Advice on debt

Gwenig3

My husband has a £7500 debt on his credit card he uses for his business. We have just reach the limit due to large repair on my car. We have looked at option of
A- business loan with Barclays for above amount. Never had a loan for business in past as I helped with start up.
B- balance transfer to Barclays platinum credit card. 0% on transfer. I assume he will have to pay minimum of 2.25%
C- personal loan with Barclays

I think his best option would be credit card. But would accept any advice. We both work and he has regular income from business.

Pixie5740

Option B is probably the cheapest way to do it although you might find a better 0% BT card than the Barclays Platinum CC.

Gwenig3

Thanks. He currently has a ASDA credit card and he pays almost £900 a month on this but with the interest he is only clearing about £90 of debt. He uses the card mainly for fuel. We have been foolish with it but it's saved our bacon to following a theft from his van. Looked at Barclays as it have longest 0% balance transfer period. I will look at other cards. Aim is to change to clear debt. By continually transferring.

Foxy-Stoat_3

Gwenig3 wrote: »

Thanks. He currently has a ASDA credit card and he pays almost £900 a month on this but with the interest he is only clearing about £90 of debt. I will look at other cards. Aim is to change to clear debt. By continually transferring.

How much interest a month? £810, whats the balance on this card?

Sounds like your in a spiral, you cannot borrow your way out of debt, you need to get everything on as lower interest as you can and tackle the higher interest cards first.

Gwenig3

The balance is 7500. He buys his fuel on it and then pays it back each month. But with the interest adding on he is only paying 90 off the bill monthly. Going to sit down tonight and look at options.

Foxy-Stoat_3

Arrr, that makes sense. He is probably spending £700-£800 a month on it using it like an overdraft.

Good luck. Sounds like what has to happen is what has already been said, transfer the lot to a 0% card but then reduce the balance to £1000. If he spends say £700 a month on fuel and pays £700 back at the end of the month then there should be no interest to pay.

HappyMJ

Gwenig3 wrote: »

The balance is 7500. He buys his fuel on it and then pays it back each month. But with the interest adding on he is only paying 90 off the bill monthly. Going to sit down tonight and look at options.

He needs to stop using it and use a debit card for fuel. Using a credit card as a charge card and paying it off in full each month is fine but not by only paying the minimum payment each month.

Borrowing money to pay for fuel/travel costs which only lasts a week or two is a very bad idea. You need to be using income for this expense.