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Advice on how to clear debt
overspender90
Posts: 5 Forumite
I am hoping this is in the correct place, apologies if not.
My current outstanding debt is: £7600 on a Hitachi loan at 7.8% APR until Jan 2020. I pay £585 a month toward this. £7448 on halifax credit card at 0% until Jan 2020. At the moment I am struggling to make decent dent in my credit card debt . I earn £1590 a month and my outgoings add up to £452 (not including debt repayments).
MBNA have offered me a money transfer offer at 3% fee for 0% until December 2020. I was wondering is it worth doing this to pay off the loan. I worked out if i paid £325 a month i would have the loan cleared by December 2020. Then if i pay £413 per month until Jan 2020 off my Halifax card these would be cleared.
I would not be using credit cards for purchases at all and i would cut the cards up to just pay off.
Do you think this is a better option? or would i be better off just keeping on with the loan and trying to pay what i can off the credit cards then when the loan finishes i can use the spare £585 to pay off cards?
any advice appreciated!
My current outstanding debt is: £7600 on a Hitachi loan at 7.8% APR until Jan 2020. I pay £585 a month toward this. £7448 on halifax credit card at 0% until Jan 2020. At the moment I am struggling to make decent dent in my credit card debt . I earn £1590 a month and my outgoings add up to £452 (not including debt repayments).
MBNA have offered me a money transfer offer at 3% fee for 0% until December 2020. I was wondering is it worth doing this to pay off the loan. I worked out if i paid £325 a month i would have the loan cleared by December 2020. Then if i pay £413 per month until Jan 2020 off my Halifax card these would be cleared.
I would not be using credit cards for purchases at all and i would cut the cards up to just pay off.
Do you think this is a better option? or would i be better off just keeping on with the loan and trying to pay what i can off the credit cards then when the loan finishes i can use the spare £585 to pay off cards?
any advice appreciated!
0
Comments
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Why are you trying to make a dent in your credit card debt if it is at 0%? Pay the minimum on your cc and overpay on your loan.
Good idea to fill out a statement of affairs and we can try and help you make some savings/cutbacks etc http://www.stoozing.com/calculator/soa.php"Everything comes to him who hustles while he waits" Thomas Edison
Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:0
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