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  • FIRST POST
    • creditcardchaos
    • By creditcardchaos 12th Oct 19, 4:06 PM
    • 6Posts
    • 7Thanks
    creditcardchaos
    Credit Card Debt Help/Advice
    • #1
    • 12th Oct 19, 4:06 PM
    Credit Card Debt Help/Advice 12th Oct 19 at 4:06 PM
    Hi All

    So I previously had about £18k of debt, got it down to £13k then due to mat leave itís back up to £16.5k 😭

    All of it is on credit cards which have now come to the end of the 0% deal and Iím not eligible for any further 0% balance transfer cards. I think this is due to me using a lot of my overall credit limit.

    Iím looking for advice on which debt to tackle first and also how to move the debt around a bit - I have space and offers on current cards that I could switch balances around a little for a 0% offer.

    Iíll detail the cards in another post.

    Thank you x
Page 1
    • zx81
    • By zx81 12th Oct 19, 4:16 PM
    • 23,838 Posts
    • 26,507 Thanks
    zx81
    • #2
    • 12th Oct 19, 4:16 PM
    • #2
    • 12th Oct 19, 4:16 PM
    If you have 0% offers, then use them, transferring balances from the highest rate cards.

    Then pay as much as you can to the remaining highest rate balances, with minimums plus £1 on the rest.
    • creditcardchaos
    • By creditcardchaos 12th Oct 19, 4:24 PM
    • 6 Posts
    • 7 Thanks
    creditcardchaos
    • #3
    • 12th Oct 19, 4:24 PM
    • #3
    • 12th Oct 19, 4:24 PM
    Tesco £850 2.24% £19.04
    MBNA £1,650 2.07% £25.63
    BOS £3,775 2.20% £78.66
    BC £2,456.78 1.47% £36.20
    £1,443.22 2.09% £30.19
    HSBC £3,738.02 1.67% £62.46
    £672.38 0.16% £1.06
    £2,058 0%
    • creditcardchaos
    • By creditcardchaos 12th Oct 19, 4:28 PM
    • 6 Posts
    • 7 Thanks
    creditcardchaos
    • #4
    • 12th Oct 19, 4:28 PM
    • #4
    • 12th Oct 19, 4:28 PM
    I could balance transfer £600/700 to the HSBC, £275 to BOS and I also have another card with a zero balance and £1,000 limit I could also transfer to. So all in all I could move around £2,000 to have that at 0% - I’m just not sure what to move where.

    I’m not sure whether to concentrate on the BOS card since the interest is more each month or get rid of the Tesco card first since the rate is higher?

    I think if I can get rid of the Tesco one they may offer a 0% transfer to get a balance on it again.
    • zx81
    • By zx81 12th Oct 19, 4:31 PM
    • 23,838 Posts
    • 26,507 Thanks
    zx81
    • #5
    • 12th Oct 19, 4:31 PM
    • #5
    • 12th Oct 19, 4:31 PM
    Always focus on the highest rate.

    That's what saves you the most money and repays the debt fastest.
    • creditcardchaos
    • By creditcardchaos 12th Oct 19, 5:24 PM
    • 6 Posts
    • 7 Thanks
    creditcardchaos
    • #6
    • 12th Oct 19, 5:24 PM
    • #6
    • 12th Oct 19, 5:24 PM
    So if I concentrate biggest payments towards Tesco the next couple of months and transfer £6/700 from BOS to HSBC? Should I also transfer to the empty card from BOS or am I better to leave that empty in the hope that I am offered a new balance transfer card from elsewhere when applying?

    Should the Tesco card be closed or left open with zero balance so I’m essentially use less of my overall credit as that seems to be the problem in me not being accepted for any other cards.
    • Willing2Learn
    • By Willing2Learn 12th Oct 19, 8:22 PM
    • 4,414 Posts
    • 3,958 Thanks
    Willing2Learn
    • #7
    • 12th Oct 19, 8:22 PM
    • #7
    • 12th Oct 19, 8:22 PM
    I just wanted to mention the Dave Ramsey (DR) method of snowballing debts. The MSE method to 'always focus on the highest rates' is best (as far as I am concerned). But you should consider the DR method as a viable alternative, as it might work best for you.

    The DR method vs MSE method is discussed in the link below:
    https://www.thebalance.com/debt-snowball-vs-debt-stacking-453633


    You can even compare how the two methods work, using the snowball calculator linked below:
    (it is slow to load the page, but is worth the wait!)
    http://www.whatsthecost.com/snowball.aspx


    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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