Credit card debt

[Ashleighz88]

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 😣

Have a look at an IVA where you consolidate debts into and affordable repayment. They will liaise with the CC providers.

www.citizensadvice.org.uk/debt-and-money/debt-solutions/individual-voluntary-arrangements-ivas/before-you-start-an-iva/check-what-an-iva-is/

Pay off one with very little on then cut it up. Then focus on the next smallest then cut that one up. You only need one credit card. I know it's easy to get carried away but you'd be so much happier if you repaid the debt. It is worth scrimping for a few months to get two of them paid off. Then you can focus on the larger one. I've just had an email from Lloyds today to say interest rates on credit cards are going up in August.

😭 I know, it's the worst time to have debt.

I'm thinking pay the big one first to get the interest down on it.

I don't want it to impact my credit score as I want to be able to move house before 7 years. I also want to pay this debt off as fast as possible rather than it dragging on for years and years.

An IVA is also unsuitable because it sounds like you have enough money to service your debts.

But might you be tempted to put new stuff on little ones. By paying off the smallest first you can cut it up. Then you can't get tempted. I'm thinking Xmas is coming ahead.

@caringcarer well I've never made purchases on the smaller ones, I've only ever had one card, which is the biggest Lloyds one. The smaller ones are where I've balance transferred.

Not much movement this month as I have vet bills, but still in the right direction, and no card to spend on.

Lloyds - paid £400, down to £10,770
Tesco - paid £150, down to £4382
Halifax - paid £50, down to £1762.

I'll be triple thinking before I spend anything this month, and then come July pay I'll hopefully be able to throw £2000 at them.

I'm literally in the same position as you. I have 3 cards. 0% just finished on one with £10,000 balance. I have another one with £5,800 and a third one with £2,800. I don't seem to be eligible for another 0% balance transfer card but might try directly with my bank.

I am going to try and pay the smallest one of first as I could do it in two months and then focus on the one with the highest interest rate.

I went for years and years without any debt and it's scary being in this position now.

@Ashleighz88 and good luck for July!

Get yourself over to moneysavingexpert.com and use the snowball calculator. You need debt amounts and interest rates etc. The calculator will set out how much to pay off each one so you pay the least interest!

I can't stress this enough - consolidation is rarely the answer to any debt problem!

I'd guess most of us have done this to some extent at some point in our lives, I know that I have! Good news is your recognise its a problem to get fixed and more importantly sounds like you want to address it.

Great that you have income each month that you can make some real traction on clearing the debts as well.

If you don't have any balance transfer options available to you then if it were me make you you are making the minimum payments on all your debts each month, then the surplus you pay off the one with the highest interest rate. That is the one that is cost you the most money each month. It can be tempting to pay off a smaller one to clear it, that might give you some psychological comfort but it's mathematically not the best thing to do. I wouldn't close your credit card accounts personally either, if you really don't trust yourself just destroy the cards. Don't be tempted to take out a consolidation loan - it very rarely works and often makes the situation worse.

Thanks to everyone for the encouragement and support. I agree on consolidation, I'm not doing that, I think I have enough surplus to actually make a difference in 6 months. I'm going for slightly above the minimum on call cards, but putting all the rest into the highest balance (which is the highest interest rate).

@Sunsetred I have a good credit score so the fact I'm not being offered 0% has to be down to my current borrowing situation, they can see I have debt allover. I'm hoping in around 5-6 months when I've made a good dent in the debt I'll be offered balance transfers again which would help in getting rid of the interest each month.

Are you going to make a life change and try and pay the debt down like me? Join me on this thread in updating each month. Another person was in a similar position and said they would direct message but I don't think I can get direct messages on my app?

I just can't wait to be debt free. I feel like it's a deep dark secret that is suffocating at times.

*all cards

Hey
Hows it going??
Have you got rid of the halifax one yet??
I also have 3 cards-1 I want to get rid of and 2 to keep. Just over £2k in total.
I'd like to get a travel reward credit card so I earn airmiles everytime I use it then I'll just use it for the food shop every month to get something back.
Sounds like you're determined to clear it in the next year or so.

I hope you've made a dent to those cards OP.

Hope you're doing ok OP. Is your husband eligible for any 0% deals?