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  • FIRST POST
    • cymro
    • By cymro 15th Sep 18, 8:16 AM
    • 80Posts
    • 25Thanks
    cymro
    How to pay off credit card debt of 10k
    • #1
    • 15th Sep 18, 8:16 AM
    How to pay off credit card debt of 10k 15th Sep 18 at 8:16 AM
    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?
Page 1
    • Nebulous2
    • By Nebulous2 15th Sep 18, 8:24 AM
    • 2,095 Posts
    • 1,287 Thanks
    Nebulous2
    • #2
    • 15th Sep 18, 8:24 AM
    • #2
    • 15th Sep 18, 8:24 AM
    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
    • By enthusiasticsaver 15th Sep 18, 11:52 AM
    • 7,280 Posts
    • 15,959 Thanks
    enthusiasticsaver
    • #3
    • 15th Sep 18, 11:52 AM
    • #3
    • 15th Sep 18, 11:52 AM
    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.
    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
    • Cropstar
    • By Cropstar 15th Sep 18, 4:45 PM
    • 23 Posts
    • 4 Thanks
    Cropstar
    • #4
    • 15th Sep 18, 4:45 PM
    • #4
    • 15th Sep 18, 4:45 PM
    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
    • By OliverJames85 15th Sep 18, 4:50 PM
    • 9 Posts
    • 3 Thanks
    OliverJames85
    • #5
    • 15th Sep 18, 4:50 PM
    • #5
    • 15th Sep 18, 4:50 PM
    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
    • By Willing2Learn 15th Sep 18, 4:56 PM
    • 1,747 Posts
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    Willing2Learn
    • #6
    • 15th Sep 18, 4:56 PM
    • #6
    • 15th Sep 18, 4:56 PM
    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%
    Originally posted by OliverJames85
    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.
    Last edited by Willing2Learn; 15-09-2018 at 5:05 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • OliverJames85
    • By OliverJames85 15th Sep 18, 5:20 PM
    • 9 Posts
    • 3 Thanks
    OliverJames85
    • #7
    • 15th Sep 18, 5:20 PM
    • #7
    • 15th Sep 18, 5:20 PM
    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
    • By Dobbibill 15th Sep 18, 6:28 PM
    • 3,396 Posts
    • 4,372 Thanks
    Dobbibill
    • #8
    • 15th Sep 18, 6:28 PM
    • #8
    • 15th Sep 18, 6:28 PM
    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.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • cymro
    • By cymro 15th Sep 18, 8:05 PM
    • 80 Posts
    • 25 Thanks
    cymro
    • #9
    • 15th Sep 18, 8:05 PM
    • #9
    • 15th Sep 18, 8:05 PM
    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.
    Last edited by cymro; 15-09-2018 at 8:08 PM.
    • redpete
    • By redpete 15th Sep 18, 11:15 PM
    • 4,290 Posts
    • 3,813 Thanks
    redpete
    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.
    Originally posted by cymro
    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...)
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • Joe07932
    • By Joe07932 15th Sep 18, 11:21 PM
    • 7 Posts
    • 3 Thanks
    Joe07932
    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.
    • tastyhog
    • By tastyhog 15th Sep 18, 11:48 PM
    • 526 Posts
    • 935 Thanks
    tastyhog
    if you have no mortgage and presumably no large living expenses other than just frittering away money, then where's the issue? surely the pair of you could easily chuck 5 or 10k at it in a year and clear it in no time
    • YorkshireBoy
    • By YorkshireBoy 15th Sep 18, 11:54 PM
    • 30,310 Posts
    • 18,222 Thanks
    YorkshireBoy
    Speak to the lender and tell them you cannot afford to pay it and want to look at closing you account.
    Originally posted by Joe07932
    How can you close an account with a 10K balance (other than by repaying the 10K)?
    I've haggled with my credit card providers in the past, Halifax once dropped 10%.
    10% won't make much difference. Or did you mean 10 percentage points?...ie halving a 19.9% rate to 9.9%?
    But you must stress the interest rate is not affordable and needs lowering to an affordable amount.
    Why would they do that? They said they couldn't repay the whole 10K now, not that they were finding the monthly payments difficult to meet.
    Speak to nationaldebtline too, they'll give you the haggling tools and letters to use.
    Totally over the top! Did you read the OP?
    • Dobbibill
    • By Dobbibill 16th Sep 18, 7:18 AM
    • 3,396 Posts
    • 4,372 Thanks
    Dobbibill
    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.
    Originally posted by cymro
    Without any other debt, assuming you have a reasonable income, have you looked at eligibility for a BT?

    Try the checker to give you an idea https://www.moneysavingexpert.com/eligibility/credit-cards/
    It doesn't pay it off but it does make it 0% so your payments will go off the capital.

    Remember to do the maths if you are able to get one - account for the fee and don't transfer more than you need to.

    Do you have a plan in place of how much you can pay off each month?
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • Lotak
    • By Lotak 18th Sep 18, 1:08 PM
    • 80 Posts
    • 56 Thanks
    Lotak
    As Red pete said ... you have 3 options
    Earn more to pay more
    Spend less to pay more
    Balance Transfer to a cheaper rate.

    Best option is BT to a 0% rate with 0 fee, but best deals is a little over 2 years, around 400 / month if you can afford that. Can go longer (around 3 years), which would make a little under 300 / month, but that comes with a typical 3% fee. Biggest drawback with BT is you may not get the limit you need.
    Current Debt (excluding mortgage) - 13.8k
    Reducing 600 / month.
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