know why you have been rejected.
As it stands now I would pay the minimums on the two top cards and then every other last penny you can onto halifax (assuming you cant get another BT card, or until you get one).

Also I would take the advice given on the DFW board and post a statement of finances as from what you have said here it doesnt sound that awful, unless of course there is more to your debts/income etc than written here.

Foxy-Stoat_3

OP is probably is over the 50% debt/salary threshold so may find it difficult to get any more credit, but worth a try.

sunshinegirl66

Nathany !991 we have been in debt since 2007 with debts starting off at £37,000 which was a lightbulb moment and now we are down to £8600 and we only get old age pension every week.WE are paying off as much as we can afford and we hope to be debt free by December 2015.It is a never ending worry until it's paid off.Never again will we get into this situation but it's a challenge I want to win.

Archi_Bald

nathanv1991 wrote: »

I can afford to repay a total of £140 per month

One obvious option would be to figure out how you can increase your monthly payments. Post your completed SOA on the debt-free wannabe board for further comments.