Quickest and easiets..

Pip1987

Hi..

First time on here.. Not sure im doing this right!?

I was just wanting some advice on the best method of getting rid of my debts by the end of the year..

Current debt:

Loan = £2,500
Car = £1,000

I pay interest on both at the moment. Is there a card I can use to transfer both debts onto so I dont have to pay the interest? Or should I just keep making the payment, plus extra when I can?

Any help would be great
Thanks

Ilona

Pip1987 wrote: »

Hi..

First time on here.. Not sure im doing this right!?

I was just wanting some advice on the best method of getting rid of my debts by the end of the year..

Current debt:

Loan = £2,500
Car = £1,000

I pay interest on both at the moment. Is there a card I can use to transfer both debts onto so I dont have to pay the interest? Or should I just keep making the payment, plus extra when I can?

Any help would be great
Thanks

Hi and welcome. Yes you are doing it right.

I can't help you with juggling cards, as I have only one. I personally see no point in moving debt around, because it doesn't go away. Some will move it onto cards with a lower interest rate, and it might work, but in my eyes that is only delaying the problem.

Getting rid of it totally is the way I would go. Cutting right back on spending, stop going out, stop impulse spending, stop buying stuff you don't need. Once you have paid for your rent/mortgage, utilities, car running costs, and food, there is very little left that you actually need to pay for.

Start a spending diary, account for every penny that comes into the house, and every penny that goes out. It's all down to how dedicated you are to getting rid of the debts. Change your mindset, work out your priorities. What are the few things that you need to pay for, all the rest is frivolous stuff that you can do without. All spare money left after essentials pay to the debts. Good luck.

ilona

Willing2Learn

Hi,

You would need a 0% APR Money Transfer card to clear those two debts. There is a fee for the transfer.

https://www.moneysavingexpert.com/credit-cards/money-transfers/

jtmerralls

Clarify the interest rates on the car and the loan.
Do a Budget Planner with what comes in each month/week and what HAS to be paid out.
Depending on the rates, it is often better to consolidate with a view to:
Move two debts to one
Reduce interest rates
Give flexibility to reduce term/ payments

Whilst it may be an option for Money Transfer cards, your Bank may be a good place to approach to do an Eligibility search for a loan and compare like for line with what you are currently paying out.

enthusiasticsaver

I am not a fan of moving debt around but if you are paying high interest then applying for a low fee 0% money transfer card is an option if you have an ok credit record. Then make a plan to pay it off. How much can you afford to repay monthly?

EssexHebridean

Hi Pip! welcome to DFW!

First thing is to do a Statement of Affairs (SOA) and if you feel comfortable to do so post it in here - we can then take a look and see if we can identify any areas you may be able to make savings that you have perhaps missed. I'd suggest that you do this before thinking about the possibilities of shifting the debt around, as then you have a solid budget in place and know how much you can make spare each month.

The link for the SOA calculator is in my signature.