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.

sourcrates

Hi, :wave:


I think before anyone can give you definitive answers on this, you need to fill in a S.O.E (statement of affairs) available in the stickies at the top of the forum.


Once you have done that people can see what money you have coming in, and expenses going out, they will then be able to give you specific advice on what options there are for you.

~Beanie~

What exactly are you in a real mess with? You don't owe a massive amount in the grand scheme of things and you have said that you can afford to pay £140 per month which is more than the minimum.

I would pay the minimum on the Tesco and Lloyds cards for now and pay the other £100 off the Halifax. Worry about the Tesco 0% expiring a bit nearer the time.

sourcrates

~Beanie~ wrote: »

What exactly are you in a real mess with? You don't owe a massive amount in the grand scheme of things and you have said that you can afford to pay £140 per month which is more than the minimum.

I thought the same thing, I`m assuming he has other debts possibly ?
Maybe give us some more info OP.

moohound

I second what Beanie has written, but would add, that you stop spending on the cards as well if you have not already done so.

nathanv1991

Sorry about the lack of information. I also have a car loan which I pay £200 per month. This is a quick summary of my income and expenses per month:

income

Salary - £1,000

expenses

Car loan - £200
rent & bills etc. - £350
Phone contract - £35
Car insurance - £60
Fuel costs - £100
Food - £100
Bank charges - £15

Total £860

This leaves me with around £140 per month to repay the credit cards. I am just a little worried that I have no savings or spare cash in case of emergencies. For example if something went wrong with my car.

I understand that this may seem small compared to other peoples debts, but with my income being so low I am just worried that I will miss payments.

redcard

The reason you're in a mess is because you have a car you can't afford.

£200 a month must have got you something pretty decent.

moohound

First of all, well done for getting help before it gets worse, debt can be downward spiral, believe me!

It's good that you are scared, in a way, as it will spur you into better habits.

When does the car loan end?

Have your tried putting the figures in the snowball calculator?

Fuel is high (3x mine) are all journeys necessary?, remember every time you drive you are making yourself poorer.

Car insurance is high, the burden of youth?

You could try and hold back just £10 a month as a 'baby' emergency fund, also its gets you in the mind set of not spending every available penny that you get your hands on.

Have you any stuff you don't need that you could e-bay or get rid of somehow to generate some cash, I don't mean sell your treasured possessions that you actually use, but lots of people have old phones/tech/gadgets/DVDs etc shoved in drawers, this could start your emergency funds as well.

What is the bank charge for, overdraft/fee paying account?

nathanv1991

Thanks for the advice.

I do realise that the car loan I have taken on is a little high, but as is probably quite common, when I worked my income and outgoings out I believed that I could afford it, but hadnt taken into account added fuel costs and insurance costs etc.

My insurance is pretty high, as I am only 23, but it is up for renewal next month. The renewal came through at the same price, but I got a quote that was £120 less per year, so that should save me £10 per month. As for the fuel, i work 12 miles away from my home, so most of the fuel costs are unavoidable.

I do not really have anything worth selling, other than perhaps my dvd collection (probably around 80-100). Do you think I am better off using any spare money I get to pay the credit cards off, or should I keep some spare cash aside?

Thanks.

asparagus1968

welcome.
here's what I'd do.....


chop up the credit cards
see if there is any way of getting as much as possible onto 0%
set up a standing order to another account to get an emergency fund going -£10/£20 a month.put the card to this in a hiding place at home, don't keep it in a wallet!
pay minimums to all o% cards, and other available money to the card charging interest until it's paid off.


Also, sort out the bank charges-is this money you owe or a monthly fee for benefits?


Also, have a look at the "Up Your Income" board, you need to try and earn more and spend less.
?over-time ?weekend job ?dog walking etc etc.


well done for facing this now, this is curable!

chrisfreelander54

nathanv1991 wrote: »

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:

Firstly, cut up all credit cards to stop any futher spending on them.


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

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

Halifax Clarity Credit card: balance - £1,000, currently 17.9% interest. Minimum monthly repayment - £25. <<< Try to balance transfer to 0% if you can. I would advise using Martins eligibilty checker tool by using the following link below, as this only does a soft search and compares a wide range of cards all at the same time.

https://creditcards.moneysavingexpert.com/?balance-transfer

Once you have all credit card debt on 0% then throw any extra cash at your overdraught as this can be called back by the bank at anytime, leaving you in a right mess.

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.

nathanv1991 wrote: »

Sorry about the lack of information. I also have a car loan which I pay £200 per month. This is a quick summary of my income and expenses per month:

income

Salary - £1,000

expenses

Car loan - £200 <<< How long untill this is paid?
rent & bills etc. - £350
Phone contract - £35 <<< Change to pay as you go instead.
Car insurance - £60
Fuel costs - £100 <<< Anyway to reduce, maybe car share with a work collegue?
Food - £100 <<< Is this for one person, if so does this include eating out?
Bank charges - £15 <<< Whats this for?

Total £860

This leaves me with around £140 per month to repay the credit cards. I am just a little worried that I have no savings or spare cash in case of emergencies. For example if something went wrong with my car.

I understand that this may seem small compared to other peoples debts, but with my income being so low I am just worried that I will miss payments.

Made a few comments above in red.