Should I move Credit Cards?

Ciwan

Hello Friends

I am with TSB Bank and on my Credit Card I currently have a balance of £2,123.88.

I am on the Silver Account. I tried using the Min Repayment Calc to make sense of why I seem to be unable to get rid of this debt but couldn't get my head around.

I am paying £9.95 a month for the privilege of owning a Silver account at TSB.

Can someone please advise on what my best next move is in order to clear this?

I would greatly appreciate it. The stress is starting to take its toll.

Candyapple

Call TSB and ask them to move you off the 'Silver' packaged account and onto the free/non-fee paying current account. If they refuse, move banks to one where you don't have to pay a monthly fee.

As for your credit card, take out a new card and do a balance transfer onto it and pay it off within the allotted timeframe.

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?&&&_ga=1.14773622.1553761807.1437387632#barclaycard28

20aday

Hello,

In addition to Candyapple's reply above how much are you currently repaying towards the outstanding debt and the APR of the card is?

Definitely ask TSB to ditch the packaged account; as daft as it sounds the £9.95 it's costing you each month is another £9.95 to throw at your balance.

It's easy for me to say "don't stress" but there is a light at the end of the tunnel.

Good luck x

Ciwan

Thanks guys, I'll try that! Here are the details for the account. It says the EAR is 19.94% (not sure if that is the same as an APR)

Which is lesser evil? APR or EAR?

grumbler

19.94% EAR is the interest rate you pay on your overdraft. Do you really use it? For the overdraft there are flat fees as well that EAR doesn't take into account.

Do you use/need any 'privileges' that you are paying for?

Ciwan

Yep I do use the O/D a lot. And I believe it is £6 whenever I'm in O/D.

About the privileges, I've not used them yet, but I thought it was good to have breakdown cover, phone insurance ... etc

grumbler

To what extend? £50 'free' overdraft isn't really a 'privilege' worth paying £10 p.m. for, especially if you go over £50 and pay £6 fee (plus interest).

And what is CC's APR? You've been asked this question, but haven't answered.

Ciwan

Sorry I confused the Credit Card APR for the Current Silver Account.

According to this, it is 17.9% APR (variable) and 17.95% p.a. (variable)

eskbanker

Since you say you have a 'massive overdraft' on your other thread it'll probably be worth looking at your overall finances rather than piecemeal, as it's often worth getting rid of an overdraft (that can be withdrawn without notice) instead of a credit card debt, but a lot depends on rates, costs, etc.

Even if you don't necessarily want to share it, you could assemble a statement of affairs using http://www.stoozing.com/calculator/soa.php so you can see where your money is going, if you are looking for ideas then you can post it on the debt-free wannabe board.

Ciwan

Thanks Eskbanker, that is what I want to do. I am looking at my overall finances. I have YNAB and set-up a budget as well.

Here is my current account and my credit card (bottom)

Candyapple

Ideally you need to get a card that allows money transfers so you can clear your overdraft AND your credit card balance. MBNA are known to give decent limits, or you could try your luck with the new Virgin card.

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs?utm_source=MSE_Newsletter&utm_medium=bignote-one&utm_term=15-Jul-15-lt&utm_campaign=loans&utm_content=13