Debt clearing advice

enthusiasticsaver

I would transfer the loan and as much of Amex as you can to 0% barclaycard on money transfer. What is the fee? You only have about 9 months on 0% so you will need to move it in August 17. Luckily you have caught this problem before it is unmanageable so you don't look heavily indebted and should have no problem getting another 0% card unless you have defaults or late payments on your record.

I would also ditch the Amex once paid off as your income is not enough to sustain a loan and credit card. Just keep to the barclaycard and use your current account for fuel and food payments. I would start off by paying £250 a month to the barclaycard until you have built up some emergency cash too.

MrsTinks

enthusiasticsaver wrote: »

I would transfer the loan and as much of Amex as you can to 0% barclaycard on money transfer. What is the fee? You only have about 9 months on 0% so you will need to move it in August 17. Luckily you have caught this problem before it is unmanageable so you don't look heavily indebted and should have no problem getting another 0% card unless you have defaults or late payments on your record.

I would also ditch the Amex once paid off as your income is not enough to sustain a loan and credit card. Just keep to the barclaycard and use your current account for fuel and food payments. I would start off by paying £250 a month to the barclaycard until you have built up some emergency cash too.

I would transfer just the card to be honest... Transferring the loan (or a chunk of it) may not reduce the monthly payment on the loan, but the term, if initially the main worry is actually affordability then increasing the minimum payment on the card AND still having the loan payment might be a bit of an ask?

nkkingston

Depending on when you're seeing people, don't forget about shopping post-Christmas. I had a friend who's abusive partner left her with a ton of debt and two small children, and she decided that they'd just shift their winter celebration to New Years Day instead of Christmas (since they weren't Christian anyway). Kids got all the same presents as their friends for a fraction of the price, the turkey was cheap as, and there was less time to break everything before they went back to school!

EssexHebridean

I agree with transferring the AMEX debt but personally I'd leave the loan where it is for the time being. I know it sounds illogical, but you won't manage to get everything cleared before that 0% deal expires, so for now, if it were me I would concentrate on getting the AMEX transfer done and cleared, and continue paying the loan as normal, due to the risk of perhaps not getting a further 0% deal once the current one is ended. Also, the Balance Transfer deal from Barclays may not allow you to transfer the loan over to it in any event. once the AMEX card is transferred over close the account straight away so you're not tempted to spend on it again.

As has been said elsewhere, once you have the reduction in your rent you should be able to hammer away at this pretty fast. Personally I'd work on getting an emergency fund built up, and clearing the 0% card when you have it, as priority. The emergency fund account will also act as a home for the money you're going to start putting aside for car maintenance - and putting that aside will, in turn, help avoid putting stuff like service & MOT on a credit card - make sense?

Learn to think ahead, and to budget for expenses, so the amount you put aside for your car initially needs to be enough to cover just the servicing etc., Once your CC is cleared, increase that amount to encompass extra towards tax and insurance, then once those come up for renewal, rather than paying monthly which costs you extra, you'll be in a position to pay them upfront, in a lump sum.

Oh - one more thing. Contents insurance - I doubt your rent covers that, does it? If not, you need some.

greenlightluke

Wow,

Thanks for everyone's responses.

I was never all that good with money until I met my girlfriend - it's because of her I'm taking everything seriously. I have opened up a separate account for savings (at the moment I just put pennies in) and once I've cleared my debts I can save more.

I think I'll transfer the AMEX card and close it, pay that off over the 9 months and then snowball that to over pay on the loan. I should be getting £550 back too in January from my old place as deposit so will contribute that towards paying off the Barclaycard.

You guys are all amazing. Thank you and I appreciate the lack of "you're an idiot"

enthusiasticsaver

MrsTinks wrote: »

I would transfer just the card to be honest... Transferring the loan (or a chunk of it) may not reduce the monthly payment on the loan, but the term, if initially the main worry is actually affordability then increasing the minimum payment on the card AND still having the loan payment might be a bit of an ask?

I suggested the loan as I think Luke said due to the fact the loan is over just 12 months the payment is quite high and making things tight. If the 0% deal is only until August 2017 though he will need to move it again as it won't be cleared by then.

enthusiasticsaver

greenlightluke wrote: »

Wow,

Thanks for everyone's responses.

I was never all that good with money until I met my girlfriend - it's because of her I'm taking everything seriously. I have opened up a separate account for savings (at the moment I just put pennies in) and once I've cleared my debts I can save more.

I think I'll transfer the AMEX card and close it, pay that off over the 9 months and then snowball that to over pay on the loan. I should be getting £550 back too in January from my old place as deposit so will contribute that towards paying off the Barclaycard.

You guys are all amazing. Thank you and I appreciate the lack of "you're an idiot"

That sounds like a great idea Luke. I reckon you will get this all cleared by next xmas.

MrsTinks

enthusiasticsaver wrote: »

I suggested the loan as I think Luke said due to the fact the loan is over just 12 months the payment is quite high and making things tight. If the 0% deal is only until August 2017 though he will need to move it again as it won't be cleared by then..

Agreed but he wouldn't be able to transfer the full loan making for a couple of months of higher risk of default... As he should be able to make increased payments on the card after the new year from moving and changes in circumstances he should be able to snowball

-taff

How long have you got left on the loan? You could transfer your amex, pay the minimum, and then if there are only a few months left on the loan, transfer to the limit of the card when there's that much left of the loan. You're probably going to have to apply for another 0% deal too come August.
And don't take another consolidation loan, never worked for me, never worked for the majority of people....Good luck