Stuck paying minimum amounts

SL123

Can anyone give me some advice please?
Paying minimum amounts on all my debt and getting no where. My credit score isn't great so I can't consolidate with a loan. I have a barclaycard platinum with an £11,000 limit (currently using £3,400) so I'm considering paying my very and next account off with that and then paying more off my credit card. Does that sound like a good idea?

thriftylass

Do you have any more info like very and next account debt amount and at what APR? Barclaycard APR? Maybe even a SOA to see if there is any money to be saved in your budget?

What hours do you work, could you get a second job, anything?

SL123

Very balance: £919 47.9% Apr
Next balance: £990 22.9% APr
Work part time income: £878 including child benefit. Can't get a 2nd job due to childcare.
Barclaycard apr is 26.18%

EssexHebridean

First step - SOA (Statement of Affairs) - you'll find the link in the "Sticky" post at the top of the board. Fill it in as accurately as possible, format for MSE and then post in here and we'll be able to take a look and see what might be able to be saved and where.

Your priority right now though is to stop using credit. Cut up your credit card, and stop using your catalogue accounts. Otherwise you're just making the situation worse.

Money_Rollercoaster

If you don't have any balance transfer offers on the Barclaycard, there wouldn't be any benefit in moving your next balance to Barclays as the APR is higher. There is potentially benefit in moving the Very balance to Barclays though and you really want to shift that debt to a lower APR / pay it off ASAP.


If Barclaycard have a BT offer and the APR is cheaper than the Very and Next cards, then by all means move the debt and pay off as much as you can every month. Oh, and close the Next and Very accounts.

SL123

I have this BT offer: 6.9% until paid in full
2.9% fee applies

So that would be worth doing right?

Windofchange

Basically anything you can do to minimise the interest is worth doing. If you can't get a 0% card then you will have to take what you can, but yes I'd rather pay 6.9% as opposed to 47.9%. As others have mentioned, the most important thing to do is to stop buying things on credit. It took me many years to wise up to this very simple fact and I am finally getting to the light at the end of the tunnel.

SL123

I do have a 0% offer but it's only until November and I don't think I can pay the full amount off by then.
If I was to transfer both very and next onto my barclaycard which already has £3708 on it the total will be £5706 so what will my minimum payment be? (Obviously I will pay more than the minimum just want an idea of what i will be paying)

Windofchange

Using the tool at Barclaycard and putting in your figures, you are going to be paying £181.35 for your first month of which £124.35 is interest.

Now if you can transfer the money on 0% then you will pay a minimum payment of £128.25 a month if the whole balance was at 0%, but the existing money won't be.

https://www.barclaycard.co.uk/personal/credit-cards/interest-calculator

You'd be paying £117.72 in the first month on the £3708 (£37.00 repayment of loan, £80.72 interest), and then £45 a month on the £2000 odd that is interest free, so a total of £162.72 a month which would then come down as you progress through the year.

Regardless of whether you can pay off the cash or not by November my advice would be to get the money onto the 0% deal. There may be a 2 - 3% handling charge which will be a couple of hundred pounds, but this should be easily negated by the interest payments you are saving for 9 months on that £2k.

Your mission then in the next 9 months whilst you have 0% is to throw the kitchen sink at the debt. Cut out everything that isn't essential. Don't see this as free money that you can spend or you will be here in 9 months time in a worse position.

enthusiasticsaver

If you have a 0% deal I would take that and pay as much off as possible until November then move it again. Definitely very and if you are able the Barclaycard and the next balance too. Cut up the cards and stop spending on them.

SL123

I've just tried transferring my very balance to my barclaycard and it's asking for the store card number, it's online so I don't have one? Just an account number, maybe I can't transfer that balance