new DFW :) help/advice please?

cherrycokester

Hi, I have decided that my new years resolution is to ditch my debt, as its really getting to me.

My SOA

Income:
£920 per month

Outgoings:
rent: £300
Council tax £80
Personal Loan £180
Car Insurance £22
Petrol: £40
Credit Card: £170
Food: £90 (approx)
ISA: £10

Total Outgoing £892


this is present outgoings - my boyfriend has agreed to pay the utilities etc if i pay rent and council tax.
I have approxamately £3000 left to pay on my personal loan, which actually doesnt bother me so much as i have a decent interest rate, my personal loan is due to be paid off July 2009.
The thing that really bothers me is my credit card debt which is about £6000, i just feel like i will never have it paid off, i am being charged a ludacrus amount of interest by capital one. I was going to transfer the balance so i applyed for another card but it only has a £3000 credit limit, should i transfer half the balance so i can make interest free payments for a year on half and concentrate on trying to pay off the other half? or should i apply for another credit card?
Also i was thinking about opening another bank account to put any 'extra' money into so it doesnt get swallowed up into my black hole of a bank acoount? does this seem like a good idea?

ok i think this is a long enough post already so i will stop now, any help or advice you can give me would be much appriciated. Thanks

Sassamac

I would devote all your 'extra' money towards making extra payments on your credit card.
what is your credit score like? the 3k limit is better than nothing and at least that means that half your debt isnt costing you anything. if your credit score is good then its worth applying for another card (give it a month or so though as applications close together dont look good).
whats the interest rate on the capital one?

sunshine_shell

Do you really need to put £10 a month in your ISA? is it for anything or would it be put to better use on your debt

on your SOA you haven't put down birthdays, chirstmas, haircuts, mobile.

How easy would it be for you to get an extra Job or a better paid one?

cherrycokester

my credit rating as far as i can tell is pretty good, not sure on the interest rate on the capital one card but it seems extonrtionate.

i use the ISA money as 'present money' - i craft a lot so most of the time i can make birthday/xmas presents which saves a bit of cash.
Im scared of the hairdressers (yep you read that right!) so i avoid going, the lady i normally go to is not back in business yet after the floods so i've not had my hair done in 6 months!
and i ditched my mobile phone contract in december now i just dont use one.

Merlot

I would personally apply for another low APR credit card, but only if your credit rating is good enough, this is a link to Martins page regarding balance transfers:http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

HTH

Merlot

cherrycokester

Merlot wrote: »

I would personally apply for another low APR credit card, but only if your credit rating is good enough, this is a link to Martins page regarding balance transfers:http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

HTH

Merlot

thanks, i think i will look into that tomorrow.