Which choice

getmore4less

abby1234519 wrote: »

So much to get my head around!

I think the 0% will be finished by the time you have money for them

The detail will be the key, try on the Simply Be, if that works and you are comfortable.(handy it is the small one so quickest) then think about the next one.

debtbgone

abby1234519 wrote: »

So, I should be able to knock £80 off Simply Be this weekend as am selling some wedding stuff.

Worked out if I follow the idea of putting money on one of the cards for groceries which covers minimum payment, and some more to cover interest, then the same with another card for petrol...I will then have £60 free that I can use each month as a "snowball" to start to clear the other ones.

I think this is the path to go down rather than defaulting and going on a DMP?

I think this is the best way to go about it. You should be able to clear most of the Simply Be between the £80 and the cash saved by using the credit cards. Definitely have a scout around the house for things to sell and get some cash together as it might be just the boost you need to get started and the pace will gradually increase. Good luck x

enthusiasticsaver

I reckon on the interest rates of some of those cards you are probably not reducing the capital at all if you are only making minimum repayments. My choice would be to find the lowest possible personal loan rate and pay off all of the cards and other debts charging a higher interest rate. Close down the cards bar one and post an soa or get some debt advice. Do not be tempted to carry on borrowing once consolidated and make as many overpayments as you can if they are allowed. Pay off over the shortest possible term.

abby1234519

enthusiasticsaver wrote: »

I reckon on the interest rates of some of those cards you are probably not reducing the capital at all if you are only making minimum repayments. My choice would be to find the lowest possible personal loan rate and pay off all of the cards and other debts charging a higher interest rate. Close down the cards bar one and post an soa or get some debt advice. Do not be tempted to carry on borrowing once consolidated and make as many overpayments as you can if they are allowed. Pay off over the shortest possible term.

They are reducing, but minimally. Ie £60 paid off but £50 interest

We can't get a loan to cover 16k, we don't qualify for one

abby1234519

getmore4less wrote: »

I think the 0% will be finished by the time you have money for them

The detail will be the key, try on the Simply Be, if that works and you are comfortable.(handy it is the small one so quickest) then think about the next one.

Does it matter though? (I am asking rather than contradicting).

If its 0% for 6 months and I am unable to pay it off by the time it ends does it then add interest on from the start?

enthusiasticsaver

getmore4less wrote: »

You will see munch better progress by clearing the 3 of these 4 first.

Simply Be 39.99% £15ish payment
£170.99

Capital One Liam 34.90% £10 until 0% over
£973.06 limit of £1000 currently is 0% till April I think, balance transfered from two other cards.

Cash Plus 30.00% £40ish
£500.00 just needs clearing

VERY 29.99% none at the moment
£621.61 0% till June


I suspect that removing cards from the file as settled will be a faster route to new credit on lower rates than dropping the ballances by a bit on all of them.

I think you can nail that £171 fairly quickly proably this month if you have enough room to pay for the fuel and the groceries on cards(just enough to clear the 171.)

I would agree with this. Clear the most expensive debts and ignore the balances and then close them down as you clear them. This will do more to repair your credit rating than anything.

abby1234519

Quick update - need some help.

So I've been accepted for a Barclaycard Platinum (absolutely shocked) with a credit limit of £800 (I know it isn't much but still...

What do I do, I can either balance transfer for 34 months at 0% or I can put purchases (ie food and petrol) for 9 months at 0%

So if I balance transfer - what should I transfer across?
If I did purchases then I would be able to use that money to pay off on interest bearing cards but that's probably not the best plan?

Simply Be should be paid off in full this month but how it stands at the moment with the credit cards is....


Capital One 34.90% 0% for 5 more months Balance £973.06

CAPITAL ONE 30.34% Balance £1,478.97

Cash Plus 30.00% £482.28 (I was going to focus my repayments on this one next so don't put it on BCard?)

Lloyds Card 21.94% £4,840.00

Tesco 17.90% £3,976.89

Halifax 0.00% for 5 months then about 20% £677.38

abby1234519

Bumping myself!

jaydeeuk1

Balance xfer capital one as its most expensive (the 30.34%) Tesco might increase your limit in months to come, not sure how soon BT's must be completed but that might help. Don't spend anything more on cards!


Also when you've paid a card off, before cancelling it it might be worth asking if they'll do a balance transfer offer at 0%. Perhaps even pay off the cash plus one first via BT and see if they'll offer some deal, if they're like barclays they'll bite your hand off to keep you as a customer.

sanfrancisco

Yes do the 30.34 capital one card. Then focus on paying the remaining balance off of that one and the cash plus one. I know it goes against the grain and all that but sometimes at the beginning of our dfw journey it can feel good to reduce the number of debts, as opposed to paying the highest apr. Once you have paid off these two shut them down and you will have four debts. Woo! When will that be?

You are doing brilliantly. You have definitely had your lbm. Well done! I got out of £70k of debt 10 years ago. I now have house, 3 babies and am financially sound. You never get over your dfw ways tho. I hate spending !!

Keep going xxx