advice please

Neenie_2

Hi....

Can someone point me in a debt free direction? I've scanned the site and there is a lot of information to take in. Basically I want to get rid of my existing debt once and for all.. it comes to £3000.. which is credit card, store card and overdraft...

I'm trying to find the best option and lowest interest rate to get this done.. but where to start.. Today, I just made my mind up to be pro-active so this is my first step to being debt free...

Any advice glady received..
Thanks

~Beanie~

That isn't a huge amount so should be fairly easy to get rid of, are you able to get a 0% credit card and transfer the balances to that?

Neenie_2

Hi

Probably could, but not for that full amount. I was looking at a personal loan but interest is 12.9% and the amount I can afford to pay back a month is only £80 so that would mean more than three years to pay back, BUT then it will take me 28 months to pay back the credit card at the moment.. so I really don't know what to do for the best.

Also Overdraft? can you transfer that to a credit card?

thanks for your help

RW2008

Hi Neenie.

I've been in the same situation as yourself. Basically I registered with a couple of different banks, asked for over drafts, and took out a low percentage apr credit card and now I'm debt free. Good luck and all the best


http://www.firstdebtadvice.co.uk/

Neenie_2

I don't really want to take out any more overdrafts.. I want to get rid of my existing one as well as credit cards as well......

CCCS_Alan

Hi Neenie

Welcome to the boards. Taking out credit to pay off credit may not be the best option as this can increase your debt overall. And if you think you are in control of your situation with just making one payment to say a consolidation loan, the temptation to start using credit again could cause your debt to increase because you think you are in control.

The first step would be open a basic bank account away from your creditors as well to get yourself in control of your money. Get your wages paid into the new account and set up your priority expenditures from here. And if you were to pay your creditors from this account you would pay by either a SO or over the counter. Avoid DD to creds as they control how much they can take which could leave you short for your priorities. Only pay them what you can afford as well each month, don’t give into the pressure as they will always want more from you.

If you use the following link Basic Bank Accounts, and in the Basic bank accounts section click on publications it will provide you with a list of accounts and what benefits the account offers.
Be sure that the account has no connection to any of your existing creditors though.

What you are probably wanting to do is try pay off the one with the highest interest amount first as you are not allowing your debt to increase too much. Throw the highest amount to that debt and pay minimum on the others and clear them one by one this way.

You could also ask the providers if they will give you a interest free period or lower rate for a few months if you are in financial difficulties, this is not guaranteed to work but it’s worth a try.

If things really are a struggle though try online advice facility called Debt Remedy where you can complete a financial statement and be provided with advice on the best way to deal with your situation.

Good luck

CCCS_Alan

shopaholic2008

hello and welcome, i have a similar debt as you in cards and overdraft. I tried to change to a 0% deal but got turned down :mad: so at the moment im using a good budget and everything extra im throwing at the highest interest one. Im also doing every survey site i can, playing the free bingo and ebaying anything that is no longer needed to generate some extra cash to throw at the cards. Im over paying on them all and really keen to get out of debt as soon as possible.

Why dont you have a look on the challenges sticky thread at the top of the forum page. Also you could post an soa (statement of affairs) on here and plenty of people will be along to have a look and suggest ways to cut costs.

Good luck and keep us updated on here, as you have a similar debt it would be good for me to see how you get on and pinch any good ideas you come up with :beer:

claireabelle_2

Very good advice from Alan!
Lots of people on these boards, myself included, have made the mistake of consolidating debts and then running up more, the key thing is to pay the most expensive one off first, as others have said, and the minimum payments on the others, then when that debt has cleared, paying as much as you can afford off the second most expensive debt, and so on. This is called "snowballing" your debt payments
There is a very popular website www.whatsthecost.com which lets you put in your figures and tells you how quickly you can be debt free if you "snowball" correctly.
Best of luck
Claire

Neenie_2

Thanks for your reply....

Ok not sure I understand why I would want to open a basic bank account, when I have an account....? sorry...

Also I did the cccs debt thing, and it says I am managing, which I guess I am but I really want to get rid of the debt.

Would transferring to 0% interest card be the best option....?

I am not spending on credit anymore all cards are gone, first step.

Thanks again

Neenie_2

I love the idea of earning more money.. so can you point me to the survey sites etc?
I'm ebaying as well... so I guess that could go to debt.. I was using that as my free spending money.. but it's a better idea to pay off the debt now...

I am paying the minimum on all cards at the moment, so will struggle to pay more off the card with the most on.. so back to ebay I guess LOL.

grrrrrrrr Might try the 0% interest on balance transfer first though.