What Should I Do?

southernscouser

I've just got an Amazon CC with 0% for 6 months and a limit of £5,300.

I want some advice as to how much to transfer and from what card. I can only really afford the minimum payment so not much would get paid off. The problem is that I don't want to transfer a great whack and then in 6 months time start paying a higher APR than I am now if I get refused any more 0% in the future!

Egg green (Limit - £8,600) Not sure of APR £347.55
Capital One (Limit - £10,300) £7,851.16
Morgan Stanley (Limit - £2,700) 5.9% for life £2,434.27
Tesco (Limit - £5,600) 7.9% APR for life £5,463.54

Capital One is a bit confusing as I'm paying 3.9% on some of balance and 12.9% or something on the rest. If I did transfer from this then it would be the 3.9% first!

skintchick

Are you sure you can only afford the minimum?

southernscouser

At the moment yes.

Am in early stages of sorting my debt out and although it sounds crazy I've never really calculated how much my outgoings are, hence why I'm broke!

Have started keeping a note of everything I spend (£144 this month already and it's only been 3 days) :eek:

Will probably have a better idea of how much extra I can pay in a months time.

skintchick

You could start by posting what you know you spend on in terms of bills, and we can see if we can whittle them down a bit.

Can you get your bank statements for the last couple of months and do it from those?

southernscouser

OK, these are all monthly.

Income:

Salary - £,1319.18

Outgoings:

Rent - £250
Mobile - £30 (contract ends in December)
BT - £10.50
Internet - £22.50 (was £30 until I phoned up)
Capital One - £242 min. payment
Tesco - £165 min. payment
Morgan Stanley - £50 min. payment
Loan - £371.57 (another 60 months to go)
Football - £15
Petrol - £120

Total: £1,276.57

Leaving £42.61 left over.

skintchick

First thought is your mobile. I am on Virgin, and don;t pay any line rental, so I pay around £8 a month and am trying to get that under a fiver. I think it costs extra to go on it, but you save so much if you don;t pay line rental so you should look into that when your contract runs out.

Do you need the internet? Or could you use it at work/the library/ a mate's house? I use the work's connection (and indeed their time!) so don;t have it at home.

Football. Is this totally necessary or could you give it up, just for now, so you have some extra cash to throw at your debt?

Petrol seems high too. What mileage do you do?

Bit concerned you don;t appear to eat!! There's no budget for food or for house bills like council tax, water etc - is this included in your rent?

There's also no accounting for what I call annuals, but are really the non-monthlies - hair cuts, dentist, car tax and insurance, MOT, servicing, Christmas, people's birthdays, etc.

I know it will be scary to include all of this, but give it a go. And please clarify your situation ref living (at home/whatever) and food.

Thanks, and then I will try and be more helpful!!

southernscouser

Living with my folks so the £250 p/m is everything in!

I drive into work as it is cheaper than public transport and also my hours aren't great so I would on some days have to pay for taxis to get home, so this is the cheapest method.

I could give the football up but I don't in all honesty want to. It's really the only exercise I get and as they say you can't put a price on your health!

Like most things I don't need the internet but I do quite alot of selling on eBay so it kind of pays for itself. Will look into getting a cheaper supplier.

As for the stuff that comes yearly its hard to put a figure on it but here goes.

Haircuts - £120
Car Insurance - £420
Tax - £160
MOT - £25
Birthdays - £150
Christmas - £150

skintchick

You see, now you actually don't have anything left over, as your 'annuals' add up to £1.025, which spread monthly is £85.42 a month, so you are now in defecit by £42.81, which you need to somehow find in your budget.

You should put you £85.42 in a savings account so when your big bills happen you have it to hand and don't have to use credit. You'll also earn some interest on it which is free money and that's always good!!

This means that I think the internet is going to have to go completely. Surely you have a (richer than you) mate who'd let you pop round and put your stuff on eBay on their computer? And then you could manage them from work during your lunch break?

I also think footy is going to have to go, as you simply can't afford it I'm afraid.

Question: if your rent is all in, why are you paying for the BT landline?

Now, I know none of this is dealing with your original question, but at least it will help you avoid adding to your debt when the big bills come in, which is kinda related.

Back to your question with a warning that I am not as expert on this subject as others on this board (where are you guys?):

You need to work out what you can realistically pay off in the six months, and as I get confused by interest rates, I'm not really the person to advise you!!

I wonder whether you ought not to transfer from the Capital One, so that your payments on the remainder of that card are then attacking the higher itnerest rate, which must be crippling you.

You need to call them and find out the exact situation with the interest rates on that one.

Also, call Egg and get the rate on that one - you need to know exactly what's going on.

Please can someone else offer their better informed opinion????

mountainofdebt

Have given you my opinion on on this, on your inital thread although I can appreciate with a username like mine a 2nd opinion is always safest!

Given the comments in your 3rd thread re tesco payments, I think that you are better transferring away from tesco and reducing your limits as far as possible.

Also given that you have been accepted for a 0% card at your present levels, provided you eliminate any excess credit limits and keep your nose clean why would you be refused any more 0% cards?

I know this is a tough call to make and I won't have to suffer any financial balcklash if you follow this suggestion and it all goes pear shaped but unless anyone else has any other cunning plans......

southernscouser

Have transferred £4,470 to the 0% Amzon card from the Tesco card. They would only let me transfer up to 90% of my limit. Never heard of that before! This will free up an extra £40 odd this month. Anything left over will go to paying off the Egg card and then the biggie, the Capital One card.

Although I've barley started I'm feeling alot more positive about things.

Also going to ask for a payrise tomorrow! Bring it on! :j

southernscouser

mountainofdebt wrote:

Have given you my opinion on on this, on your inital thread although I can appreciate with a username like mine a 2nd opinion is always safest!
QUOTE]

No I really appreciate your advice. I've lost myself with what I've posted and whenever I try and ask new things I repeat what I have already said!

To many debts and APR's ain't good for the old brain!