Wwyd

LilacPixie

I don't know if any of you have catalog accounts with the littlewoods group of companies. We have 2 accounts. One with littlewoods and the other with additions.

Earlier this week we received letters informing us that Additions APR was rising from 26.49% to 39.70% :eek: and littlewoods from 29.8% to 39.7%:eek: :eek: from 28th June2008.

We have around £230 outstanding on additions and £80 on Littlewoods. Realistically we could maybe clear another £100-£150 before then depending on OH and overtime.

My OH has a credit card that we have recently cleared which has an APR of around 28% but 54 (i think) days interest free on purchases.

Would you work !!! off to pay as much as possible before 28th June and then pay the remaining with credit card.

Or

Switch it to credit card now and then throw every spare penny at credit card until clear. Hopefully July.

I know interest wise switching to credit card now makes more sense but the card was like a millstone around our neck for a long time and I'm struggling to come to terms with putting anything else on it.

smashedbooboo

Hi lilac, not sure about this one, I think someone with more knowledge about APRs will be along soon. Dont be fretting now hun. Keep that BP down. x x

peb

Have you tried running this through the snowball?

can't be of more practical help.

LilacPixie

snowball isn't showing any change to DFD think its because the amounts are so small compared to what we throw at debt anyway.

pamril1

Have a look at the following link it may be useful with regards to this issue http://forums.moneysavingexpert.com/showthread.html?t=926565
a few tips from an insider can't be bad.

Poosmate

Hi Lilac.

Do you have any commissions due on these accounts which you could order to help pay them off?

Those interest rates for the catalogues are like daylight robbery! At least your credit card APR is 11.7% less and if you put the balances onto the credit card you could pay what you would have been paying to the catalogue towards the credit card debt effectively still paying it off in the same timescale only paying less interest.

Hope that helps.

Poo

LilacPixie

I think that is what we will do Poos. I'm just really struggling witrh the idea of putting debt of a card that only 1 week ago I felt so proud of clearing.

I guess that effectivly if i do it I will be clearing 2 debts and then the card once again within 6-7 weeks.

Poosmate

Well done Lilac.

Just a thought though, if you wait to transfer the balance until just before 28th June, you will have made another payment to the catalogues yes? That would mean there is even less to go on the CC. Even better would be if you could manage to pay the balance on the credit card in full on your first statement you won't pay interest on it will you? Don't you get 40-56 days interest free by paying off the full balance? I've never been in the fortunate position to be able to do that so not sure if it would work that way in your instance. Worth thinking about though and someone else will put me right if I have got it wrong.

Good luck anyway

poo

LilacPixie

I think the interest free bit on the CC is 54 days

The position we are in is as follows. It might help explain a bit better.

we throw £800 a month at debt.

DH loan £134 a month 10.2% apr
My loan £143.10 a month 8.9% apr
Car Finance £275.97 a month dunno the APR but no overpayments allowed.
sofa HP 20.20 interest free until Feb 09
TV HP £16.14 16.9%
That equals around £590.

We then have the following to pay from the remaining £210

Littlewoods around £100 o/s minimum £5 APR 35.9 rising to 39.7 28th june
Additions around £230 o/s minimum £12 ish APR 29.8 rising to 39.7 28th June
Next £380 o/s minimum £35 APR 26.49%
Plus an empty CC apr around 28% and a 1k limit.

The way I see it we should pay the minimum £35 on next account then use the remaining £175 to clear littlewoods debt and reduce additions by £75. I should then call additions a few days later for an up to date O/S amount including interest to date and then note and pay that amount with the CC. Come 1st July when monthly salary arrives again I should pay the total amount that i put on the CC off in one swift payment as there will of been no interest charged.

Does that sound OK?? Or is my thought trail all confused.

Poosmate

LilacPixie wrote: »

I think the interest free bit on the CC is 54 days

We then have the following to pay from the remaining £210

Littlewoods £100 o/s
Additions £230 o/s
Next £380 o/s minimum £35 APR 26.49%
Plus an empty CC apr around 28% and a 1k limit.

The way I see it we should pay the minimum £35 on next account then use the remaining £175 to clear littlewoods debt and reduce additions by £75. I should then call additions a few days later for an up to date O/S amount including interest to date and then note and pay that amount with the CC. Come 1st July when monthly salary arrives again I should pay the total amount that i put on the CC off in one swift payment as there will of been no interest charged.

Does that sound OK?? Or is my thought trail all confused.

Nope, thought trail sounds fine to me but then I have done an allnighter on here so maybe we are both confused now and when we read this tomorrow it will make no sense at all!

Anyway, sounds like a plan to me! I think you have it sorted! Then you'll have £210 to pay off Next so that debt will be gone too by August!

I've kind of just twigged that these are storecards rather than running a catalogue yes?

Good luck anyway

Poo

andromache_2

Sounds good - but are you sure that paying off additions with a credit card counts as a 'purchase', rather than a cash advance, i.e. that you will actually be getting it interest-free? If it isn't, you can just use the credit card on your normal purchases and use the money freed up from that to pay off additions, then pay off the credit card next month. (Obviously being dsiciplined and not spending any more than normal.) Sorry - I'm sure you know what you're doing, just checking! xxx