Credit Card novice, consolidating debt

justarran · 17 August 2018 at 9:51PM

Hiya,

Bit of a novice when it comes to Credit cards and debt, but I find myself at the limit of my overdraft on a couple of current accounts and with a smallish Credit Card (2k) maxed out. The only good thing to say about it is it was caused by some bad luck and everything happening at once rather than dreadful money management... but anyway, I am where I am.

I'd like to get rid of the overdrafts and the current CC and consolidate it into one place, and also add a bit of Credit so I have some emergency money should I need it. Does that mean I need a new money transfer Credit Card. I can the put the money in the relevant accounts to get out of the overdrafts, and make a payment of the full amount on the old credit card.

Is that the best way to deal with this you.think?

boo_star · 17 August 2018 at 10:31PM

It's a way out of it but not necessarily the best. You need to address your spending habits first.

But assuming you do that a money transfer card would be the way to go but with a maxed out overdraft and credit card your chances of being accepted are slim.

Craig1981 · 18 August 2018 at 6:19AM

check your eligibility on moneyclub, noddle, clearscore etc for a money transfer card, it will tell you likelihood of being accepted before applying

yes, money transfer is what you are looking for, if accepted.

but, once cleared, you need to ensure you cancel the other accounts, as its far too easy to fall into double the debt you already in

chattychappy · 18 August 2018 at 8:48AM

justarran wrote: »

I'd like to get rid of the overdrafts and the current CC and consolidate it into one place, and also add a bit of Credit so I have some emergency money should I need it.

If you transferred the debt to a new card, then your overdraft/old card would be available for "emergencies".

You did say that your situation was due to some bad luck, implying it was a one-off. Do be honest with yourself and work through the numbers. Are you living within your means, even taking account of "bad luck" events? Is there a risk that having more credit available will cause you spend more?

A 0% MT card (if you can get one) is what you need to cut the interest costs.

Dobbibill · 18 August 2018 at 9:16AM

moving the debt to a MT card will give you some time without incurring interest - remember to factor in the fee then pay off whatever you can to clear it ASAP. If you didn't get a limit large enough to move all the debt, pay off as much as possible from highest costing debt first. Remember you still have to make at least the minimum payment on a CC.

Credit Card novice, consolidating debt

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