5k debt with cc

[germyrabbit]

i went on a spendy mad frenzy. have just been offered a loan £7.5k , £140 per month for 5 years to pay off, makes sense yes?

But you only have 5k debt - so to borrow 7.5 makes NO sense whatsoever.

Have you done the maths? have you worked out the interest? I just have and you will be paying back £8,400 So you will be a further 3.5 grand in debt.

If you have a 5k debt, why are you taking out a 7.5k loan?

When I went through a manic phase, I racked up debts of 25-30k. I cut up my cards, got a loan from my bank and then paid off the debt over 5 years, but I only borrowed what I needed to pay off my debts. I've never been in debt since.

Are you sure that you will be able to rein in your spending? Will you have enough money to live on when the £140 goes out each month?

If you don't cut up your cards, you will end up with £140 a month + creditcard debt again as the temptation will be there to spend on it. You need to learn to only spend what you have.

i just thought the extra 2.5k would be nice

the £140 out per month would only be a little more than the £120 per month i am paying barclaycard

i worry that i am becoming a spendaholic , didn't think of that really shit

it would equal what i would pay barclaycard for 5 years plus would give me £2.5 more

it is a bit mad looking at it that way

i just get a real kick out of buying stuff, it's ridiculous but i don't go out or smoke :( have to have something (yes i know it doesn't make sense)

Please get help with this, my DP and i got into terrible debts (not through a spending habit, but were living off visa instead of getting help when he was off work caring for me and DD when i had PND) And then we borrowed to get out of it, couldnt keep up the repayments, borrowed more, remortgaged and ended up in all sorts of trouble, we nearly lost our house, have county court judgements against us. We can now barely manage our mortgage but have the rest of the debts under control. PLEASE don't end up where we did - over thins that "might be nice" Seriously, it has caused pretty much irepairable damage to our relationship, i am on and off ADs and i almost have a panic attack every time a letter falls on the floor. Do you have children?

You are right - it "might" be nice but what happens when you've spent that 2.5k on "nice" things? Where will the next "fix" come from?

Please stop spending what you haven't got the money for. If you can trust yourself, get a 0% card and transfer the 5k. Pay it off at an amount that will clear it before to 0% runs out. You will then (when it is paid and not until) have a whole £120 a month to spend on "nice" things and it will actually be your money you are spending.

Please be sensible. x

Get a 0% balance transfer card, some of them now are quite long.
I transfered my debt to one, worked out howmuch id have to pay every month to clear it within the 0% period and then cut it up.
So i just pay a set amount to that card every month now until it clears next month

It's not buying stuff that's the problem, it's that you can't afford the stuff you buy that'll get you in the soup eventually.

Have you ever really sat down and worked out how much spare cash you have each month once all your bills & other essentials have been covered? If you know that figure you could convert your CC balance to a 0% card (which you then cut up) and then aim to pay back as much as possible each month until the 0% period expires. There's usually a fee for transferring the balance. List of some 0% cards However, if you can pay back £200/month, for example, your £5,000 would be halved in just over a year. Repeat the exercise and you might be debt-free in just over two.

thanks for advice will look into tranferring the debt over

I suggest that you also make an appointment with your GP and get a referral for your shopping. It sounds like an addiction to me, either that or you are compensating for something else missing in your life.

Good idea, my DH's ex got spendy and went bankrupt for £50,000.