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  • FIRST POST
    • Overmyhead
    • By Overmyhead 28th Jul 18, 4:38 PM
    • 34Posts
    • 19Thanks
    Overmyhead
    Credit Card Debt Query - Please help x
    • #1
    • 28th Jul 18, 4:38 PM
    Credit Card Debt Query - Please help x 28th Jul 18 at 4:38 PM
    I finally took stock in November last year and my figures looked like this ...
    Overdraft - £2,990 (charging £4 per day)
    Card 1 - £3,599.10 (25.95%)
    Card 2 - £2,447.75 - broken down in to -
    £2,095.80 (17.18%)
    £331.95 (24.60%)
    Card 3 - £4019.99 - broken down in to -
    £3,561.23 (17.18%)
    £550.77 (24.60%)
    Card 4 - £6,775 (0%)

    TOTAL - £19,831.84

    I have managed to get those numbers down now but Iím still not eligible for any 0% balance transfer cards. I have some room to move between cards and Iím looking for advice on which balances I should move first to save the most - I canít quite get my head around working it out. Any advice would be appreciated. New balances and offers are as follows ...

    Overdraft - £0
    Card 1 - £2,450 (26.20% pa) - £4,200 limit - Bank
    Card 2 - £2,100 (17.43% pa) - £2,500 limit - Barclaycard
    Card 3 - £3,700 (17.43 % pa) - £4,050 limit - Barclaycard
    Card 4 - £5,875 (0% pa) - £7,000 limit - HSBC

    = £14,125

    Card 1 is offering 6 months @ 4.9% pa for a balance transfer and Card 4 is offering 18 months at 0%

    Which balances should I be transferring between cards to make the most of the offers I can at the moment please? Would hope if I cleared one BC card they might also offer me a 0% transfer from elsewhere.

    I would also mention that I have been paying as much as I can to each card recently but Iím due to go on maternity leave so money is going to be tight. The fewer payments over the next 9 months the better.

    Thanks in advance x
Page 1
    • Willing2Learn
    • By Willing2Learn 28th Jul 18, 6:03 PM
    • 858 Posts
    • 656 Thanks
    Willing2Learn
    • #2
    • 28th Jul 18, 6:03 PM
    • #2
    • 28th Jul 18, 6:03 PM
    What credit limit is card 4 offering you @ 0% for 18 months?

    I personally would not accept the card 1 offer for six months as then you would be paying 26.2% once the six months expires. This would coincide with baby time and money will be at it's tightest.


    I would focus on paying the highest interest card debt down asap, putting the max amount of money toward clearing it. The other cards I would pay the minimum monthly amount until card 1 is down to £0 then I would focus on paying the next highest interest. A snowball method of paying down the debt.

    I hope this helps.

    And good luck with the baby too!!!!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Overmyhead
    • By Overmyhead 28th Jul 18, 6:16 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    • #3
    • 28th Jul 18, 6:16 PM
    • #3
    • 28th Jul 18, 6:16 PM
    Thank you for your response - card 4 limit is £7k so there!!!8217;s £1,100 free I could move from card 1 to there? It will put the monthly payment up but I don!!!8217;t think by too much. I think the now it!!!8217;s around £150 but I pay £175 to it every payday.
    • Overmyhead
    • By Overmyhead 28th Jul 18, 6:18 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    • #4
    • 28th Jul 18, 6:18 PM
    • #4
    • 28th Jul 18, 6:18 PM
    Oops sorry - anywhere i have used an apostrophe there seems to be funny symbols and numbers?!

    Thank you for the good luck too - I feel I!!!8217;ll need it, this will be our second x
    • Willing2Learn
    • By Willing2Learn 28th Jul 18, 6:30 PM
    • 858 Posts
    • 656 Thanks
    Willing2Learn
    • #5
    • 28th Jul 18, 6:30 PM
    • #5
    • 28th Jul 18, 6:30 PM
    Thank you for your response - card 4 limit is £7k so there's £1,100 free I could move from card 1 to there? It will put the monthly payment up but I don't think by too much. I think the now it's around £150 but I pay £175 to it every payday.
    Originally posted by Overmyhead
    If it was me, I would only transfer an amount from card 1 to card 4 that keeps me within 90% of the card 4 limit. Then just pay minimum amount to cards 2, 3 and 4 and focus on paying every available penny to card 1 as it has the highest rate. 'Cos I like snowballs!!!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Overmyhead
    • By Overmyhead 28th Jul 18, 6:55 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    • #6
    • 28th Jul 18, 6:55 PM
    • #6
    • 28th Jul 18, 6:55 PM
    So snowball calculator estimates it!!!8217;ll take 31 months to pay off the debt at the rate I am now. That may need to be extended if I have to pay less over mat leave if I!!!8217;m struggling. Hopefully that wont be the case x
    • Overmyhead
    • By Overmyhead 1st Aug 18, 9:06 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    • #7
    • 1st Aug 18, 9:06 PM
    • #7
    • 1st Aug 18, 9:06 PM
    So happy!! Randomly decided to check my eligibility for a new card again and there was one at 95% - 0% for 32 months. Applied now and have been accepted for 0% for 12 months with a £1,900 credit limit!!

    New figures look like this -

    Card 1 - £50 (26.20% pa) - £4,200 limit - Bank
    Card 2 - £1,850 (17.43% pa) - £2,500 limit - Barclaycard
    Card 3 - £3,700 (17.43 % pa) - £4,050 limit - Barclaycard
    Card 4 - £6,875 (0% pa) - £7,000 limit - HSBC
    Card 5 - £1,650 (0% pa) - £1,900 limit - MBNA

    Hopefully that will save quite a bit on interest. I plan to cut back this month and pay the last £50 off that card to be able to close it before payday. I will then tackle card 2 next just to get that down and closed? Leaving the two 0% to last.
    • Overmyhead
    • By Overmyhead 1st Aug 18, 9:15 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    • #8
    • 1st Aug 18, 9:15 PM
    • #8
    • 1st Aug 18, 9:15 PM
    Snowball estimate has gone for £1,313 in interest to £766 by the time debt is paid off! Happy with that
    • Overmyhead
    • By Overmyhead 1st Aug 18, 9:36 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    • #9
    • 1st Aug 18, 9:36 PM
    • #9
    • 1st Aug 18, 9:36 PM
    Another update is also I forgot to mention I have managed to save a little as well so have £2,500 in savings at the moment.

    I know everyone is going to advise using that to pay the debt and save on some interest but given im going to be on maternity leave in 2 months I thought it would be better to have something rather than resort to using cards. My wage will more than half - SMP is £600 per month. That wont cover my outgoings and allow me to pay £500 to cards as Im doing now so savings are a back up in case I can!!!8217;t meet any payments at some point so there arent any marks on my credit file were that to happen.
    • enthusiasticsaver
    • By enthusiasticsaver 2nd Aug 18, 12:38 PM
    • 6,883 Posts
    • 14,836 Thanks
    enthusiasticsaver
    Well done on getting rid of most of that card 1 at 26%. I agree with you keeping savings back for maternity leave. Close the cards as you pay them off to stop you being tempted to spend on them again. I would focus on card 2 then card 3. When does the 0% deal expire on card 4?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Willing2Learn
    • By Willing2Learn 2nd Aug 18, 12:42 PM
    • 858 Posts
    • 656 Thanks
    Willing2Learn
    Snowball estimate has gone for £1,313 in interest to £766 by the time debt is paid off! Happy with that
    Originally posted by Overmyhead
    That is so cool. A saving of £550
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Overmyhead
    • By Overmyhead 2nd Aug 18, 3:48 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    Thank you!

    Im not positive about card 4 - I cant see where it tells me in my statement anywhere. Itís been bits and pieces transferred from other cards for 0% deal so each part of the balance will be different dates, Iím just not sure when the first one is or how much it will be x
    • Overmyhead
    • By Overmyhead 11th Aug 18, 3:06 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    Clearing the balance on card 1 they!!!8217;ve offered me 0% for 15 months so I can move card 2 and some of 3 to there and most of my balance will now be 0%!! Yay!! Will update figures once all done - there!!!8217;ll be transfer fees etc to add on x
    • Overmyhead
    • By Overmyhead 11th Aug 18, 3:30 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    Did have a disaster with nursery furniture I!!!8217;d ordered and ended up having to pay more for another set so I had to dip in to my maternity savings and I!!!8217;m pretty poor now until payday at the end of the month. Hopefully have a better month next month!!
    • D_M_E
    • By D_M_E 11th Aug 18, 4:18 PM
    • 1,699 Posts
    • 63,843 Thanks
    D_M_E
    If the overdraft is costing you £4 a day then that's expensive and I would consider paying off a good chunk or all of it with the 0% card if it's also a money transfer card.
    • Overmyhead
    • By Overmyhead 12th Aug 18, 9:01 PM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    My new figures are below those - I manage to pay off the overdraft.
    • Emmel
    • By Emmel 13th Aug 18, 1:16 AM
    • 23 Posts
    • 46 Thanks
    Emmel
    Well done, you have done great with your repayments. One less thing on your mind when baby arrives
    • Willing2Learn
    • By Willing2Learn 13th Aug 18, 11:17 AM
    • 858 Posts
    • 656 Thanks
    Willing2Learn
    Nice one overmyhead!!! That means more money for baby...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • D_M_E
    • By D_M_E 13th Aug 18, 11:51 AM
    • 1,699 Posts
    • 63,843 Thanks
    D_M_E
    Well done on the overdraft - I would now pay min payment on eaxch of the 0% balances and pay every spare penny to card 3.

    When that's cleared put everything spare into clearing the card with the shortest 0% deal then on to the next.

    Have you put in a claim for Child Benefit and have you looked at http://www.entitledto.co.uk to see if there's anything else you may be able to claim whist on maternity leave?
    • Overmyhead
    • By Overmyhead 18th Aug 18, 7:32 AM
    • 34 Posts
    • 19 Thanks
    Overmyhead
    Update...

    Card 1 - £3,900 (0% pa 15 months) - £4,200 limit - Bank
    Card 2 - £0 (17.43% pa) - £2,500 limit - Barclaycard
    Card 3 - £1,700(17.43 % pa) - £4,050 limit - Barclaycard
    Card 4 - £6,700 (0% pa) - £7,000 limit - HSBC
    Card 5 - £1,650 (0% pa 12 months) - £1,900 limit - MBNA
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