Bit of debt.. unsure on action to take
Discussion
Other than I know I need to pay it off.
Been a bit of an idiot really, I don't need reminding of that nor am I expecting sympathy. I am just looking for a bit of advice. I have mounted up a debt over two credit cards, circa £4300, I don't need to go into details what I have spent it on (unfortunately not hookers or booze)and I have also dropped into my overdraft this month, which I have done a few times before but never as much as this, due to emergency repair work needed on my car.
My car I bought outright a few months ago for £3k (bought cash) probably wasn't the wisest idea, so I have myself to blame however equally I don't really want to get rid of it, it's the very last resort. Between both my cards I am paying £120 a month, less than ideal as thats being shared between two of them + the interest before the debt starts to come off.
I was thinking of applying for a £5000 loan, to consolidate my 2 cards and get me out of my overdraft. From initially looking my repayments over 5 years would be roughly the same as what I am paying out now, however this would decrease the debt as a whole. I get a bonus yearly so I can pay a chunk off each year and possibly reduce my repayment scheduled by at least a year.
After doing a budget plan with my current monthly earnings, rent, phone bill, dentist plan, car insurance and a bit for savings it leaves me with enough to pay the monthly fee and still have a bit to keep my self sane/to save.
Would this be a sensible option? Bearing in mind I have never missed a repayment on either credit card.
Been a bit of an idiot really, I don't need reminding of that nor am I expecting sympathy. I am just looking for a bit of advice. I have mounted up a debt over two credit cards, circa £4300, I don't need to go into details what I have spent it on (unfortunately not hookers or booze)and I have also dropped into my overdraft this month, which I have done a few times before but never as much as this, due to emergency repair work needed on my car.
My car I bought outright a few months ago for £3k (bought cash) probably wasn't the wisest idea, so I have myself to blame however equally I don't really want to get rid of it, it's the very last resort. Between both my cards I am paying £120 a month, less than ideal as thats being shared between two of them + the interest before the debt starts to come off.
I was thinking of applying for a £5000 loan, to consolidate my 2 cards and get me out of my overdraft. From initially looking my repayments over 5 years would be roughly the same as what I am paying out now, however this would decrease the debt as a whole. I get a bonus yearly so I can pay a chunk off each year and possibly reduce my repayment scheduled by at least a year.
After doing a budget plan with my current monthly earnings, rent, phone bill, dentist plan, car insurance and a bit for savings it leaves me with enough to pay the monthly fee and still have a bit to keep my self sane/to save.
Would this be a sensible option? Bearing in mind I have never missed a repayment on either credit card.
Not sure if this is a viable option for you, but if you have the self control, open a new credit card this allows 0% on balance transfers, and transfer both of the credit cards debt into one of those, usually they give you 1-2 years of interest free debt.
The key is to not spend any more on credit cards though so you would need to close the original credit cards. You at least have no interest to pay off for a while then. Then just pay it off as regularly as possible including your bonuses.
The key is to not spend any more on credit cards though so you would need to close the original credit cards. You at least have no interest to pay off for a while then. Then just pay it off as regularly as possible including your bonuses.
Try and get a loan through Zopa or similar that let you pay it off as soon as you can with no front loaded interest.
How much are your outgoings? And I mean strict outgoings - the absolute essentials.
I'd live like a monk, pushbike everywhere I could and pay every single penny spare off my debt until it's gone.
How much are your outgoings? And I mean strict outgoings - the absolute essentials.
I'd live like a monk, pushbike everywhere I could and pay every single penny spare off my debt until it's gone.
[quote=Esseesse]How much do you earn a month, and how much is rent?
Eat beans etc from Aldi. Buy nothing. Phone on GiffGaff £10/mo or get rid. Never pay insurance monthly, pay in one lump. Cancel dentist plan and find an NHS dentist.
Even on a low wage you surely can pay off £500+/mo?[/quo
I see where your coming from, but that's 8 months plus he d have to "eat beans" and if hes in his overdraft now, hes defo not got the cash to stump up for his insurance in one hit.
Are you a powerfully built director??
Eat beans etc from Aldi. Buy nothing. Phone on GiffGaff £10/mo or get rid. Never pay insurance monthly, pay in one lump. Cancel dentist plan and find an NHS dentist.
Even on a low wage you surely can pay off £500+/mo?[/quo
I see where your coming from, but that's 8 months plus he d have to "eat beans" and if hes in his overdraft now, hes defo not got the cash to stump up for his insurance in one hit.
Are you a powerfully built director??
cossy400 said:
Esseesse said:
How much do you earn a month, and how much is rent?
Eat beans etc from Aldi. Buy nothing. Phone on GiffGaff £10/mo or get rid. Never pay insurance monthly, pay in one lump. Cancel dentist plan and find an NHS dentist.
Even on a low wage you surely can pay off £500+/mo?
I see where your coming from, but that's 8 months plus he d have to "eat beans" and if hes in his overdraft now, hes defo not got the cash to stump up for his insurance in one hit. Eat beans etc from Aldi. Buy nothing. Phone on GiffGaff £10/mo or get rid. Never pay insurance monthly, pay in one lump. Cancel dentist plan and find an NHS dentist.
Even on a low wage you surely can pay off £500+/mo?
Are you a powerfully built director??
Honestly, is that a worrying amount of debt?
0% card, f
k all the debt onto that, pay it off best you can and never use the card.
Or, loan, and clear it all off. Not as good but if you can't get credit it's the next best option.
I really wouldn't think about selling my car with such a low level, serviceable debt attached to me. Really no need...good luck!
0% card, f
k all the debt onto that, pay it off best you can and never use the card.Or, loan, and clear it all off. Not as good but if you can't get credit it's the next best option.
I really wouldn't think about selling my car with such a low level, serviceable debt attached to me. Really no need...good luck!
£4k??
Your right it is a bit. My advice would be to take out a £20k loan, clear the debt sell your car and buy a v8, then spend the rest on booze and hookers as you should have done in the first place. Then come on here and ask for advice about a half decent debt problem that has a good story to go with it as well.
Your right it is a bit. My advice would be to take out a £20k loan, clear the debt sell your car and buy a v8, then spend the rest on booze and hookers as you should have done in the first place. Then come on here and ask for advice about a half decent debt problem that has a good story to go with it as well.
Thanks MajorProblem, went through zopa, got a really good rate. It works out cheaper than the two credit cards and with works bonus every year I'll cut down on the time it takes to repay.
I looked into getting a balance transfer card again, but they wouldn't of had a high enough limit.
Sadly, I'm not well off enough to consider 4k "not a lot of debt", if I were, I wouldn't have that debt in the first place, thanks though!
I looked into getting a balance transfer card again, but they wouldn't of had a high enough limit.
Sadly, I'm not well off enough to consider 4k "not a lot of debt", if I were, I wouldn't have that debt in the first place, thanks though!
A couple of points:
£4k isn't a huge amount of debt when £3k of it went on an asset you could presumable sell to clear a large percentage if you needed to. You've realised you want/need to clear it so, as long as it doesn't continue growing, it's not something to worry about.
Get a 0% card if it makes financial sense. Even if it will only replace part of the debt, it will be interest free, so work out whether the cost of the balance transfer fee is worth it, but my guess is it will be.
Cut up the cards and focus on clearing as much as you can. And by that, I mean a direct debit to clear as much as you can commit to, but also transfer every spare penny to can each month. Even if it's just a fiver in your account the day before payday, transfer it off the credit card with the highest interest.
It will go.
£4k isn't a huge amount of debt when £3k of it went on an asset you could presumable sell to clear a large percentage if you needed to. You've realised you want/need to clear it so, as long as it doesn't continue growing, it's not something to worry about.
Get a 0% card if it makes financial sense. Even if it will only replace part of the debt, it will be interest free, so work out whether the cost of the balance transfer fee is worth it, but my guess is it will be.
Cut up the cards and focus on clearing as much as you can. And by that, I mean a direct debit to clear as much as you can commit to, but also transfer every spare penny to can each month. Even if it's just a fiver in your account the day before payday, transfer it off the credit card with the highest interest.
It will go.
Ive just decided to do this & see if was worth doing as was paying plenty of interest so filled out couple of online forms & got credit card £2250 interest free for 24 months , cost £65 transfer fee which is what I was paying in interest alone. min payment is £25 now but still going to pay at least £65.
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