Credit card debt - advice on best approach

[SnowdropEirlys]

I'm facing £20k of credit card debt across 4 different cards and determined that this is the year that I will clear the balances. Balances are;
£11k
£800
£6k
£5k

I've been in denial and spend far too much, have ignored the total balances for too long, and just paid the minimum amount per month for years.

I'm now in the fortunate position of a temporary contract that pays well which should go on a few months so have the opportunity to pay off almost 4k a month, as long as this contract continues.

I'm willing to change my lifestyle, change my spending habits and will quite enjoy the challenge of finally bringing these balances down - I think the relief of seeing them finally come down will spur me on.

I'd be grateful for advice on how best to tackle this. Should I chip away at each balance, or aim to bring the largest down first?

I'm not sure that I want to take out a consolidation loan which means I will be paying less per month for longer, years even - I'd rather just tighten my belt for a few months and blitz this, once and for all, now I have this opportunity.

I'd be grateful if anyone has any other suggestions or has any experience of tackling large credit card balances and bringing them right down?
Thanks in advance.

Just as an extra thought. Paying debt off doesn't always address the problem. When I was younger I cant tell you how many times I consolidated and repaid only to run the debt up again. It sounds like you have thought about this, but make sure you tackle it. It will be so easy to run up again and we always kid ourselves with thoughts like 'I will get the card to help me fix the boiler, then pay it off' and before you know it you are in debt again.
Make sure you know your income / outgoings each month. Make sure you are honest with yourself about what you are actually spending as well. I have a spreadsheet with all my expenses on and recently on doing a deep dive I realised I hadn't put on some small subscriptions (and my Diet Coke which adds up!) and actually all the little things I didn't think mattered added up to £111!
Work in a way to start a rainy day saving pot, even if it starts off with small amounts - that way if something happens you won't need to get into debt.
Just as a last minute inspiration, we were was once £32, 000 in debt and now I am debt free. You can do it! x

Thank you all, for the support and inspiration.

A little update from me.

So with the £800 card paid, on Monday I was able to pay £3300 off the £11k card, which feels like a good step forward. I keep checking the balance and enjoy seeing that reduced balance already.

I have checked the interest rates. The 11k card interest is 2% a month. The others are at 1.4% so I am now focussed on getting the 11k card down asap.

Once that card is below 5k, I may think about making larger payments on the other two to see some progress in bringing those balances down as an encouragement to myself!

I am due to receive two large payments on my contract over the next two weeks so will hopefully be able to pay another 2k off the 11k card by mid-March, maybe more.

@talia66 thank you - I have started to examine my outgoings and bills, looking at where I can reduce my monthly costs. I really want to make the most of this opportunity of this contract to finally rid myself of this burden that has been with me for so many years.

I'd also like to keep posting my progress as the support of this thread is really helpful and encouraging me.

That’s great progress! Well done.

I think you said the £11k one was barclaycard… just be aware they’re not likely to offer a 0% interest on balance transfers and may even reduce your credit limit to something like £250 when you’ve cleared it… that happened to a friend of mine and I saw a newspaper article on how they had done it to huge swathes of people.

I’ve just paid another £1500 off the 11k card. Happy and relieved about that!

That's fantastic!

What are your balances now? [Shakes pompoms]

That's great! Nice one!

I've looked back - you've nearly halved the biggest balance already?? That's amazing.

Can you imagine the feeling when you've paid them all off?
I agree with pp who said an emergency fund is a good idea so as not to be backed into debt again.

Thanks so much for the words of encouragement, it means a lot.

A reality check earlier after I paid the £1500 on the 11ker- was hit by the monthly interest charge of £200 so my balance showed more than I expected. I then paid an additional £30 to bring the balance under £7k so it’s now at £6970 so at least it has a 6 at the start which is spurring me on!

Balances now at:
£6970
£5900
£5400
£0!

All going in the right direction!

I’d rather not say exactly what I do (it is legal and PAYE!) but as I mentioned earlier, only a short term contract (which was recently confirmed as ending at beginning of July). This is my opportunity to finally blitz these cards, in this temporary window of high earnings, before I go back to a normal job and no way of paying more than minimum payment per month, as I have been doing for years and years.

I’m still enjoying the challenge of spending less, spending carefully and just focussing on spending on what I need.

What is interesting is that the next monthly payment now showing as due in April is £298 whereas in March, it was £395 so that’s already coming down drastically.

Apologies, should have said that refers to the 11ker.

I'd be quite tempted next month to pay off just enough to make them all £5000 ... but thats why I'm crap with money

@SnowdropEirlys - There used to be a very wise woman on MN - an accountant I think - who once advised - if you can't pay all the card of at once do a standing order for as much as you can rather than pay the minimum each month - that way the interest comes down each month - but I am sure others will tell you better

What a fabulous effort you have made though. My mother used to say when she had no money she used to want things - when she had some she didn't really bother ( I know not exactly the same - but you have a goal and "stuff" isn't going to fix it ) I think you are just so much doing the right thing here

to you and all the very best

Thanks so much everyone - I will keep at it!

@BasiliskStare - a goal that stuff isn't going to fix. That is a perfect way of putting it! I'm also not thinking of it as money, detaching myself from thinking of what I could do with the money if it was there to spend instead, to me now these are just numbers on a screen to bring down to zero.

Two bits of advice:
Make a pact never to borrow money again
Check out iDave Ramsay on you tube.

@Aubree17

Two bits of advice: Make a pact never to borrow money again Check out iDave Ramsay on you tube.

I agree. I'm not sure Dave Ramsay has all the answers but he certainly changed my mindset. I feel very uncomfortable with any form of debt nowadays.

Following for progress updates

Thank you @Aubree17, I will do.

I feel so positive about taking this action now, and very fortunate to be finally be in a position to tackle it after 10 years.

You can ring the charity step change for advice.

You are doing so well! It is so shocking how quickly it makes a difference. I know what you mean, it does become like a weirdly enjoyable challenge! Just think this time next year you will be such a better position

Another £1200 off the 11ker today - should bring balance down to £5700.

Keeping going. Have put £250 away to one side as savings this week as I have a few bills going out and will try to live off remaining budget in current account so I can also put that £250 towards the credit card balance at end of the week.

Still only spending on essentials.

Sounds brilliant. You have inspired me this month.

Fantastic! That has near enough halved that balance! That's so good in such a short space of time.

Just think once you pay these off your free money will be all yours to save / treat yourself x