What to do with BOI CC?

[templeman]

I have a BOI CC with a €1k limit.I have card maxed out.Every month when i get paid I transfer €200-€300 off card but at end of month it is maxed out again.Should I transfer €1k to CC each month and use it to pay bills or cut up card and pay it off over few months?Thanks

 

[Boyd]

Cut it up if you cant manage it. Also stop all non essential purchases until this is paid off. Pay the maximum you can afford off it each month, without leaving yourself short at end of month e.g. 400 if possible. If you reduce day to day outgoings by E20 a week, that's an extra E80-E100 for CC this month.

The more you pay in one lump sum, the less interest you have to pay on outstanding balance. And since card is cut up, the balance should always be coming down. You should be debt free in 3 months this way.

 

[templeman]

Thanks for reply,Is my credit rating being affected at the moment?

 

[Boyd]

Well it's certainly not being helped if your CC is constantly maxed out. I'm not 100% sure how it works though.

You can request a copy of your credit rating if you are worried about same. It costs E6, the info is here: [broken link removed]

 

[templeman]

Ya thanks must order ICB report.

 

[serotoninsid]

Switch to a visa debit card and never go back to a fully fledged credit card ever again.

 

[templeman]

Yes i already have visa debit card.

 

[so-crates]

It won't appear on your ICB report as you have been making the minimum payment. The interest is a killer and the sooner you stop having to pay it the better. As others have said, stop using it, start paying off a bigger chunk and make a plan to clear it in a fixed time span. You will have to implement some austerity measures on your self to clear it though, the sooner the better.