How to pay off credit card debt of 10k

cymro · 15 September 2018 at 8:16AM

I have one cc which is at its 10k limit and would like to explore a way to pay it off as quickly as possible as the interest rate is very high and I cannot afford to pay it off in one go.

Any suggestions please?

Nebulous2 · 15 September 2018 at 8:24AM

Pay more per month, cut back on other things and throw money at your credit card. Get it well down below the limit.

Can you get other cards - to do a transfer?

Try an eligibility checker, with a view to shifting as much as you can to 0%.

enthusiasticsaver · 15 September 2018 at 11:52AM

How much can you afford to pay monthly and what is the interest rate?

If your credit record is ok can you get a 0% card. As the card balance is quite high you may have some difficulty on getting one though and the balance transfer fee will be quite a lot. How did the balance get so high?

I would do a budget and make sure you are not overspending every month. Once the balance is lower you may find it easier to get some 0% deals.

Cropstar · 15 September 2018 at 4:45PM

Like others have said, cut your spending so you can increase the rate at which you pay back.

If you can, transfer all or part of the debt on a balance transfer deal. Then pay the minimum on it and whatever you can afford onto the one charging interest.

I have about £9k of credit card debt myself, but all on 0%. Paying well over the minimum each month and pay it out early in the month so I don't have the cash sitting around to spend.

OliverJames85 · 15 September 2018 at 4:50PM

What is the interest rate on the card? - if you cannot get a balance transfer card you could speak to your bank and look into possibilities of a loan, you should be able to borrow £10K at <5%

Willing2Learn · 15 September 2018 at 4:56PM

OliverJames85 wrote: »

What is the interest rate on the card? - if you cannot get a balance transfer card you could speak to your bank and look into possibilities of a loan, you should be able to borrow £10K at <5%

I am completely against consolidating the debt with a loan. What usually happens is that an individual gets their loan and continues to spend more than their monthly budget on their card. That leads to a doubling of the debt and double the trouble.

It would be far more prudent to work out a monthly budget and only spend on things that have been budgeted for. That way, the credit card debt can be reduced. Then the OP may become eligible for a BT promotion card.

OliverJames85 · 15 September 2018 at 5:20PM

I agree it may not be ideal, but if the OP has an interest rate of >20%...suddenly a 4% interest rate makes a lot more sense loan or not - obviously he would need to then cut down on his monthly spend as well to avoid doubling up the debt

Dobbibill · 15 September 2018 at 6:28PM

Hi OP,

Have you posted a SOA on the DFW board - that would be a good place to start. They will be able to give you tailored suggestions based on the results of your SOA.
Without more information we don't know whether a BT offer is plausible or not.

The other thing to do is to understand how & why you have the debt - that way you can prevent it happening again in the future.

Brace yourself though, it's not going to disappear overnight, the same way it didn't arrive overnight

All the best.

cymro · 15 September 2018 at 8:05PM

Thank you all for the helpful responses. The card is a Barclaycard and I 'never' use it - the 10k debt was accrued by my partner who no longer has access to the card. I have no other debt - owe nobody a penny and my mortgage is paid off and have no savings.

redpete · 15 September 2018 at 11:15PM

cymro wrote: »

Thank you all for the helpful responses. The card is a Barclaycard and I 'never' use it - the 10k debt was accrued by my partner who no longer has access to the card. I have no other debt - owe nobody a penny and my mortgage is paid off and have no savings.

Are you earning, can you earn more?

How much do you spend, can you spend less?

What's your credit history like, could you get cheaper credit? (Credit transfer to another card, cheaper lian, cut up card so you don't spend on it / them...)

Joe07932 · 15 September 2018 at 11:21PM

Speak to the lender and tell them you cannot afford to pay it and want to look at closing you account.

I've haggled with my credit card providers in the past, Halifax once dropped 10%.

But you must stress the interest rate is not affordable and needs lowering to an affordable amount.

Speak to nationaldebtline too, they'll give you the haggling tools and letters to use.

How to pay off credit card debt of 10k

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