Credit Card Debt Situation
Q: Bit of history, after a long period of divorce, loss of employment and worst off all, depression I found myself in bit of a hole financially. In the end I ended up single, damaged credit record, and even more depressed. That was a few years ago, thanks to hard work now I'm nearly out of the hole, my only lingering debt is my credit card and I want to climb out over the rim to do something about it. It's not a huge amount compared to some of the tabloiod horror stories I read about, currently about 5500. I don't actually use it now - I used it in the dim and distant past to get me out of a crisis. Another issue is I could be leaving the country. Of course the tempation is to walk away from it but unfortunatley I have scruples. A firm believer in these things catching up with you. So what can I do? It's is over three years since my credit mistakes so should I attempt to get a new CC with a balance transfer? And pay off in large chunks when I get the cash? It's my plan to sell up, not wanting to take all my stuff abroad! Funny how typing it out is good therapy - that makes sense to me. Another issue is I've never appeared on an electrol roll for ages. Moved about with work and never bothered although I appreciate I should by law. I have done at this address. I am a private tenant. I'm currently paying off the minimum balance which I know is stupid but I have tended to shut my eyes to it - reminds me of the years I was clinically depressed. Time to face my demons again. I earn about 2000+ a month now net, but only a third of that is part-time employed income, the rest is from various freelances, my goal being never again to ever rely on one income stream.
A: _Well at £2000 a month a £5500 credit card debt shouldn't take you too long to remedy. You have the right idea about doing a balance transfer to a 0% card. make sure you do this sooner rather than later as many if not all card companies are about to put a 2% charge on for balance transfers. The age of the 0% balance transfer is coming to an end. If you move to a card like the Virgin credit card you will get 9 months interest free which should be long enough for you to pay it off entirely. Check out www.moneysupermarket.com for comparisons on all of the available cards if you want to look at it in more depth. You will be restricted only by the amount you can transfer so you may have to knock the amount down a bit over teh next few months first. If you pay off in chunks over the next 6-9 months you should be able to clear it all relativly quickly leaving you