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Original poster

Credit card debt

43 replies

Ashleighz88 · 26/06/2023 22:38

So I've got into a really bad situation with credit card debt, it's really getting me down so I'm going to really get my head down and tackle it from today.

I'm currently paying.

£800 a month on a loan (this can be repaid early but I'm just ticking along with it for now) 18 months left.

Credit card debt of:
Lloyds- £11,170- jut rolled off 0% monthly repay 350 ( mortifying 😣)
Halifax -£1,812- monthly repay -£20 until September
Tesco bank- £4,532 - month repay of £133

I am on a good salary and I can afford to put £1500 a month to the debt on top of paying the minimums and my loan. It's just stopping the spending and keeping focused I struggle with. Hoping this thread might help me stay on track.

Would people pay off the £11,170 first? Or get rid of that £1,812?

I am mortified about this, it's like a dark secret, so really hoping you'll be kind 😣

OP posts:
GrazingSheep · 26/06/2023 22:42

Which one has the highest interest rate?
Focus on that one first and pay it off.

GrazingSheep · 26/06/2023 22:44

Actually pay off the £1812 first. Put the £1500 next month off it and then £312 in August. That’s that one gone.

GrazingSheep · 26/06/2023 22:45

Then for the next 3 months pay off the Tesco one.

Changingplace · 26/06/2023 22:45

Throw everything at the one with the highest interest rate and get that one paid back asap.

I too had an issue with credit card debt, it’s hard but you can get this paid - cut up your existing cards and as soon as they are paid off close the accounts.

Riverlee · 26/06/2023 22:48

Either get a 0% balance transfer credit card, or get a loan with a much lower interest than your credit cards, and consolidate them. Then use a budget planner to work out you income and expenditure. Then pay the amount of you can afford, without incurring further debt.

actually, probably best to do the budget planner first, to see what term you need the loan for (see Moneyexpert.com).

PrimrosesandPears · 26/06/2023 22:50

What are the interest rates on all of them (including the loan?) Is your credit rating good enough to get a balance transfer card?

My first priority would be to get the interest as low as you can on all your debts overall (e.g. by moving some to a 0% deal if eligible). Then pay off the highest interest debt first with min payments on the others. You can do it - £1,500 is a good amount to be able to clear!

Original poster
Ashleighz88 · 26/06/2023 22:52

Thanks everyone. Im going to keep updating here as I pay off, as a tracker for myself.

I am so annoyed I have got myself into this position.

OP posts:
Original poster
Ashleighz88 · 26/06/2023 22:54

PrimrosesandPears · 26/06/2023 22:50

What are the interest rates on all of them (including the loan?) Is your credit rating good enough to get a balance transfer card?

My first priority would be to get the interest as low as you can on all your debts overall (e.g. by moving some to a 0% deal if eligible). Then pay off the highest interest debt first with min payments on the others. You can do it - £1,500 is a good amount to be able to clear!

Thank you for the encouragement. This started with my wedding few years ago, I got a Lloyds credit card, i then balance transferred to 0% cards to avoid interest and was paying minimums, before I know it and I'm in this position. I can't get another 0% card so I'm going to have to clear these down as soon as possible.

OP posts:
TheGoddessFreyja · 26/06/2023 22:58

I would consolidate into one lump sum and pay it back that way its in one monthly payment and chop up those credit cards xx

Original poster
Ashleighz88 · 26/06/2023 23:02

TheGoddessFreyja · 26/06/2023 22:58

I would consolidate into one lump sum and pay it back that way its in one monthly payment and chop up those credit cards xx

I did think that but then I read not to do that because you end up paying a lot more back.

I just want to feel like I'm making progress in clearing them. I cannot tell you how much I want to be debt free and never use a credit card again:

OP posts:
onedone · 26/06/2023 23:14

Have you had a look at Martin Lewis?

I was in your position a few years ago - I used his online eligibility calculator and got a 0% balance card - after being told I couldn't get one at all - then really went for it and paid it off completely in the (18 months I think)
Didn't take that card out with me (so couldn't spend on it and ruin the 0%) then cut up the other credit cards so they wasn't to hand so couldn't spend more on them either ....

Gh12345 · 27/06/2023 00:32

If you can’t get another 0% balance transfer, I’d be inclined to do the debt snowball method and start by clearing and closing your smallest first and working your way up.

Northernsouloldies · 27/06/2023 00:37

Once you pay off a card ask for a hard close on the account.

BarbaraofSeville · 27/06/2023 06:01

Definitely read the get out of debt advice on Moneysavingexpert and follow it.

For all your cards, pay by standing order for £1 more than the current minimum as this removes the minimum payment marker from your credit file and makes you look in a better position. Then overpay on the highest interest rate debt until that's gone and move onto the next highest interest rate etc.

Have you actually applied for another 0% deal? Even if an eligibility calculator says you have no/low chance, they're often wrong, so it's always worth a go.

If you can't get a no/low interest rate balance transfer, a loan might be a good idea if you're disciplined to not run up more debt and the interest rate is lower. You can also overpay loans to shorten the term and reduce the interest charged.

You say a lot of the debt was to pay for your wedding. Are you still married to this person and have they contributed to the cost of the wedding, helping pay off the debt etc?

teenagersandatoddler · 27/06/2023 06:09

Following as I am
In a similar position

PeachP · 27/06/2023 06:32

Post on the money saving expert forum, under the Debt Free Wannabe board. Honestly it's full of people who can help and who have been in the same position themselves so can help you hold yourself to account too. And the board is great for tracking how you're paying off the debt. Good luck!

prawnring · 27/06/2023 06:53

You need to pay off the one with the highest interest rate first. That one is costing you the most to keep running and will save you the most money by sorting it out.

What rates are you paying?

Original poster
Ashleighz88 · 27/06/2023 08:01

If I get declined when applying for 0% will this affect my credit score?

OP posts:
Original poster
Ashleighz88 · 27/06/2023 08:02

onedone · 26/06/2023 23:14

Have you had a look at Martin Lewis?

I was in your position a few years ago - I used his online eligibility calculator and got a 0% balance card - after being told I couldn't get one at all - then really went for it and paid it off completely in the (18 months I think)
Didn't take that card out with me (so couldn't spend on it and ruin the 0%) then cut up the other credit cards so they wasn't to hand so couldn't spend more on them either ....

It's really encouraging to hear people can get debt free and come out the other side.

OP posts:
Original poster
Ashleighz88 · 27/06/2023 08:05

BarbaraofSeville · 27/06/2023 06:01

Definitely read the get out of debt advice on Moneysavingexpert and follow it.

For all your cards, pay by standing order for £1 more than the current minimum as this removes the minimum payment marker from your credit file and makes you look in a better position. Then overpay on the highest interest rate debt until that's gone and move onto the next highest interest rate etc.

Have you actually applied for another 0% deal? Even if an eligibility calculator says you have no/low chance, they're often wrong, so it's always worth a go.

If you can't get a no/low interest rate balance transfer, a loan might be a good idea if you're disciplined to not run up more debt and the interest rate is lower. You can also overpay loans to shorten the term and reduce the interest charged.

You say a lot of the debt was to pay for your wedding. Are you still married to this person and have they contributed to the cost of the wedding, helping pay off the debt etc?

Yes my husbands wage is contributing too, he is covering all bills and we put our money together to pay off debts and live with.

I only have a card for the Lloyds card which is the biggest balance. I've cut that up this morning so no more spending. I've never had a card for the others as they were only used for balance transfers.

I'm going to start with the biggest one, as the minimum payment and interest is the highest on that one. It's just staying focused as it's going to take a good few months before I feel like I'm making a dent

OP posts:
Original poster
Ashleighz88 · 27/06/2023 08:06

teenagersandatoddler · 27/06/2023 06:09

Following as I am
In a similar position

What is your position? Join me and let's make the change today.

OP posts:
BarbaraofSeville · 27/06/2023 08:30

Ashleighz88 · 27/06/2023 08:01

If I get declined when applying for 0% will this affect my credit score?

Not as much as people often talk about in forums etc. No-one has a 'credit score' as such and all lenders use different criteria to decide who to grant credit to.

Just because one rejects you doesn't mean another one will, although obviously repeated rejections means you're probably be unlikely to take more credit.

But then you have to think about what are you 'protecting' your credit score for if you're worried about it being damaged? Unless you're expecting to remortgage soon, the reason you need it most is to cut the cost of your current debt (because you're not planning to borrow any new money are you??) so you might as well 'spend' your credit score on a couple of attempts at lowering the cost of your original debt.

But if you try twice and get nowhere, probably best to up your payments to slightly above the minimum like I posted above, throw as much as you can towards your most expensive debt, and try again in 6 months time.

Good luck.

teenagersandatoddler · 27/06/2023 09:37

@Ashleighz88 - will drop you a PM

cheerypip · 27/06/2023 09:41

Have you checked if any of your existing cards are offering 0% balance transfer from one of your other cards (instead of applying for a new card?).

They may not be now if you have outstanding balance, but once you pay off one, that company may start offering you a balance transfer deal again. So I would keep the card live once you've paid it off. BUT be very disciplined and DO NOT spend anything new on it.

Original poster
Ashleighz88 · 27/06/2023 11:07

cheerypip · 27/06/2023 09:41

Have you checked if any of your existing cards are offering 0% balance transfer from one of your other cards (instead of applying for a new card?).

They may not be now if you have outstanding balance, but once you pay off one, that company may start offering you a balance transfer deal again. So I would keep the card live once you've paid it off. BUT be very disciplined and DO NOT spend anything new on it.

I won't be spending. I've now got no credit cards, the only one I had has now been cut up.

All my cards currently say "no available offers" on transfers, I assume it's because I have so many now. I can't get any 0% so I'm going to have to try and pause life and pay down as much as I can.

Annoying I'm paid end of the week but it's going to bet bills this month, from Julys pay I will be paying off 1500-2000ish depending on if anything crops up.

I can't wait for the loan to end too as that's £800 back.

OP posts: