Credit Card Debt Query - Please help x

Overmyhead_2

I finally took stock in November last year and my figures looked like this ...
Overdraft - £2,990 (charging £4 per day)
Card 1 - £3,599.10 (25.95%)
Card 2 - £2,447.75 - broken down in to -
£2,095.80 (17.18%)
£331.95 (24.60%)
Card 3 - £4019.99 - broken down in to -
£3,561.23 (17.18%)
£550.77 (24.60%)
Card 4 - £6,775 (0%)

TOTAL - £19,831.84

I have managed to get those numbers down now but I’m still not eligible for any 0% balance transfer cards. I have some room to move between cards and I’m looking for advice on which balances I should move first to save the most - I can’t quite get my head around working it out. Any advice would be appreciated. New balances and offers are as follows ...

Overdraft - £0
Card 1 - £2,450 (26.20% pa) - £4,200 limit - Bank
Card 2 - £2,100 (17.43% pa) - £2,500 limit - Barclaycard
Card 3 - £3,700 (17.43 % pa) - £4,050 limit - Barclaycard
Card 4 - £5,875 (0% pa) - £7,000 limit - HSBC

= £14,125

Card 1 is offering 6 months @ 4.9% pa for a balance transfer and Card 4 is offering 18 months at 0%

Which balances should I be transferring between cards to make the most of the offers I can at the moment please? Would hope if I cleared one BC card they might also offer me a 0% transfer from elsewhere.

I would also mention that I have been paying as much as I can to each card recently but I’m due to go on maternity leave so money is going to be tight. The fewer payments over the next 9 months the better.

Thanks in advance x

Willing2Learn

What credit limit is card 4 offering you @ 0% for 18 months?

I personally would not accept the card 1 offer for six months as then you would be paying 26.2% once the six months expires. This would coincide with baby time and money will be at it's tightest.


I would focus on paying the highest interest card debt down asap, putting the max amount of money toward clearing it. The other cards I would pay the minimum monthly amount until card 1 is down to £0 then I would focus on paying the next highest interest. A snowball method of paying down the debt.

I hope this helps.

And good luck with the baby too!!!!

Overmyhead_2

Thank you for your response - card 4 limit is £7k so there!!!8217;s £1,100 free I could move from card 1 to there? It will put the monthly payment up but I don!!!8217;t think by too much. I think the now it!!!8217;s around £150 but I pay £175 to it every payday.

Overmyhead_2

Oops sorry - anywhere i have used an apostrophe there seems to be funny symbols and numbers?!

Thank you for the good luck too - I feel I!!!8217;ll need it, this will be our second x

Willing2Learn

Overmyhead wrote: »

Thank you for your response - card 4 limit is £7k so there's £1,100 free I could move from card 1 to there? It will put the monthly payment up but I don't think by too much. I think the now it's around £150 but I pay £175 to it every payday.

If it was me, I would only transfer an amount from card 1 to card 4 that keeps me within 90% of the card 4 limit. Then just pay minimum amount to cards 2, 3 and 4 and focus on paying every available penny to card 1 as it has the highest rate. 'Cos I like snowballs!!!

Overmyhead_2

So snowball calculator estimates it!!!8217;ll take 31 months to pay off the debt at the rate I am now. That may need to be extended if I have to pay less over mat leave if I!!!8217;m struggling. Hopefully that wont be the case x

Overmyhead_2

So happy!! Randomly decided to check my eligibility for a new card again and there was one at 95% - 0% for 32 months. Applied now and have been accepted for 0% for 12 months with a £1,900 credit limit!!

New figures look like this -

Card 1 - £50 (26.20% pa) - £4,200 limit - Bank
Card 2 - £1,850 (17.43% pa) - £2,500 limit - Barclaycard
Card 3 - £3,700 (17.43 % pa) - £4,050 limit - Barclaycard
Card 4 - £6,875 (0% pa) - £7,000 limit - HSBC
Card 5 - £1,650 (0% pa) - £1,900 limit - MBNA

Hopefully that will save quite a bit on interest. I plan to cut back this month and pay the last £50 off that card to be able to close it before payday. I will then tackle card 2 next just to get that down and closed? Leaving the two 0% to last.

Overmyhead_2

Snowball estimate has gone for £1,313 in interest to £766 by the time debt is paid off! Happy with that

Overmyhead_2

Another update is also I forgot to mention I have managed to save a little as well so have £2,500 in savings at the moment.

I know everyone is going to advise using that to pay the debt and save on some interest but given im going to be on maternity leave in 2 months I thought it would be better to have something rather than resort to using cards. My wage will more than half - SMP is £600 per month. That wont cover my outgoings and allow me to pay £500 to cards as Im doing now so savings are a back up in case I can!!!8217;t meet any payments at some point so there arent any marks on my credit file were that to happen.

enthusiasticsaver

Well done on getting rid of most of that card 1 at 26%. I agree with you keeping savings back for maternity leave. Close the cards as you pay them off to stop you being tempted to spend on them again. I would focus on card 2 then card 3. When does the 0% deal expire on card 4?

Willing2Learn

Overmyhead wrote: »

Snowball estimate has gone for £1,313 in interest to £766 by the time debt is paid off! Happy with that

That is so cool. A saving of £550 :T :beer: :T