I need help

edited 23 March 2016 at 3:10PM in Debt free diaries
1 reply 463 views
mclaughlin_kmclaughlin_k Forumite
2 Posts
edited 23 March 2016 at 3:10PM in Debt free diaries
I'm looking for some help, I've accumalated nearly £2,000 in credit card debt over my time at university. At the time I was looking for a quick fix and not thinking of the concequences or the ridiculously high APR that I signed up to that came with the cards. I have a 0% interest overdraft of £1000, that at the minute Im not as worried about as I have a few more years to make that repayment.


Now that I have graduated in the last year and have started to realise that this debt will only hold me back, in terms of saving for a morgate deposit or using it to purchase a car, I need to find a more manageable way of dealing with my debt, in a way that won't leave me with nothing.


I've considered paying off my credit cards with the little savings that I've managed to build up, however I don't want to leave myself with nothing.


I think the best option for me is using a balance transfer onto another card that has lower interest rates, so that my minimum monthly repayments are more manageable, because at the minute they are increasing every month and its getting to the point where if they climb any higher I wont be able to meet them.


If anyone has some advice on the best balance trasnfer I could do or has exerpience of doing so and it helping I would really appreciate hearing from you.


Signed, a hopeful slightly stressed graduate.

Replies

  • aphill24aphill24 Forumite
    141 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Forumite
    Hi, you have posted this in the Diaries section & not the DFW thread. Copy & paste it to that thread and I'm sure you will get some good advice.
    Obviously applying for a 0% balance transfer would be better for you than paying your debt with the interest rate you currently have.

    Make sure if you do go down this road you cancel the card that you currently hold and set up a fixed amount to pay off the debt within the 0% period or you will be back in the same boat.

    Take it from me having a debt on 0% interest is not an excuse to keep spending. Credit cards were meant to be paid off in the interest free period of around 56 days before accruing interest and if you use them in this way they have some good advantages especially the section 75 act that covers you for faulty goods etc but if you keep using them as you have only paying the minimum amount you will always be a slave to your credit card and will NEVER be happy with this unless you like to feel good handing over your well earned pay to the banks just because you didn't save up and pay for things in cash.
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