Credit Card- please help

wiggywoo9

Hi

So basically, my only debt is a TSB credit card with £2,300 owed on it.
Interest is £33 pm, min payment is £55 pm. 19.94% interest I think.
I haven't had any financial things before so my credit score is low. How can I clear this? Am I getting charged £88 pm on fees alone that won't clear the debt? This is quite a chunk

PeacefulWaters

What are the £88 in fees for?

What's the credit limit?

How much are you actually paying each month?

How much are you spending on it each month?

bris

With a minimum payment of £55pm and interest of £33 means you are only paying £22pm to clear the debt, this will take about 9 years to clear, take that in, 9 years.


Have a look about and see if you can get a balance transfer card and move it over, if not you really need to up the minimum payment to a level that will clear the balance much quicker.
Another option is a personal loan to cover it with a much lower interest rate over say 3 years, this should be manageable and you know when it done, its done.

YorkshireBoy

wiggywoo9 wrote: »

Hi

So basically, my only debt is a TSB credit card with £2,300 owed on it.
Interest is £33 pm, min payment is £55 pm. 19.94% interest I think.
I haven't had any financial things before so my credit score is low. How can I clear this? Am I getting charged £88 pm on fees alone that won't clear the debt? This is quite a chunk

If you can't get a 0% BT card, maybe use some of the £2.5-3K savings you said you had 3 weeks ago...

https://forums.moneysavingexpert.com/discussion/5646437

...and then build up the savings again.

Paying 20% interest on debt, whilst getting 1% (5% if you've been smart with current accounts and/or regular savers) on savings is daft!

SHill

Hey,

Well done to get help here. You have done the right thing. I too was in the same predicament as yourself.
Listen to what others have advised do you bank with TSB? If not get a card with them...

Not to over think about your credit score too much just make sure you are at listed making the payments each month...
Work out how much more you can pay each month once you have a Balance transfer card.. if you can't transfer all of it.
Use the snowball method.. if you get spare cash birthday gift, Christmas gift or overtime payments use it to pay off the debt quicker...
don't spend what you don't have, and don't give your self an excuse that you have a little breathing space..

When I did my first balance transfer I had 18 months only nowadays you can get upto 30+ months...
Don't do too many credit card searches in a short space as you may get declined
give yourself at 6-12 months each time...but keep paying your debt off...

All the very best ..Debt free wannabe ..

YorkshireBoy

SHill wrote: »

do you bank with TSB? If not get a card with them...

From the OP...

my only debt is a TSB credit card

..........

SHill

Yes I note what wiggywoo9 has written, he has credit card debt with TSB he doesn't say he banks with them.
I have a credit card debt with a main high street bank but I don't have a main bank account with them...

YorkshireBoy

SHill wrote: »

Yes I note what wiggywoo9 has written, he has credit card debt with TSB he doesn't say he banks with them.
I have a credit card debt with a main high street bank but I don't have a main bank account with them...

Your advice was to get a(nother) TSB credit card.

Now 3 questions...

Can one have 2 TSB credit cards?

Given the OP is paying interest on an existing debt with them, do you think (if they did allow it) they'd grant another?

Finally, and this is the clincher, do you think they'd allow OP to BT a debt from one of their cards to another?...thereby depriving themselves of £33 a month?

A second card isn't going to happen. And if it did it would be useless.

YorkshireBoy

YorkshireBoy wrote: »

Can one have 2 TSB credit cards?

Answered on their website. Both their BT cards carry the following wording...

This offer is only available if you do not already have a credit card from TSB.

Ben8282

wiggywoo9 wrote: »

Hi

So basically, my only debt is a TSB credit card with £2,300 owed on it.
Interest is £33 pm, min payment is £55 pm. 19.94% interest I think.
I haven't had any financial things before so my credit score is low. How can I clear this? Am I getting charged £88 pm on fees alone that won't clear the debt? This is quite a chunk

How do you make that out? As far as I can see you are being charged £33 per-month and not £88.
Are you aware that you can pay more than the minimum payment each month? If you want the balance to be repaid quicker then may more each month.