Help reducing my debt

Hi i am looking for best advice to help clear my debt.

After playing at card tarting (thanks all MSEs) i have transferred my debt onto 0% cc. However, i have more than needed from the cards and i am asking for help to maximise my clearing of debit currently £15666.06.

current 0% cards are: Egg maxed @ £5500.00 ENDS OCT O5 min 2%
FI maxed @ £4900.00 Ends feb 06 min 2%
M&S 5000 @ £4500.00 Ends Feb 06 min 3%

after clearing £4500.00 from Virgin to M&S and opening an A&L prem Plus account with cc, I called A&L up to ask if they could match my £5000 limit i had with virgin. MBNA kindly closed my Virgin account and gave me an £8500.00 limit. Furthermore, they transferred that amount into my A&L current account. once the money has cleared, i can pay off remaining debt leaving in my account around £4000.00

My aim was to transfer all my debit onto a Texaco 3.9% lob credit card, thus creating an effectively cheap loan. I had planned to save and have a holiday and continue to pay off my debt at this cheaper rate But texaco have only offered me a limit of £4500.00.

I am tempted to pay off the M&S card which removes an extra monthly payment of £135.00 which i could save, but i am worried that in Feb i may not get £8500.00 limit from another card. Also what do i do with Texaco? do i shift some money accross, i am not sure what their monthly payments would be? I want to clear my debt - but i want a wee bit of lifestyle with my partner. Any suggestions please

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Name Dropper First Post Photogenic First Anniversary
    stbdf wrote:
    ... currently £15666.06.... I had planned to save and have a holiday ... but i want a wee bit of lifestyle with my partner. Any suggestions please
    If I were you and if I had such debt I'd foget about holidays and lifestile... You cannot switch cards forever and you will end up with paying high interest rate and you will have nothing left to repay debt.
    If you really need advice how to reduce your debt you should give more information about income and outgoings.
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    Combo Breaker First Post
    grumbler wrote:
    If I were you and if I had such debt I'd foget about holidays and lifestile... You cannot swithch cards forever end you will end up with paying high interest rate and you will have nothing left to repay debt.

    Agree entirely with this.

    You seem to be focussed on switching & shuffling, which is OK, up to a point.

    But you need a plan to repay the debt. Look at your budget. Look at your debt repayments. Imagine what life would be like if you had that money to spend on yourself, rather than handing it over to the lenders.

    Pay off the debt

    Pay off the debt

    Follow the yellow brick road ;)
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    I agree entirely with grumbler and Debt_Free_Chick.

    You say you want a 'wee bit of lifestyle with your partner'. What exactly does that mean? If it means things that cost money, you can't. End of. You need to get rid of all those cards instead of switching from one to another. You also say you want to save. Again, you can't. The interest you would get from savings is going to be less than the interest you're paying on all the cards.

    You say you're tempted to pay off the M&S card which would remove another monthly amount which you could save. Yes - pay it off. No - you couldn't save it, what you do is to throw it at another of the cards, pay that one off, then the next one....get the idea? This is called 'snowballing'. Do not think of more loans, more cards - tackle them one by one and get rid. Put them in order of highest interest first, pay that one off, then the next one etc.

    Your 'lifestyle' will come when you've got actual money that you've earned, in your pocket, that doesn't have to go out immediately to some card provider, bank or loan provider.

    I probably don't understand this 'lifestyle' stuff because to you, I'd be just another wrinkly who knows nothing. You'd be wrong - been there, done that, seen it over many years. But I sleep peacefully at nights, I know no debt collectors will come knocking at the door, we have enough to live on - not rich but not poor - we can afford the kind of food we like, we can afford to go on holiday and do home improvements without a worry. Peace of mind is the best 'lifestyle' in the world!

    Aunty Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • ceegee
    ceegee Posts: 856 Forumite
    Very wise words indeed, from Aunty Margaret........I agree 100% with what she has written. She is a cool dude(ess). ;) :beer:
    :snow_grin"Let it snow, let it snow, let it snow........":snow_grin
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    Thank you, ceegee! I like being a cool dude(ess) within weeks of my 70th birthday!! Love it!

    Seriously though, what the OP has written sounds an awful lotta hard work and worry, and I couldn't be doing with it. Applying for this card and that, switching the balances, not paying anything off, just a perpetual juggling act and at the end of the day, although he may be earning a good income, most of it has to go out immediately in repayments, interest, you name it. So all those cards and loans with available credit actually mean nothing because it all has to be repaid sooner rather than later.

    Me, I couldn't be bothered. I'd rather have a peaceful life, to know that all the money that I have is *mine* and no lender is after it, and be able to go out into the garden and watch the birds and the butterflies. And that is something which no money can buy.

    Aunty Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • meanmachine_2
    meanmachine_2 Posts: 2,624 Forumite
    First Anniversary Combo Breaker
    oh Aunty, you dinosaur.

    Live now, pay later. In fact, live now and pay never! Just keep juggling and juggling until there are at least eight balls (cards, loans whatever) to juggle. What fun!

    To the OP, I'd say you had your "lifestyle" and to me it sounds like it was a lifestyle beyond your means.

    Now you have to adopt a new lifestyle well within your means. After that you can assume a new lifestyle somewhere in the middle.

    And rather than go out to the pub or theatre, why not take a trip to the seaside, or on a long walk? It's free and will make you healthier and happier.
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    You could try halifax, since they do offer LOBs at the end of the 0% period.

    Why not call the card companies up to say if there are any LOB's they could offer you , got nothign to lose.
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