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Credit card debts - what to do?

Hi I am a 21 year old student (but I dont have associated student debts) but I have various debts (mainly down to car running costs and things)

Anyway I have about 2k each on 2 cards that are currently interest free. And also I have about 800 on another credit card (this one will be almost totally paid off with my next wages though).

Both my interest free cards run out soon (Virgin and RBS) - i dont think I will be able to get many more though - especially as a lot of the damn palces use MBNA and RBS as their providers (so I wouldnt be able to transfer a RBS balance onto a Tesco card)... I think the RBS int free runs out next month.

Anyway as I am going abck to uni in October I wont be able to earn as much as I am in the holidays so I am considering what to do. Ideally I would like all 4k of the debt on one card that is interest free so I can concentrate on paying it off that way, but its unlikely I can get anymore int free cards (I have had a MSDW one as well!) so I am considering a loan for about 4k - at least this puts all the money in one place which I can then focus on then paying off - something like 100 a month maybe - even though this adds interest it may be worth it if it makes my life easier and then will at least give me spending cash for a few months instead of spening all my wages on paying off debt.

So what do you guys reckon? Should I just keep the credit cards and let them accumulate interest while trying to pay them off both at the same time but in small parts - I think as they both have about 2k each on my min payment has to be about 30 on each so I *have* to pay 60odd quid a month on them anyway so 100 a month on the loan may be simpler.

On the bright side I am hopeful of earning enough to be able to pay it all back by next summer anyway - so if I took out a loan I would be looking for soemthing with a low rate (obviously) but also something which allows me to pay extra back every month so I can pay it back quicker.

Any tips?

Cheers

Reply to
mo
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do you mean you havent taken the student loan available? This is by far and away the cheapest option. Every student should take it in full even if they dont need it. (for anyone that argues that - interest rates even on saving accounts higher than that on the loan).

Why can you not get anymore interest free cards?

Must be some on the list at

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Reply to
Neil

oh also - i've had no problems trasnfering balances between MBNA run cards. Aslong as its not a MBNA direct card and provided via another trade mark it think they allow it.

Reply to
Neil

Student loans Open student bank account with a loan facility Credit card options Snowball - pay off highest interest rate first and min payments on everything else. See Ask on here

hth

Daytona

Reply to
Daytona

Thanks for replies.

Thing about student loan is that it only comes a little at a time - i.e 3300 over 1 year (which is all I can get now anyway) will come in 3 installments with the final one being like 6+ months away. - Plus I prefer the flexibility of being able to pay off the debt straight away now while I am still at Uni rather than later...

I will look into the interest free card thing but they prob wont give me anymore cards as I have so much debt already (and am only 21 as I said)

I am am worried I might not be able to get a 4k loan as they will see that I already have a 4k debt and may not wanna give me - i.e I might have to call up and explain I dont wanna spend another 4k but wanna use it to pay CCs off...

Reply to
mo

Eric

Reply to
Eric Jones

well i might see if i can get one or 2 mroe int free cards - this will be ideal as i can then just pay 200 or so off a month without incurring charges which is better than loans anyway...

Reply to
mo

Just applied for a couple online - rejected by Halifax and GM.

Waiting on letters from Easymoney and Natwest but I can guess what they will say!

I hope to get the Natwest one anyway - its 9months - although I have had a card with them before..

Reply to
mo

In message , mo writes

The student loan that was available to me was just over £1000 per year, so I just took the loan each time and shoved it into a high interest account until they asked for it back.

Reply to
me

can you now not request any previous loan entitlement not taken up to be transfered in one go so giving you a cheque for all last years worth?

i'm sure you could do that when i was there.

As for wanting to pay your debt now. Its a bit daft to give up on such a cheap loan. Its hardly a debt when compared to normal loans as your repayments are so low.

You should take as much as you can and stick it into a high interest account. You could always pay it back in one lump sum at the end of uni but even that would be daft as your repayments are minimal and the interest is also.

Reply to
Neil

I'll ring em and see if they will give me 3300 in one year for all of last year which would be 'enough' as i would then work my arse off to clear the rest by the time uni starts.

Reply to
mo

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