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Debts/Credit Cards how best to proceed

3 replies

Hdkatznahtw125sgh · 21/02/2025 20:20

Hi

I'm trying to get my debts a bit more under control. I earn ~2.5k after deductions. I've joined 2 x staff banks so will pick up extra shifts (but not able to book shifts yet).

My mortgage is really low, and the fixed term runs out in just over 3 years, when I will look to sell and move to a house.

My debts are as follows:
Ikea finance 0% 1750, pay 84 a month. Not concerned about this one.
Credit Card 1 4050. 19 months left 0% interest. No spending on this.
Credit Card 2 360. 6 months left 0% interest.
No spending on this.
Credit Card 3 490. 9 months left 0% interest. I’ve stopped spending on this but only this month.
Store Card 220. Pay 60 a month. No spending.
Klarna 72. Whilst this isn't great I can control my spending more if using klarna pay in 3 than the credit cards.

I'm overpaying credit card 2 currently as that has the shortest amount of time left at 0% interest. I am also overpaying the store card. I plan to cancel both as soon as paid off. The bank shifts when I eventually can start them will go straight into these two also. I pay the minimum plus £10 on the others for now.

I'm not eligible for a debt consolidation loan without an extortionate interest rate so that isn't an option. I have no defaults or similar just need to streamline it all and get the debt down. I bought a money pit of a property which is why it required extensive work (lessons learnt). In hindsight I should’ve got a home improvement loan.

Any advice appreciated. I have a 1.5k emergency fund.

Thanks

OP posts:
LittleRedRidingHoody · 21/02/2025 20:23

Looks good. I'd definitely do Card 2, then 3, then 1. Just don't get in the habit of thinking 'oh yay, I have 6 months to pay this 360 off' because then you'll end up tight for the other 2 cards. Just keep throwing everything you have spare at them til they're gone (and don't add any more)

Hdkatznahtw125sgh · 21/02/2025 20:46

LittleRedRidingHoody · 21/02/2025 20:23

Looks good. I'd definitely do Card 2, then 3, then 1. Just don't get in the habit of thinking 'oh yay, I have 6 months to pay this 360 off' because then you'll end up tight for the other 2 cards. Just keep throwing everything you have spare at them til they're gone (and don't add any more)

Thanks, I should be able to pay off my second credit card within 2 days. Weaning myself off spending on them has been difficult but I've finally got there and aim to stay there.

OP posts:
Hdkatznahtw125sgh · 21/02/2025 20:46

Hdkatznahtw125sgh · 21/02/2025 20:46

Thanks, I should be able to pay off my second credit card within 2 days. Weaning myself off spending on them has been difficult but I've finally got there and aim to stay there.

2 pay days*

OP posts:
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