Credit Card Debt

[Guardsman18]

I'm after some advice from financially savvy mners please.

I have approximately £2000 debt on a very high interest rate (30.4%) I pay £100/month (sometimes more if I have it) and haven't used it for ages. Balance is coming down but very slowly.

I have just been given £2000 as a gift. As you can imagine, I'm thinking holiday, new clothes etc.

Would it be better financially to just clear this debt and although I won't have a nice lump sum, I will have more each month from my quite low salary?

I know what I'm asking may seem obvious to many but am in this mess because I'm obviously not very good with money!

Thanks

Are you eligible for any 0% balance transfer credit cards?

Sorry to say but yes you are much better to pay off the debt. That £2,000 debt is costing you roughly £600 a year in interest.

Absolutely you should use the 2000 to clear the debt. I can understand that a holiday and new things is tempting but think what a weight off your mind clearing it would be. Also that extra 100 per month will make a tea difference to you life. More than a holiday will. If you save the 100 you'll soon enough build up the gift amount.

I have tried to get 0% cards but failed miserably.

Thank you so much for your replies. I am going to do as you have advised. I suspected as much but just wanted to really know that I wasn't being foolish. By next week (Wednesday) credit cards will be gone.

Phew. I feel lighter already!

Good choice!

That's great, well done! I know it's a shame not to have the lump sum but being out of debt will give you freedom.

Try and save the £100 you were paying towards your credit cards and you will soon build up some cash.

I’m afraid being sensible is the way to go...

Honestly you will feel like a weight has lifted once you've paid off the credit card.

I would pay off the credit card to get the worry off my shoulders then with the money you would spend on paying each month I would put it to one side and go and book a holiday when you have enough. Best of both worlds, no debt and a holiday to look forward too :) x

Good idea about the saving for a holiday.

Thank you for taking the time to reply. As I said I feel better already even though the credit card company don't know yet!

Do you use any websites to check your credit score? I use Clear Score and it tells you the likelihood of being accepted for credit cards etc. I've just transferred 2k to an interest free for 36 months which is making a huge difference

I use Noddle because it's free. I've gone from 1/5 to 3/5 in the past few months.

I applied for an M & S card and a Post Office one with lower interest but it was a no

Stop applying for cards and clear it off definitely. Being free of that monkey is a brill feeling.