Someone please HELP! Advice needed for Credit Card debt!

amdurnin26

I am very good with my finances. I always know how much I have in the bank. I'm a good saver. And my credit cards always get paid off in full, and on time.

My friend however - different story! I thought I could help him, but I am totally stuck!

To give you a bit of background, his monthly income is roughly £1000.
However, he has £670 worth of outgoings each month.
This includes a Halifax loan he is paying off (£168.20 for 84 months from July 2003), and a HSBC loan he is paying off (£334.60 for 60 months from June 2005).

In addition though, he has a couple of credit cards whereby the interest payments are getting very high indeed.

There is a Capital One card with a current balance of £1859.47.
There is a Mint card with a current balance of £900.00 (estimate).
And there is a Vanquis card with a current balance of £425.80.

With the Capital One card for example, he'll pay £70 off when he gets paid, but they add £50 worth of interest! So only £20 is being knocked off the balance!

CAN YOU HELP???
What should he do???

Thank you.

Lavendyr

Try the debt-free wannabe forum for best help & advice

thesaint

He needs to find out which card benefits the most from having money thrown at it.

I don't have time to do the sums now, hopefully someone else can help.


Maybe try the debt free wannabe board.

Stephen_Leak

A Board Guide should be along soon to move this thread to DFW.

Basically, as above, you need to target the most expensive debt and, if possible, transfer it and the others onto a 0% balance transfer card to get rid of the interest while the capital is repaid.