Credit Card Debt?

dmsu86

Hi im new to this site and find very useful information on here but im looking for help if any of you guys can help me out?

Im 21 and so is my gf.

The Problem - About a year/18 months ago my gf got a credit card (before i was with her) and managed to rake up £2000 in expenses!!!!!, she has since cut up the card and begun to pay it off £100 per month (im not sure whether she is paying interest but i assume so?) think she about £1500 to pay off

Now..... i would like to begin saving to buy a flat with her although with this debt looming it makes things difficult. I would like to help her pay it off maybe by doubling her payment to £200 a month. Then after its paid we can start saving together properly

What are my best options? is it worth trying to switch to a different credit card to pay it off? loans etc?

Any help or advice is much appreciated

Regards

Dan

**Amy**

Hi Dan

Firstly i would find out what APR she is paying on the card. If she has a good credit history, maybe try and switch to a 0% APR. That way, you are paying off purely the debt, and obviously it will go much quicker.

:beer:

dmsu86

this was her first and only credit card so her credit history will be poor im guessing?

**Amy**

Not necessarily. If she has met all of the payments etc. it may be quite good.

But find out about the APR on her current card first.

That way you know where you stand. I wouldnt suggest you getting a credit card or loan out to pay off her debt though (thats what i did and ended up in a lot of debt by an ex!).

dmsu86

no i would purely pay her cash towards the debt eg give her £100 a month

dmsu86

0% APR cards, are they hard to obtain? do you have to pay back the money faster?

**Amy**

Thats good. Definitely find out the APR of the current card.

Then maybe think about applying for one credit card with 0%. If she doesnt get it then stick to the current credit card.

**Amy**

dmsu86 wrote: »

0% APR cards, are they hard to obtain? do you have to pay back the money faster?

I dont know if they are harder to obtain (i doubt it as most credit card companies run an opening thing of 0% for 9 months etc.), you do not have to pay the money back faster, but obviously its in your best interest to, before the 0% runs out. If you pay back the £200 a month you should clear it within 8 months. If you dont pay the amount back before the 0% is up, you can always look at transfering your balance to another 0% credit card.

There is a section on the main MSE website about credit cards etc. might be worth having a look.

dmsu86

Ok thanks, well i THINK she has transferred the debt to another card before i met her so im guessing that card is probably 0% APR

If so then me adding to her payment will speed the clearance of debt up.

But if she is paying £100 a month on a £2000 debt im guessing its highly unlikely that this is on a 0% APR card. if it isnt could she just switch AGAIN to another 0% APR card then whatever her balance remaining is like you said it would only take 8/9 months to pay it off together

What is the cost of switching from one 0%apr card to another? eg transferring the debt

Thanks for your advice

**Amy**

Im unsure about all ins and outs, but this bit should help you:

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

:j

dmsu86

So if we switch the debt to a virgin card

15.9 % APR (typical rate)
0% APR for 15 months on balance transfers (2.98% handling fee)

How much is it going to cost on a £1500 debt? what is the 15.9% all about?