£20k in debt - help me get it sorted!

Rabka

Hi guys,

£20k is A LOT of debt but, I have been heartened by seeing some of the figures on this forum and how people have managed to get their debts right down!

A default has come off my credit file and I have managed to negotiate a little with my credit card providers to get lower rates.

Here's a breakdown of my situation; would love some assistance on the best strategy to bring them down!

Capital One (opened today!):
£2095 at 0% until June 2015

Barclaycard Platinum:
£1710 at 0% until June 2015 (transferred from M&S today!)
£7059 at 9.9% until August 2016

Barclaycard Initial:
£1170 at 9.9% until August 2016

Barclayloan:
£8287 at £295 per month (another 28 months)

Which credit card do I target paying off first?

PinkPoppies

Have you tried sticking all your cards and APRs into the snowball calculator? It's a brilliant tool and will factor in your 0% periods too. http://www.whatsthecost.com/snowball.aspx

Do you know what the 0% APRs will switch to after June?

LionessInWinter

How much do you have left after all minimum payments are made to tackle a card?
Usually you start tackling cards that are charging the highest interest.
How much is the apr for Capital One once the 0% ends?

sistafromanothermista

:wave: I have been where you are!
The snowball calc was my lifeline and really helped me claw my way out.

Also the SOA. I felt ashamed at how much i spent on cr**!
Since becoming debt free i have only spent on CC when it has suited me to do so. Ie. when i have the money to clear in full but keep my foot in the door with regards to building/maintaining my credit history. You WILL get there but you need to be ruthless and determined!

enthusiasticsaver

Minimum payment on all of them and then I would probably tackle the Barclaycard platinum first as it is one of the highest rates and is the largest debt. Alternatively the Barclaycard initial if you want the incentive of paying one of them off quickly as that is a much smaller debt. You will need some strong will to pay them down but it will be worth it.

submarine76

I would go with the smallest one first, as enthusiasticsaver says it can be more motivating to pay something smaller off first. My CC is over 7k and it does sometimes feel like trying to shift a mountain, but reading some of the diaries on here can be very inspirational, many have dealt with far worse than our level of debt and come out on top. I think the most important thing is to keep your goal in sight and keep chipping away at it and try not to go back to old bad habits. I have had a good couple of months and am realising the only way out of my mess is by confronting it and trying to sort out my poor personal 'badmin'.

redpete

What are the minimum payment and how much a month can you afford to pay off these debts?

bubbles_1

Call the cc companies they can reduce interest I used to work for a cc company they won't offer the lowest available so be prepared to negotiate.

thewhiteavenger

Rabka wrote: »

Hi guys,

£20k is A LOT of debt but, I have been heartened by seeing some of the figures on this forum and how people have managed to get their debts right down!

A default has come off my credit file and I have managed to negotiate a little with my credit card providers to get lower rates.

Here's a breakdown of my situation; would love some assistance on the best strategy to bring them down!

Capital One (opened today!):
£2095 at 0% until June 2015

Barclaycard Platinum:
£1710 at 0% until June 2015 (transferred from M&S today!)
£7059 at 9.9% until August 2016

Barclaycard Initial:
£1170 at 9.9% until August 2016

Barclayloan:
£8287 at £295 per month (another 28 months)

Which credit card do I target paying off first?

Barclaycard Initial

Rabka

Thank y'all for your responses and advice (albeit, slightly conflicting!). In response to some of your queries:

@pinkpoppies - Capital One will go to 34.9% (@LionessInWinter) and Barclaycard Platinum to 24.9%

I'm looking to pay anything between £400-£600 a month towards these debts!

Rabka

Snowball calculator suggesting that I should pay off Capital One first...