How to clear this Simply Be debt?

georgie84

Hey all new to the board and after some help please.

I’ve been a bit daft and got myself up to a three grand credit limit on Simply Be (I know, I know).  My current balance is £2728 and I am making monthly payments of anything between £110 - £150, however, they are of course charging me interest of £100 pcm and despite not buying anything for 6 months and in that time paying them over £700, my balance is going down slower than I’d like.  The £110 - £150 is not a lot, but it is what I can afford based on my current salary.

I rent privately and live in the Channel Islands (not a cheap place to live).  As well as my SB account, I have a monthly car payment of £195 per month which is finished next month, so this gives me an extra £195 a month.  I am looking to potentially buy my first property next year also (with partner who currently owns his property).

My question - should I use the extra money along with what I am paying already to clear the account? i.e. increase monthly payments to say  £330 a month, which will potentially take ages to clear; or should I take on a personal loan for the amount of the Simply Be amount with the same finance company I have my car loan with (I’ve never missed a payment and have a great credit score) over a year and close down the SB account?  Or should I take out a credit card?

Please don't vilify me, I know I’ve been a bit spend happy, but I am trying to get out of the situation, so any advice would be really helpful.

thanks in advance, G

Beeboo23

What’s the interest rate and your SB account and what would it be if you took out a loan. If it would be significantly cheaper go for the loan. 

[Deleted User]

Might be an idea to go for the loan if its lower APR (probably will be) as long as you close the SB account.

foxy-stoat

Try and find a credit card with a Money Transfer option.  Pay £275 a month once you have and it will be over in 10 months, dont buy anything on the card and dont just pay the minimum.

MEM62

georgie84 said:

i.e. increase monthly payments to say  £330 a month, which will potentially take ages to clear; n advance, G

One year is hardly ages, is it?  I suspect that the period of any loan that you are considering is longer.     

sourcrates

You cannot borrow your way out of debt, pay it back as quickly as you can, and do not concider any further borrowing.

Any new loan is likely to take you much longer to repay, and cost you a lot more in interest.

Consolodation is not recomended as a way to repay debt, it just leaves you in debt for longer and encourages further spending on new credit lines as you get flustrated the debt is not going down quickly enough.

georgie84

Thanks for all your help.  I’ve emailed SB to see if they would consider freezing the interest for a period of 6 months.  If they do that then I will be in a much better position to be able to clear the debt.

molerat

Getting the interest frozen will likely result in an AP marker on your credit file, a big red flag to anyone else you would want to borrow from.

Thenonameleague2

foxy-stoat said:

Try and find a credit card with a Money Transfer option.  Pay £275 a month once you have and it will be over in 10 months, dont buy anything on the card and dont just pay the minimum.

And once its paid close the account.