Am in debt

Starbrite

Hi I am Starbrite and I am in debt,


Wow I said that out loud... Have been kidding myself with this matter for just under a year now.



My debt is two credit cards totaling £6,487.00, wow that is sobering looking at that


I have a Virgin CC at 18.33% - £2,932.21


MNBA at -



Card purchases - 24.9% - £2,370.58

Balance Transfers - 26.9% - £1,297.15


Total - £3,554.79


I have a halifax card, with zero balance, I can transfer £2,000 too and have 0% interest for 12 months....


My question is: If I transfer over £2,000 from the MBNA card to the 0% Halifax, that will help me pay this of as I will be paying slightly less interest


Or shall I keep them as they are?

Willing2Learn

Starbrite wrote: »

My debt is two credit cards totaling £6,487.00, wow that is sobering looking at that


I have a Virgin CC at 18.33% - £2,932.21


MNBA at -
Card purchases - 24.9% - £2,370.58

Balance Transfers - 26.9% - £1,297.15

Total - £3,554.79


I have a halifax card, with zero balance, I can transfer £2,000 too and have 0% interest for 12 months....


My question is: If I transfer over £2,000 from the MBNA card to the 0% Halifax, that will help me pay this of as I will be paying slightly less interest

Hi Starbrite,


Yes, do the transfer to the Halifax card and then pay minimum payments to the virgin card. Pour the money that you are saving in interest into the MBNA remaining balance. Just snowball that debt.

Are you okay budgeting? Or are you going to find it difficult not to increase the debt?

Starbrite

Willing2Learn wrote: »

Hi Starbrite,


Yes, do the transfer to the Halifax card and then pay minimum payments to the virgin card. Pour the money that you are saving in interest into the MBNA remaining balance. Just snowball that debt.

Are you okay budgeting? Or are you going to find it difficult not to increase the debt?

Thank you that is what I was thinking, yet needed some reassurance...


I'm now going to the bank of mum rather than the actual bank when short, have got my outgoings down to as min as possible, Just need that all evasive job to get out of this rut... It will happen, it has too:D


Thank you xx

DCFC79

Starbrite yes move as much of the debt as you can to the card but don't add to the debt as you will be back where you are. You will need to restrict your spending.

Starbrite

Fabalous, just requested for £1,900 to be transfered over as that is the max I can transfer


Thank you xx

DCFC79

Starbrite wrote: »

Fabalous, just requested for £1,900 to be transfered over as that is the max I can transfer


Thank you xx

Is the card 0% for transfers ?

Teamocil

Wait! Why do you need to use the Halifax card for transfers when there are much better offers out there?

enthusiasticsaver

Are you employed and what is your credit record like? The interest rates are high on both cards and although moving £1900 to 0% is good moving the rest of it would be even better.

Stopping using the cards is essential and budgeting to live within your income.

MallyGirl

Teamocil wrote: »

Wait! Why do you need to use the Halifax card for transfers when there are much better offers out there?

OP mentioned needing a job so this is probably the best they can achieve till that happens

Goudy

I'm not saying this works for everyone, but there are ways to make your money and 0% balance transfers cards work even harder for you.

Transfer the balance and set up a DD for minimum payment every month.
As long as you pay the minimum every month they won't alter this 0% rate until the end of the agreed period.

Work out what you would need to save every month and add in the interest that will service the debt before the end of the transfer period.

Then use the savings and interest to pay off the balance.

At the moment Nationwide's Flex Saver pays 5% with a max £250 a month deposit over 12 months.
Saving that will add £144 to your savings in 12 months.

If you are worried about dipping into the savings, something like Leeds BS regular saver pays 2.55% but you can only make one withdrawal in 12 months.

I tackled nearly £6000 worth of debt in 12 months with a 0% card and using regular saver accounts.
I saved around 37% compared to making normal payments to the original interest attracting card.

Starbrite

Yes all fantastic when you have an income coming in!



Alas I am currently unemployed, picking up temp work when I can. Circumstances got me when I am today.


Graduated uni in July 2017, struggled to find a full time job, had part time job, put the surplus each month on the CC in the hope I will get a job sooner rather than later. Took until Jan to get a full time job which is/was low paying £18,500 £1,300 a month after tax. I worked 40+ hours a week on a roat basis so was impossible to get a 2nd job to help with the short comings.


Feb I stupidly missed a payment on the Virgin CC therefore lost my 0%, I made the payment a week earlier than the due date not realising...


Have tried since Jan to move the cards to 0% with no luck, this is the only option I have to move a chunk, ok be it a small chunk to a 0% card.


I am aware on how to budget and live within my means, but when your wages don't cover the bills, fuel and food it is very hard to...



Here are my outgoings:



Rent - £520.00 a month
Council tax - £107.00 a month

Water - £20.00 a month
Elec -£20.00 a month
Gas - £22.87 a month


Mobile - £20.00 a month
TV License - £12.37 a month
Car insurance - £56.19 a month - all paid up starts again end of sept
Broadband - £25.00 a month
Saving plan - £25.00 a month



Total £841.91


Then I have my credit card payments, food and fuel.



Fuel my mum has been helping me out, food I shop at Aldi/Lidi



If anyone can suggest anything I open to suggestions... Love to change my council tax supplier!