Had my LBM... now to act.

redmel1621

I have started a diary on the diary page, but have a a question or two that will hopefully get an answer in here.

After having my LBM I have spent all day digging out letter, checking balances, working out repayment options etc etc... I have a list of debt-busting jobs next week and as much as I am not looking forward to this journey, I know it will be worth it in the end. I am hoping we can clear our 22k of debt in 4yrs, as this is when our car finance ends (this finance makes up the bulk of our debt at 12k)

Anyway, after going through everything with a fine toothcomb it is apparent to me that the majority of our debts (other than the car) are not accruing interest. They consist of overpayments or old debts that are frozen or sold on to collection agencies. However, we have a couple through Scan computers, with V12 finance that are not the most cost effective.

My question is: If we apply for a 0% credit card can we use it to pay off these debts and get that amount at 0%? We can ask for an early settlement offer from V12 and it will be a bit cheaper, but I'm not sure if this is the best thing to do or if there is a better option, or if we should just stick to getting smaller debts paid off until we can save enough to just pay off these two debts ourselves.

As you can see I'm not really sure what is best to do.

For information. They are both 29.79%APR and are being paid back over 3yrs. The total amount after interest was added was £1299 and £1119. This now stands at £837 and £863

Any advice please.

middleclassbutpoor

Have you done an SOA?

If you were to keep as and overpay these debts, how long would it take you?

savetosave

Have you done a soft search to see if you are eligible for ant 0% offers?

redmel1621

I haven't done an SOA for here as we have imminent income changes, and insecurities currently, but I am working on a budget.

I suppose I need to find out what sort of early settlement figure we would get. I haven't done a soft search as it will be dh getting any card etc.. I have CCJs so wouldn't get one.

I think we have been paying them for about 15 months so there is another 21mths if we carry on with the monthly amount. I'm not yet sure when we could save the money for an early settlement ourselves, as this will depend on our work situations!!

enthusiasticsaver

If you have debts which have been sold on to collection agencies you are unlikely to be eligible for 0% deals. If your DH has joint accounts with you his credit record will be affected too. If not and he manages to get a 0% deal then offer early settlements and see what your creditors reactions are.

redmel1621

Your right his credit is probably affected. He has been able to get loans and the car finance, but non of them are particularly low interest rates, so it is doubtful he will get any 0% deals.

It was just a thought; I'll carry on with the plan that I have put together already.

Willing2Learn

I don't think there is any harm in trying though. If your dh did happen to get accepted for a 0% card, it could be really helpful...

Edit: Congratulations on arriving at your LBM..

-taff

Just out of interest, have you asked for CCAs for these debts that have been sold on?

redmel1621

There aren't many that have been sold on, unfortunately. This one has and a few Lowell ones from ages ago that I am already paying. A new one that is in my mum's name (long story) so I will just pay that off asap.

The majority of my debt is recent or is made up from large overpayments from Student Loans Company and a few other places... but I am paying most of my debts back with the actual original lenders.

I would say I will remember that for future, but seeing as I have no intention of getting into debt again I shouldn't need to.

MallyGirl

before applying you would need to check whether they accept credit card payments. If they do, would they be reproted as purchases? Sometimes they get marked as cash advances or something else that would be excluded from the 0% deal. If not then you would need a 0% money transfer card rather than a 0% purchases card.

redmel1621

MallyGirl wrote: »

before applying you would need to check whether they accept credit card payments. If they do, would they be reproted as purchases? Sometimes they get marked as cash advances or something else that would be excluded from the 0% deal. If not then you would need a 0% money transfer card rather than a 0% purchases card.

Yes, this is what I was wondering.

I have decided to stick with my original plan anyway. There a re a number of reasons, but the main one being I don't want anymore credit/debt/temptation.

Thanks though