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So... we have made a right mess of things financially...

(4 Posts)
vintageviolets Thu 10-Jan-13 07:36:34

Hi I have just transferred £1700 to Santander credit card,

0% for 17 months.

I paid about £34 transfer fee (added to your bill)

CogitoErgoSometimes Thu 10-Jan-13 07:28:36

The only way to deal successfully with debt is to be quite methodical about it.
1. Find the cheapest way you can of borrowing the money. Overdrafts and Credit Cards tend to be a lot more expensive APR% than loans.
2. 0% credit cards are cheaper short term but there is a transfer fee which you must factor in and the rate is usually for a fixed period only. So they need careful management - ideally you should have paid off the balance in full before the 0% expires
3. Cut your living costs ruthlessly and create the most spare money you possibly can each month to pay down the debt. Has to be more than the minimum payment
4. VERY IMPORTANT... You must not overspend in any way once you embark on this route. DO NOT use your CC, take out loans or use your overdraft once you are paying off the debt, especially if you've converted it to a loan or 0% card. That is how people get in a lot of trouble

Unless you have a very good reason for doing so I would caution against handing your debt over to your partner or vice versa. Finally, if you struggle with any of this, if you can't manage more than the minimum payments etc, consider booking an appointment with one of the free debt advisory services - CAB, CCCS or National Debtline.

BlissfullyIgnorant Wed 09-Jan-13 23:33:51

Check out moneysavingexpert.com which has loads of tips for people in your situation. The problem with debt consolidation is the length of time AND the extra interest you end up paying. There are tricks you can do with balance transfers on to 0% cards but that takes a lot of time and effort - worth it if you can do it, though. They also have a lot of advice on budgeting and saving on purchases. Sign up for their newsletter.

katykuns Wed 09-Jan-13 23:29:13

I have a credit card with 1 grand debt on. Partner has a credit card with 1.5k debt on. Partner also is in his overdraft by around £800. He is being charged £20 pm for being in his overdraft.

I earn around 14k a year. We are trying to budget as best as we can to cover it. I am looking into getting a balance transfer for my debt to partner's card. Is there anything we can do to get over this quicker? Is it likely with all this going on that we could get a loan to cover it, then pay off a set amount every month?

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