Store Credit Debt

youngmoney_2

Ok so I had a typical situation around 9 months ago where I stupidly bought something I could not afford on credit for one year. Great, I thought, I'll pay it off monthly.

Of course then my employers went bust and I was out of work and I had other debt to focus on as well. To cut a long story short I owe Jessops £2k and I have to pay it before Jan 13th if I don't want stupid store credit rates.

One of the options open to me is a loan, I have noticed Nationwide (my current building society) do a loan for £2k for 12 months and you repay around 6.9%. This seems good.

Any other suggestions or a better/cost effective way for me to get rid? I would also mention I am in a solid payed job now of £24k.

Thanks

Bestthingsinlifearefree

HI

What about applying for a o% interest balance credit card e.g Amazon or one which allows you to transfer the balance for just 2% of the ballance and then the transfered amount is 0% till 2007 e.g Capital one..or something..if you check out the credit card section there are lots of cards out there withthese types of deals. JUST MAKE SURE YOU PAY IT OFF BY THE TIME THE PROMOTIONAL PERIOD / RATE COMES TO AN END AND DONT USE THE CREDIT CARD AS AN EXCUSE TO RUN UP FRESH DEBT.

This option could be cheaper than a personal loan (and maybe more flexible to) ie you can over pay on a credit card to reduce the debt ASAP.

The key thing you need to do is live within your means on your good salary, pay off debts ASAP and build up a cash cushion of 3 months salary for emergencies. So if your current employer went bankrupt you have financial breathing space due to your cash cushion.

Best thing in life are free.

youngmoney_2

Interesting thats a good idea I could do a bit of a card shuffle with that as well I suppose if the need be.

So in terms of the store card, assuming that my application for the credit card was accepted would I just ring Jessops and pay off the outstanding on the card?

Bestthingsinlifearefree

Yes. Or on the credit card application form some times they get you to put the store card number / details etc and they transfer it for you.

Bestthingsinlifearefree

Yes. Or on the credit card application form some times they get you to put the store card number / details etc and they transfer it for you.

If you go on to the credit card sections people will advise you of best deals etc but please dont fall into the trap of transfering the debt onto a credit card and then running up MORE debt as you suddenly have a credit card in your pocket.

Be very, aware of this danger.

youngmoney_2

Brilliant thanks for that much appreciated! That takes a huge weight off my mind. Now...all I have to do is get accepted! Thanks again!

youngmoney_2

Don't worry I am lucky in the respect that my tender young age has received a battering with stupid money problems. I am now much the wiser for it all and will NOT be making the same mistakes again!

Xbigman

If you don't have to pay until Jan then that 2k is effectively at 0%, so I wouldn't do anything about it until early december. Pay off other debts first.
Given the time available to you I would get one of the 0% on purchases cards and use it for all your living expences (IE food - petrol) and spending and use the money that free's up to clear debts, then start clearing that card as it starts to run out. If you can't clear it in time then a bt from another 0% card would be the way forward.
Regards



X

youngmoney_2

Another good idea. I'm so glad I found this site. I'm 18 so I guess I will be able to spot most of the potholes from now on! Thanks guys.