Paying off debt

killmydebt1

Hi (waves)
Due to redundancy twice, I have incurred quite a bit of debt and want to pay it off and I wonder if you can help with any ideas.

I have a current account with an overdraft of 4k and a card credit card with 7.5k debt. The fee on the current account is around £55 per month and the card credit debt and repayment around £200. However, this is not making a big dent on either.

My questions is around dealing with this debt and would moving credit credit, to one with a 0% balance transfer one way to go for starters, or speaking to the current provider?

Any help much would be great

gettingtheresometime

Firstly I would post your budget on here so that the good folks can suggest ways of cutting it back so that you've got extra money to throw at the debt.

Secondly I would contact your bank and ask if there's a way of you transferring to a non fee paying account whilst keeping your od limit so that you've at least £55 per month to throw at the debt; this of course assumes you don't use the 'benefits' of having such an account.

If you do get a 0% card then cancel the card that you will transfer from; don't make the mistake many of us,including me, has made by transferring and then responding on the card

Chemical_Grrl

Definitely transfer to 0% if you can, then set a monthly payment that you can afford which is more than the minimum, in relation to your overdraft you need to work out a plan to pay it off rather than just paying the fee to have it, could you get a low Apr loan to pay it off? As someone else has suggested it would be useful to post your budget so people have more to work with to advise you xx

andyfromotley

Hi KMD,
firstly try and post an soa, this will help us get a handle on your finances and the options open to you.
http://www.stoozing.com/calculator/soa.php

But yes of course if you can get a 0% card then it makes sense. But you must CLOSE the existing account to prevent you maxing it out again. (or if they are likely to offer you deals then a money transfer to clear your OD would be very helpful)

However while these will help they are not going to solve your debt problem any time soon. Even if you shift it all to 0% and keep it there then its going to take around 4 years to repay it at your current level of payments. You should be considering where to save money/earn more in an attemt to really crack this debt in short order.

Like i say an SOA is the best place to start.

killmydebt1

Hi
Thank you for all your help. The reason I haven't listed a budget is my outgoings are so very low, I have a spreadsheet with it all recorded. I haven't had my haircut for yonks, have no Sky, entertainment, I haven't bought new clothes for ages, and never go out, etc... I've even changed jobs and earn more, but I really want to dent the debt now.

The best thing I can do is contact the bank and see if there is anyway to transferring to a non-fee or other alternatives, if not then 0%.

Has anybody had experience with the banks doing this?

Thanks again

glentoran99

killmydebt1 wrote: »

Hi
Thank you for all your help. The reason I haven't listed a budget is my outgoings are so very low, I have a spreadsheet with it all recorded. I haven't had my haircut for yonks, have no Sky, entertainment, I haven't bought new clothes for ages, and never go out, etc... I've even changed jobs and earn more, but I really want to dent the debt now.

The best thing I can do is contact the bank and see if there is anyway to transferring to a non-fee or other alternatives, if not then 0%.

Has anybody had experience with the banks doing this?

Thanks again

That is unsustainable, You need to allow some money for ebtertainment and new clothes etc

Primrose82

What type of credit position would you say you're in ? Credit scores mean nothing but have you tried the credit card suitability checker on here which gives you an idea on whether you'd be accepted for a 0% card ? Halifax for example are doing a 0% balance transfer for 40 months - but that won't help the overdraft , you'd need a card that did 0% for money transfers as well