balance transfer crisis

I sensibly decided to open a Barclaycard credit card for the 0% interest but was given a credit limit of half the balance from my previous card. As I couldn't transfer my balance and it came at a bad time, I have put money on this card too as well as leaving my original balance as it was. Now the same thing is happening when I opened a new Alliance and Leicester account for the 0% interest overdraft, its less than my other and so I can't close the old account! I'm getting into more debt as I try to get myself out of it. What can I do now? My solution is to open a basic account, move money into it and try to pay the other two off as I go.....................any ideas?

Comments

  • Magentasue
    Magentasue Posts: 4,229 Forumite
    So you have a credit card with ?% interest, a Barclaycard (still?) at 0% and an overdraft at 0%?

    If you are treating your 0% overdraft as a debt, I would use another account as a current account. Not sure if this is a good idea but Iwould like to be seeing the overdraft reducing steadily and have a current account in credit.

    If these are your only debts, you should be paying whatever you can afford,minimum payment to the 0% card and as much as you can to the card charging you interest. As soon as that's paid off, look at the interest rates and attack the one with the highest rate.

    However ... I'm wondering why you're getting into more debt if you're just moving it around? Are you still spending on credit?

    Basically you need to work out a budget so that everything gets paid from your income and the excess repays your debt. Is this what you have done? Or are you trying to repay your debt and then running out of money so you use more credit?

    Also, can you apply for another 0% card?
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    willowanne wrote:
    I sensibly decided to open a Barclaycard credit card for the 0% interest but was given a credit limit of half the balance from my previous card. As I couldn't transfer my balance and it came at a bad time, I have put money on this card too as well as leaving my original balance as it was. Now the same thing is happening when I opened a new Alliance and Leicester account for the 0% interest overdraft, its less than my other and so I can't close the old account! I'm getting into more debt as I try to get myself out of it. What can I do now? My solution is to open a basic account, move money into it and try to pay the other two off as I go.....................any ideas?

    Given the above, I think the best thing to do is not apply for any more 0% credit cards or accounts as apparently all you are doing is increasing your REAL debt and making the situation worse with each new card.

    Your goign to have to bite the bullet and work out a budget for paying off the debt, with the highest interest charging accoutn first...
  • roger56
    roger56 Posts: 478 Forumite
    Not too much to go on, but it's best if you list the debts and the interest rates and work out what you owe.

    Next do a budget and see what your income and outgoings are.
    Whatever is left use to pay off the highest interest debts first (but do make the minimum payments on the cards to avoid charges).
    If there's not a lot left over or you spend more than your income it's time to reel in your spending (well even if there's money left, you could still see if cuts can be made to save money). Use this to help you on your way:

    http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103204730,72152,
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