I want to stop drowning

debtaghh

Morning,

We have been offered a 0% deal until March 2020 or 6.9% for the life of the balance both with a 2.4% fee. Shall I not do either and try and clear the debt or use one of them for the debts that are coming off their 0%? If so, which deal?

I have deals coming off 0% from December and going on to their standard rate of nearly 30%, I have been trying to reduce the amount but it's still thousands of pounds.

enthusiasticsaver

Work out the fee first to see what the impact would be now as surely that will increase your debt?

You still have four months until December so I am not sure pre-empting it that early is sensible although I know you have done that in the past.

Are you paying interest on any of the cards now?

How often do you get offered 0% deals now?


It might be helpful to see the list of balances, interest rates and dates when deals expire.

debtaghh

Nuba £3450 0% until Dec
Tesco approx £5000 £1160% until Dec, £1150 0% until March and the rest 0% until June
Tesco £5500 0% until May

I'm paying interest on others but they are life of the balance rates.

I haven't been getting many offers lately at all. The fee is 2.4% for the offer.

enthusiasticsaver

So you have £4610 across the Tesco and Nuba due to expire in December? Moving that would be £110.64. 30% on that though would be approx £115 per month so if you know you will not clear it then it is probably worth it.

Are you able to target just the first tranche in Tesco or are payments paid against each of the deals equally? Assuming the monthly minimums are 2.5% that would be approx. £210 per month monthly repayment so the Nuba would be approx £3190 approx and Tesco £785 on that £1160 assuming you can allocate the whole of the repayment to tranche 1. That would be £3975 potentially moving to 30% in January so moving that to 0% would cost you £95.40 in fees which saves a bit. Any extra money and monthly repayments you make after Christmas could go to the Tesco card maturing in March/June.

debtaghh

The payments I make come off the one that's ending the soonest. I did think of transferring some but not all andtry my hardest to clear the rest before Dec. My dh is saying we should transfer to the deal of 6.9% as he is fed up with all these deals ending but I'm not so sure as it seems silly paying interest when we have a 0% deal, what do you think?

debtaghh

Morning,

I now have exact figures and dates in front of me:

Nuba £3450 0% until 31st Dec
DH Tesco £1895-0% until 31st Dec, £1150-0% until 31st March, £1250-0% until 21 November
My Tesco - £5390- £2520-0% until 30th April , £2989 until 30th June
My b/c £4397 0% until Jan 2019

My b/c will become 10.2% and the others a lot higher, Nuba 30%!

The deal I have offered to me is 0% for two years with 2.4% fee or 6.9% for life of balance plus 2.9% fee. I'm thinking of using the 0%. This is where I get confused. Should I clear my Tesco and then close it and give myself an aim to clear the others by December rather than moving it and not feeling the pressure. Or clear it now? I can't realistic clear £17,536 by next kind so would have to move something over anyway. I was worried I wouldn't get offered a deal so am pleased that I have. It's just deciding what's best. I'm not too fussed about the one going to 10.2% ( obviously I'd prefer it to be 0% but at least it's not 30% plus the minimum is 2.25% so I pay over a £100 a month as the minimum.

Sorry for such a long post but want to use this deal the best way possible.

enthusiasticsaver

I think using the 0% is better although I can see why your DH is fed up of juggling deals. This is unfortunately a consequence of high debt but no sense in paying interest when you don't have to. I think you should definitely move the part of the Nuba you won't clear or clear it all then focus on Tesco. I would not worry so much about your BC as it is 10% so not huge rate. If you have room to move part of your DHs Tesco then do that too. I would not worry about your Tesco. What will be minimum payment in new card and will this be affordable once you take NUBA out of the equation.

How much are you paying monthly to these cards?

debtaghh

The minimum will be more but now that we are not paying my dad back it should be ok. Plus it will in time get reduced the more I pay.

enthusiasticsaver

That is true and yes I think you are sensible to use the money your dad is foregoing to target credit cards instead. Hopefully by the time he wants you to start paying him back the cards will be lower.

debtaghh

I think I can prob clear 2k off the Nuba minimum by Xmas so shall I transfer £1450 and the rest my Tesco or dh?