Help with paying off some CC debt please

natlie

Help please

I have come into a bit of money £1834

I have the following CC debts

Barclaycard £11,308 18%
Aqua £1045 0% for 6 months
Tesco £1979 18%
Paypal £4648 0% on part until Feb then 17% on other bits
MBNA £6448 0% until May 19 then 18%
Virgin £1900 18%

Which should I pay into?

Nat

Willing2Learn

If it were me, I would top that up to £1900 and fully clear the Virgin card.

Edit: Out of interest, does PayPal report your account to any of the CRAs?

natlie

Willing2Learn wrote: »

If it were me, I would top that up to £1900 and fully clear the Virgin card.

Edit: Out of interest, does PayPal report your account to any of the CRAs?

I've just checked on my MSE Credit Club one - Experian and it doesn't show on there

D_M_E

Agree with the Virgin suggestion then when that's clear put everything spare on the Tesco card, and work on each one - since the interest rates are the same target the one with the lowest balance, BUT.....---

When interest on the Aqua starts I would then target that as much as possible to get that clear - their interest rates are crippling.

Have you at least chopped up the cards to prevent any further use of them?

natlie

D_M_E wrote: »

Agree with the Virgin suggestion then when that's clear put everything spare on the Tesco card, and work on each one - since the interest rates are the same target the one with the lowest balance, BUT.....---

When interest on the Aqua starts I would then target that as much as possible to get that clear - their interest rates are crippling.

Have you at least chopped up the cards to prevent any further use of them?

Thank you, that's what I was thinking but always best to check. Ive been on a Money/Budgeting course so I know where I am with everything now. Plus I've just found out that I'm eligible for Universal Credit - which was a massive surprise and has increased my income - I would never have applied for it if I hadn't taken some advice from a lady who provided the free budgeting course

I have got rid of the cards

Nat

D_M_E

Well done - it's a shame the budgeting courses are not more widely promoted - they should be on every college's course offerings.

Maybe something for the government to sponsor - probably not, they would likely overspend, create a useless IT system to administer it and push us all further into debt and see no way out of their fiasco.

Best left to the colleges to satisfy local demand if enough people enquire about such a course.

saajan_12

The interest rates are similar so I'd clear the Virgin one and close the account.

Going forward, 18% is high, you're paying ~2.8k in interest each year. Are you eligible for any 0% balance transfer deals? IF you are, make sure you:

a) check the interest rate after the 0% period as you don't want a significantly higher rate than the card you're transferring from if you cant pay off a significant amount within the 0% period.

b) transfer enough cards to max out your credit on the new 0% card and cancel/close the existing accounts, so you're not tempted into adding to your debts.

natlie

saajan_12 wrote: »

The interest rates are similar so I'd clear the Virgin one and close the account.

Going forward, 18% is high, you're paying ~2.8k in interest each year. Are you eligible for any 0% balance transfer deals? IF you are, make sure you:

a) check the interest rate after the 0% period as you don't want a significantly higher rate than the card you're transferring from if you cant pay off a significant amount within the 0% period.

b) transfer enough cards to max out your credit on the new 0% card and cancel/close the existing accounts, so you're not tempted into adding to your debts.

Hi
Thanks
I dont have a great credit history, I have no defaults or CCJs but I do have an old Arrangement to Pay from 2014 thats still on my file grrr I have quite a lot of debt so I dont think Im favourable - no one seems to want to give me a card anyway managed to get a 0% with Aqua for 6 months- I am focussed on payign the debt off Ive been on a budgeting course and I know what Im doing now

Its not a great time of day with xmas coming but I am trying to make big strides towards reducing the debt

System

natlie wrote: »

Thank you, that's what I was thinking but always best to check. Ive been on a Money/Budgeting course so I know where I am with everything now. Plus I've just found out that I'm eligible for Universal Credit - which was a massive surprise and has increased my income - I would never have applied for it if I hadn't taken some advice from a lady who provided the free budgeting course

I have got rid of the cards

Nat

Hey, how did you find the course?


I'm thinking of going to, but I feel I'm good with money so was wondering if there's any point? I'm still interested in it though

natlie

Sweetcake wrote: »

Hey, how did you find the course?
I'm thinking of going to, but I feel I'm good with money so was wondering if there's any point? I'm still interested in it though

I did the CAP money Course (Christians Against Poverty) I am not religious at all but it was offered through a colleague at work so I went, the course was brilliant it really made me go into minute detail on everything but it also made me realise that I was not saving properly and I wasn't prepared for emergencies I am up £2500 this month as I found out I am eligible for Universal Credit (wouldn't have thought of checking) and my husband and I have increased the sales through our small sideline catering business, we have also started doing markets.

After the course you are eligible for Debt support through them too, they are like Step Change - you can visit them or have someone out to visit thy have centres across the UK

Its a 3 part course the first bit is basic but they give you a workbook to go through and there are lots of useful online tools they provide you with

Nat

blitzboy

saajan_12 wrote: »

The interest rates are similar so I'd clear the Virgin one and close the account.

.

Agree with paying off the Virgin card first, but I wouldn't close the account. Give it a month or 2 after paying it off and see if they will offer any new 0% deals now that your balance is 0, which you can then use to transfer one of the other interest accruing balances across from.


If they do offer you one you could transfer the Tesco balance. Tesco card would then be £0 and potentially could offer another 0% deal too.