Best option clear debt and pay least intrest

sim2335

I have a buy to rent flat on morgatge. 

Od limit 2000 remaining left 146, may need to spend £40 before I get paid getting charged 1.58 per a day intrest.

Credit card 534.31 use to pay full just chnage this now to minimum 

Paid salary on 20th April

Salary after tax £1256

Outgoing 

pay 550 ground rent etc ( first time as I only got it October last year)

Pay 100 -300 depending if rent goes.

20 medcine

100 food

100 car

50 emergency 

Credit card 534 (unless I pay minimum)

I don’t want to mess up my credit rating with payment plan or anything. 

Just to let you know in past I’ve had ccj etc and never want to go there again, 

I tried loan to clear it all but got declined.

I’ve put everything on hold till my debt clears, for example eating out.

Buying book or video game etc.

The only time I will eat out is if I have pre planned event already booked like they’re show

Mark_d

Is it an option to sell your Buy To Let flat?

enthusiasticsaver

Can you not make an arrangement to pay ground rent in instalments? 

I don't really understand your situation as that soa is not complete.  

You say you have a BTL rented flat.  What rent do you receive from that and how much do you pay in mortgage and tax? 
Are you living in a separate rented flat and if so how much rent do you pay?  Why is there nothing in those outgoings to show utilities like gas/electric and council tax? 

You have a low salary so I do wonder if you have overstretched on buying a property? 

The overdraft is your most expensive debt so in the short term I would see if you can pay the ground rent in instalments and chuck everything at the overdraft.  Can you move the credit card to 0%.  Don't apply for debt consolidation loans. 

sim2335

Mark_d no that’s not option

enthusiasticsaver 

I am in future, this is backlog, it just takes them ages to transfer over so no fault of mine.

560 rent atm but hopefully should go up too 700 if tenants  agree to price increase, this month if not they will have to leave.

700 is under the set amount plus I spent thousands doing it up joining council etc 

860 a month is mortgate and tax to bank

I live with my parents and don’t pay rent or bills

Gas electric etc tentas pay

I actually have a extra 500 a month after tax salary but that’s going to share save which end next year, can’t cancel because I’m gona profit 6-10k from it and can’t lose money

I owe my mum loads so will use that to pay her off, it was her decision for me get property not mine although I’m glad I have it for future.

Will call them about ground rent and Chuck at overdraft minimum credit card for now but will hit that once overdraft gone.

How does that work moving credit card to 0% intrest. 

Thanks 

sim2335

Should I do this to help with the overdraft

Money and balance transfers

Make a money transfer (to move money from your Virgin Money Credit Card straight into your bank account)

You cannot make a balance transfer from any other Virgin Money, Clydesdale Bank, Yorkshire Bank or B credit cards, or from non-UK financial organisations, or store cards which don’t have the VISA or Mastercard logo.

can’t do that I’m with American express

enthusiasticsaver

If you cannot do a money transfer to American express it won't help you. You could BT the credit card to 0% if you can get a deal and just pay minimum until the overdraft cleared. Then pay off credit card. It sounds like the BTL is actually costing you money so why are you hanging on to the property? 

sim2335

Thanks yeah that what I’m gona try, the btl cost now but in future it will help me, plus the tenants are happy to accpect rent increase 

enthusiasticsaver

If the mortgage is 860 and the rent is 700 then you are losing minimum 160 each month.  On top of that you have maintenance and the other expenses of being a BTL landlord.  Not sure how it helps you either now or in the future.  

TheAble

I would look to try and increase your liquid holdings if you plan to continue with the btl. At the moment you have nothing to fall back on in the event of void periods and non-payment of rent for example; plus you have to factor in maintenance costs etc. You appear to be quite significantly under-resourced based on the numbers you've detailed so I would proceed with caution.

sim2335

enthusiasticsaver  that’s what I’m gona try and do with credit card

It’s costing money now, in future flat prices should go up if I sell and rent goes up.

Also if I ever need to move out I have a roof

The maintenance etc as I’ve already paid thousands it’s unlikely there will be much for awhile.

The able

What do you mean by increase liquid holdings?

The maintenance etc as I’ve already paid thousands it’s unlikely there will be much for awhile.

I’m gona get rent grauntee too so if they don’t pay.

TheAble

I just mean have a decent amount of cash on hand to get you through any bumps in the road. It may well be a good long-term investment but btl does have its challenges in the short term.