Best way to consolidate

judimcc

I was wondering if anyone could advise me of the best way to tackle my student debts. I have just finished university and have a grand total debt of £3600 in Credit Cards and OverDrafts. AT the minute these are scattered and hard to keep track of to make sure I have enough money in certain current accounts so I was hoping one of you clever people out there could advise me how to put the best foot forward (without giving me a good telling off for getting myself in this situation in the first place - I was young, stupid and greedy!!)

More specifically I have one credit card with £500 at 14.9%, one with £800 at 14.9& and 2 overdrafts at £1500 and £800.

I was considering applying for a new credit card (i think MINT are doing one) and using the interest free period then "tarting " as Martin has previuosly described once this has ran out. But I'm not sure if this could be risky and also can you do a balance transfer to current accounts to clear my overdrafts?? I just thought this would be better than getting a loan as it would be interest free?? But again...I'm still young and stupid!!??

Suggestions welcome.....

James240

To me sounds like u would be best at trying to get a 0%apr card and wacking off large sums off the total before the interest kicks in but other people might have a better idea good luck mate

youngandreckless

Sounds like a 0% deal would be the best way, the cards with interest rates as they are would be a priority to avoid paying more money than you need to.
Only other suggestion would be a loan, but you'd have an interest rate on that, so perhaps not ideal.
You should have some good pointers from people on here as many have done it. The only thing I'd say is be disciplined. I consolidated in the past, but then got complacent and debt crept up with the "spare" credit I had! Hopefully you've got more sense than me though! Good lick x

youngandreckless

sorry that was good luck. Note to self, check b4 posting!

[Deleted User]

Compared to some of the debt on this board yours is not too bad. The 0% cards are definitely the way to go - the higher credit limit the better so you can possibly balance transfer all the amounts onto one which will make it easier to manage.

If you can't then don't worry - you just need to be ultra organised with shuffling the various amounts around at least 3 different cards.

You sound like you have realised you have overspent?

At least you have realised it before too much harm has been done. Now is the time to STOP BORROWING until you have either cleared this off or reduced it greatly.

Hopefully you are now working or soon will be so that will help. Once you get onto the 0% merrygoround make sure you whack off as big a payment each month as you can afford to reduce the amount.

Minumum payments are only for people who already have the money to pay it off but are using it to earn interest as savings.

debtbuster2K5

Judimcc,

Well done for realising at an early stage that debt is a burden you can do well without.

I just have one piece of advice.(And it seems as though you are along the right lines with the 0% cards)

Remember, If you consolidate your debt to one "easy" monthly payment it is very simple to believe that you have "cleared" your debts, and because you are not paying as much monthly, you think you have more to spend than you really do.
Much better to "restructure" the debt (0% cards absolutely the right way to go) and pay out the same each month. (more if possible, by shaving things from your budget), cut up the cards and you will be on the road to financial freedom.

Good luck and keep us posted

Regards

ps_live

Hi Judy,

If I were in your situation, as others have suggested, a decent 0% card is the way forward.

As you have overdrafts to clear, I'd suggest applying for the Virgin 0% card. The Virgin card allows you to "Super Balance Transfer" with no fee. This effectively means you can transfer money into your bank account. This would pay the overdrafts off quickly and easily.

Virgin gives you 9months at 0%. Pay off as much as you can in that 9 months, then look for another 0% card with no fee (RBS and Natwest currently).

Hope this helps, this is only my opinion of course.

Pete :beer:

margaretclare

Hi Judi

You say 'scattered and hard to keep track of', also you're implying that you have 'several' current accounts - is that right?

What might help you is to have some personal accounting software on your computer. I use Quicken, have used it for years, and it's the one single thing that helps me keep track and stay solvent! But others swear by MS Money, or there may be others out there.

I agree with everyone else - 0% cards are absolutely the way to go. For example, my husband is just finishing off paying for our Canada trip 18 months ago, plus a new digital camera, plus a new television set via ebay...he paid for it all at 0% and is just coming to the end of it, the Barclaycard deal runs out in August.

With 0% cards you have to be disciplined and organised, and this is where the personal accounting software is so helpful. Also at your age, read Martin's book, now a best-seller. Also (I'm assuming you're female?) read another one called 'A Girl's Best Friend is her Money'. I gave a copy of this to both my granddaughters, youngest one now in Sixth Form.

Best wishes

Margaret Clare

judimcc

Hi to everyone who has offered me advice on clearing up my student debts...You wouldn't believe the weight that has been lifted just getting some good advice off people who are/have been in similar situations!!

Now that you have reassured me that 0% interest cards are the way forward (...as long as I am disciplined of course), I am on the way to getting something done about it!!

I have just landed my first permanent, full-time, "grown-up" job and am going to apply for my 0% credit card....so here comes my next question....can anyone recommend good 0% credit cards?

(And many thanks for those who have already suggested some..I'll try them now...keep your fingers crossed for me!!)

Many thanks to everyone again...keep the advice flowing!!!

Tony_H_3

I offer up one piece of advise which appears NOT to have been mentioned. As you have decided to go down the 0% BT / SBT route when receiving your new cards and paying off the balances on the existing cards....... CANCEL THEM, the same applies to unecessary bank accounts.

Also allow for saving's in your budget so you can afford to buy what you need without returning to credit.