Need VERY simple advice re credit card debt

wordsfan

Mh issues, poor maths skills. Got a credit card last year due to over optimism and moving house and wanting to rebuild credit rating.

Currently £874 balance, 34.9% interest, paying JUST over minimum each month, their online repayment calculator says it'll be paid back in 2 years.

Wondering if I can balance transfer to cheaper/0% interest but still have it as an emergency option for spending if necessary?

As I said please keep it very simple. Also I do realise now that maybe it wasn't the best way I could have managed things - mh and circumstances at the time, plus as I said wanting to raise my credit rating (yes I know that's not a definitive thing but hopefully people will know what I mean). So please no having a go at me for being irresponsible? Thanks

Willing2Learn

Why not do an eligibility checker for a CapitalOne balance transfer card? I believe they only do a six month promotion, but it would enable you to repay more of the debt and less of the interest.

Indebted2U

Hi wordsfan.

Why not use Martin's elegibility checker tool to see your chances and potential savings?
https://creditcards.moneysavingexpert.com/?balance-transfer&_ga=2.109545541.1904629633.1497260499-329540102.1479896452?p=0&gclid=EAIaIQobChMIjOH66qTj3QIVS7vtCh2HxgVFEAAYAyAAEgLd7fD_BwE

[Deleted User]

Simple advice - credit scores and ratings are made up.

Also to build credit history repay the card in full each month rather than carrying a balance on a 34.9% interest card

Terry_Towelling

Very simply, yes, if you can get a BT card at 0% with a high enough credit limit, that would cut the cost of your debt. As for keeping the existing card for use in emergencies, that's fine too.

Slightly more complicated advice, you need to be clear with yourself what emergency use of your credit card actually is and you need to clear it in full each month if you do have to resort to it, or you're back on the slippery slope.

If you are unable to get a 0% BT card, you should try to pay just a little bit more of your balance each month. Take a hard look at what you buy on a daily basis and consider whether you can avoid the fripperies for just 1 day in each week/month - e.g. no takeaway meal in one week, no takeaway coffee for one day a week, one less pint of ale/glass of wine a week and you'll really notice the difference. Switch off unnecessary lights, drive more economically etc etc etc. It's all about thinking through the things that cost you money.

You can be more radical if you like but take care not to be too austere - don't lose too much enjoyment from life, unless you are super-disciplined. And, apologies if you are already forgoing all those little luxuries.

Dobbibill

Hi wordsfan,

Yes, you can apply for a BT card.
If you do a BT it does not close down the old card, it just pays it off.

Yes, you can keep the old card for emergencies.

If you want to explore ways to free up more funds to throw at the debt ASAP, it may be worth heading over to the DFW board and posting a SOA.

All the best

Stephenmac

Hi. Just want to say apply for better cards. You will get better deals now you have the skanky one. Good luck.

foxy-stoat

Get another credit card, balance transfer the debt and cancel the first card, you dont want to spend on it if the interest rate is that high, emergency or not....also - if you cannot overpay the card to clear it in a few months then you may need to look at selling stuff that you have bought with your £874.

PRAISETHESUN

Simply - a balance transfer (BT) will simply move the balance from one card to another, it will not close the original card.

Use a few eligibility checkers to see what BT cards you may be eligible for - with poor credit history your options are likely to be limited. You may not get a high enough limit, or a long enough period at 0% but every bit helps with a 35% APR. Throw everything you can at it otherwise the debt will linger around for a long time.

As for using the card an an emergency fund, I would recommend against it unless you are certain you can pay it off before the 35% APR kicks in, otherwise you are just going to get back into the same situation you are in now.