Best way to clear 6K?

L

lollipop

Registered User
Messages
37
At the moment I have 6K on 2 credit cards and would love to clear them. 4900K is on Tesco visa card @0% for 6 months, balance is on MBNA Visa card @10%.
Am i better off getting loan from CU or similar for the entire amount OR leaving the 0% balance there and clear the other card? MY SSIA due to mature in Oct so I'm hoping to clear the lot then but wondering whats best to do in the meantime? If I take out a loan, does this go on my credit record..even if its paid off is it better not to take it out at all??
Or is it worse to have 2 visa cards on my credit record?? Confused! Thanks for any help. x
 
When does the 6 months interest free period expire on the Tesco Visa card? And have you reached your credit limit on this card?

Are you already a member of a credit union (i.e. can you borrow from them at the moment)?
 
lollipop said:
At the moment I have 6K on 2 credit cards and would love to clear them. 4900K is on Tesco visa card @0% for 6 months, balance is on MBNA Visa card @10%.
Am i better off getting loan from CU or similar for the entire amount OR leaving the 0% balance there and clear the other card? MY SSIA due to mature in Oct so I'm hoping to clear the lot then but wondering whats best to do in the meantime? If I take out a loan, does this go on my credit record..even if its paid off is it better not to take it out at all??
Or is it worse to have 2 visa cards on my credit record?? Confused! Thanks for any help. x
Click to expand...

Let me make a suggestion.
Sit down and work out how much you spend each month on outgoings - rent/mortgage, loans, the essentials.

At the end, you should end up with a figure on how much you can spare to put off the cards. Lets say for example that figure is 650 euros.

Now work out what the minimum payment is - I'd suspect its about 200-250 on each card.

Take the card with the lowest balance and work out the minimum payment, then deduct from the 650 - for example, 650-200=400

Your total debt is 6000 - so for about 10 months pay the minimum on the lower card and the difference (i.e. 400) on the other. After about 10 months - assuming you cut up or hide away the cards and spend no more on them, you'll have them cleared in full.

That's what I did anyway. It hurts but it pays them off rapidly (for me usually about 4-5 months but I never go above 3k in total on credit cards). It also helps if you transfer to a lower or zero rate card.

Also if you get any windfalls such as bonuses or tax back, put it on the cards.
 
I have twice gotten loans to pay off credit cards as loan interest rate way less than cc..........but then just run up cc again..............so it depends on what you will do with cc once you pay it off with loan.
I now have just gotten on with it, paid interest & reduced down cc without loan...........
If you think you have the self discipline to not run up cc again then it probably is worth getting a loan out over 1 year to pay them off (once the 0% period expires). but if you are like me then probably just as well to try and reduce them down.
 
Thanks everyone some great suggestions there. I've only transferred the 4500K so that interest free period begins now. Yes i am a CU member and have my SSIA with them.
Good idea lff12 to pay off as much as i can on the other card and get it down. I hate only paying min payments!
Think I do have self discipline to not use the card but its the online stuff that racks up and I forget about it!! thanks everyone
 
Legin said:
When does the 6 months interest free period expire on the Tesco Visa card? And have you reached your credit limit on this card?

Are you already a member of a credit union (i.e. can you borrow from them at the moment)?
Click to expand...
Yes sorry meant to say that they would not transfer the total 6K but only 4500 of it..think I said 4900 on my original post!!
 
lollipop said:
Think I do have self discipline to not use the card but its the online stuff that racks up and I forget about it!!
Click to expand...
This is contradictory and suggests to me that you would be better off without the cards ASAP.
 
As some others have already pointed out. Your goal should be to get rid of the cards completely within the short to medium term. In the meantime you need to reduce the amount of interest you are paying. Concentrate on paying off the second card balance first (i.e. 1500), during this time only pay the minimum payment required on the Tesco card, and put all surplus cash into clearing the MBNA card. When it's paid off - get rid of it. There is no reason for you to have 2 visa cards, especially when one has a credit limit of 4500K.

Then focus on reducing the balance on the first card (currently interest free). However, make sure you continue to make the max payment you can into your SSIA. Any cash leaft free after that should be put into the visa. Once you receive you SSIA pay the card off in full, and again - get rid of it. Use a laser card instead if possible - NO OVERDRAFTS THOUGH.

If you absolutely, positively must have a Visa card, then get them to reduce your credit limit drastically and make sure you are with whichever organistion charges the lowest interest rate. Even the most disciplined person often falls down on credit cards - its just too damn easy to spend money and it often feels like free cash (Once I asked my brother how much money he had, he included the credit limit on his visa in the calculations! - says it all really!).
 
You must log in or register to reply here.
Back
Top