0% credit card interest anxiety !

JBsoul

Hi all
I've got four credit card balances at 0% interest, totalling about 14k. I pay back about £275 a month across these cards and I've worked out that at this rate, I'll have repaid the debt within 5 years and not pay any interest, assuming I can transfer one or two of the balances onto other 0% cards during this 5 year term.
I was pleased to get these deals and I should feel ok and relaxed about it, right? But I don't. I'm starting to struggle financially and now deeply regretting building up such a debt, even if I have done the sensible thing and got it onto 0% deals. I've just spent too much.
All the balances and repayments, even though they're on direct debit, are starting to stress me out and I'm now getting tempted to consolidate into one bank loan, for simplicity, even if this means paying interest.
But I've recently opened up a new Hsbc bank account and - bizarrely - this has caused my credit score to dip 70 points. It's gone from 'excellent' to 'fair', so I don't stand any chance of getting a low interest loan for £14k. I dare not apply for anything else right now in case it damages my credit score any more.
So I'm feeling rather trapped and wondering what to do. I've scrutinised my budget over and over but I can't see an more obvious ways to cut back, without more drastic action such as suspending pension payments or something like that. My motoring costs are high because I have to commute about two hours every day, which doesn't help. I haven't done car sharing yet because my day start and finish times can vary and I do not want to be tied down to giving someone a lift back at a particular time.
Does anyone have any thoughts or ideas to help? Does anyone out there understand what I'm on about or have I officially lost the plot ?!! :rotfl:
Thank you in advance for whatever support you can give.

dcouponzzzz

without posting an SOA we can't suggest where changes can be made, but crucially you need to get in gear and apply for jobs near to home, or sell up and move closer to work. There's no excuse for not doing this, and if you find one it's just that, an excuse

[Deleted User]

JBsoul wrote: »

Hi all

But I've recently opened up a new Hsbc bank account and - bizarrely - this has caused my credit score to dip 70 points. It's gone from 'excellent' to 'fair', so I don't stand any chance of getting a low interest loan for £14k. I dare not apply for anything else right now in case it damages my credit score any more.

Ignore your score. Experian aren't going to lend you any money and a lender won't be concerned about a current account.

EssexHebridean

Get your SOA sorted and up - that's the best way of people being able to offer help and suggestions. Getting all the figures into that will also clarify for you how you're really doing, and it'll help you to establish whether you still have an issue with spending out more than you have coming in.

Looked at logically, unless you want the debt to hang over you for longer than the current estimate of 5 years, a consolidation loan is going to cost you more than you're currently spending in any event. You're absolutely right in saying that you've done the best thing with the 0% rates - yes it will be a hard slog but there's not a lot of point in throwing good money after bad, would be my view.

JBsoul

Hi - thank you. Can you show me example of SOA please?

EssexHebridean

The link to the SOA Calculator is HERE

MallyGirl

JBsoul wrote: »

Hi all
I've got four credit card balances at 0% interest, totalling about 14k. I pay back about £275 a month across these cards
...
All the balances and repayments, even though they're on direct debit, are starting to stress me out and I'm now getting tempted to consolidate into one bank loan, for simplicity, even if this means paying interest.

Seriously? You have 4 payments going out automatically once a month and that is stressing you out?
You have them all on 0% for now - don't go trying to borrow more and pay interest.
Just look at your SOA to see if you can free up a bit more money to chuck at the cards as none of those 0% deals will last 5 years and you may not always be able to transfer in the future.
If you can't get a 0% transfer as each one moves out of 0% deal then that is the time to look at lower cost borrowing, not now.

[Deleted User]

Maybe look to pay higher payments to the ones which are going to run out of the 0% soonest then once those are cleared the payments to them can be split between the remaining cards.

Dxxx

enthusiasticsaver

Don't go for a consolidation loan. Think of the £275 as your consolidation payment. A consolidation loan will hang over you for a lot longer and it will not be at 0%.

Are you living within your means each month at the moment- ie is the debt now decreasing rather than increasing?