Debt Plan

Jemjemjem1990

So here goes my first post....

I have debts of around £5800 and I've decided to clear them sooner rather than later. I have a rough plan but think I need a little advice to see if this is the right way to go as I want to sort it myself before getting in too deep or involved with DMP etc.

Any feedback/thoughts would be gratefully received!

Credit Card £5100

I have an 0% CC for Balance Transfers but the limit for a transfer is only £2500. I'm thinking of transferring £2,500 from my current card to my new one giving me time to blitz down the remaining balance and focus on the 0% debt once I've cleared the remaining amount.

Overdraft £700

I am with the Halifax and get charged £1 a day for this, I have a basic bank account too which i'm thinking of transferring my salary into plus all my DD's (Phone bill and dental plan) then I can treat my OD as another debt.

Will I get charged if I only pay the interest and cut a little bit off my OD every month instead of coming out of it completely when my salary goes in only to go back into it the following week?

I hope this makes sense!

sourcrates

Halifax can be difficult when it comes to stopping interest etc, I would write and explain your situation to them, ask for interest to be stopped if possible, don't ask, don't get.

Good idea to go with the basic account, and with the 0% card.

Good luck with it.

Sazzie23

How long is the 0% for!? remember there is a charge for the transfer.
Otherwise seems like a plan.

Have you tried the snowball calculator to see if this is the best way to get to DFD ?

Nebulous2

Beware if you move your banking from Halifax, as they could recall your overdraft.

If you have just got a 0% card, how easy was it? Did you only apply for one? Have you used the eligibility checker?

A couple of other options would involve applying for another new card. Either a money transfer one, where you could transfer money to your bank account to pay off your overdraft, or a 0% purchases one, where you could use it for regular expenditure and use your salary to pay off the overdraft.

Either way I'd want to tackle the overdraft. The money it is costing could be used more productively to pay down your debt.