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  • FIRST POST
    • ollie_ursus
    • By ollie_ursus 25th Aug 17, 11:56 AM
    • 5Posts
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    ollie_ursus
    Credit card experts needed!
    • #1
    • 25th Aug 17, 11:56 AM
    Credit card experts needed! 25th Aug 17 at 11:56 AM
    Hi all,

    I am Ollie and I have a lot of debt. I have buried my head ad ignored the problem for too long.

    All my debt is credit cards, i have no loans and the only other thing i have is an overdraft with halifax (first thing that needs to go!)

    have a barclaycard with 13500 on it with a limit of 14000. I have an MBNA card it 8500 on it with a limit of 9900. I have Virign card with around 4000 on it with a limit of 4500 and this is the only card that is at 0%

    The other two big balance cards have APR. The barclaycard is the highest at between 17.9 and 20% apr. the MBNa is made up of half at 10.9 and the rest at 19.9.

    These debts came as an outcome of crippling depression, trying to look after a partner who was even worse with depression (and money!) living beyond my means and being utterly idiotic.

    I am fortunate in that i earn well with an OTE of 43k. I am currently making payments of around £650/700 off the card debt and not making a dent.

    would appreciate any and all advice as to how to get the credit card companies to reduce the APR they are charging as i have no available balance to tart the cards and without a home to leverage against no option for a low rate loan to consolidate. I am i a much better place, i need very little to get by on every month and dont spend frivolously anymore.

    I do owe money to family of 200 a month.

    i have no missed payments, CCJ's, Arrears or other negatives. my clear score is 355.

    If i can find a way to reduce the interest on my credit cards I can get them paid down and one day dream of being debt free.

    any help and advice is much appreciated.

    Many thanks,

    ollie.
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 25th Aug 17, 12:20 PM
    • 4,679 Posts
    • 8,858 Thanks
    enthusiasticsaver
    • #2
    • 25th Aug 17, 12:20 PM
    • #2
    • 25th Aug 17, 12:20 PM
    Have you tried ringing them and asking them to reduce the apr? Sometimes they will if you tell them you are experiencing financial difficulty but you do not really want it to show on your credit record. You may not be in a bad enough position though as you can afford minimums and have a good wage.

    If they won't then just focus on the Barclaycard initially and just pay minimums on the Virgin and MBNA. Unfortunately as the balances are so high the amount you are paying although not insignificant are being eaten up by the interest on the Barclaycard and MBNA card. £650 to £700 though does cover the interest so you are not in a desperate situation. It will come down but slowly at first and then after a while of getting them down the 0% deals are more readily available.

    Consolidation loans are the worst thing you could do. Have you tried applying for an 0% card recently as even transferring some off the Barclaycard will help. 20% on that balance over the year is between £2400 and £2700 (worst case scenario). You could post an soa (found on sticky at top of DFW board) to see if we can suggest anything else.


    Most important thing - REMOVE THE CARDS FROM YOUR WALLET. You cannot borrow your way out of this. As the debt decreases you will be offered more 0% deals.
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • ollie_ursus
    • By ollie_ursus 25th Aug 17, 12:30 PM
    • 5 Posts
    • 0 Thanks
    ollie_ursus
    • #3
    • 25th Aug 17, 12:30 PM
    • #3
    • 25th Aug 17, 12:30 PM
    Great advice,

    I am calling them both today to see what they can do for me rate wise. I have tried barclaycard with the old thinking of paying off the balance, could you do anything for me to keep my money there etc about 6 months ago to no avail. i will try them once a month politely and see if i get anywhere.

    I really do want to avoid a consolidation loan if i can.. the cards are long gone! I haven't spent a penny on them in months and months.

    I did apply for a tesco card about 6 months ago and they approved for a 1200 balance but i cancelled it. I am going to apply for another today and see if i can shift some of the barclaycard (even if it is 1000) onto a 0% deal.

    I am in the process of budgeting myself properly and cutting the fat where ive been stupid. I have cancelled my expensive gym and swapped all of my energy suppliers thus far. My earnings are all commission based after my 18k basic which is the only bummer.

    Do you recommend any reading or particular books to read to get me in the right mindset for this journey? while i am daunted at finally finding out how bad it is i am excited to get cracking and finally becoming a proper adult.

    Thank you for your reply, it means a lot to be able to talk about the taboo that is debt.
    • ollie_ursus
    • By ollie_ursus 25th Aug 17, 1:03 PM
    • 5 Posts
    • 0 Thanks
    ollie_ursus
    • #4
    • 25th Aug 17, 1:03 PM
    • #4
    • 25th Aug 17, 1:03 PM
    UPDATE: MBNA have said no to a change in interest, even when a manager was asked.
    • sourcrates
    • By sourcrates 25th Aug 17, 1:26 PM
    • 12,469 Posts
    • 11,861 Thanks
    sourcrates
    • #5
    • 25th Aug 17, 1:26 PM
    • #5
    • 25th Aug 17, 1:26 PM
    UPDATE: MBNA have said no to a change in interest, even when a manager was asked.
    Originally posted by ollie_ursus
    You really need to put it all in writing, and mention you are seeking advice from stepchange with the view to possibly obtaining a debt management plan.

    Even if you dont opt for a DMP, your letter will get past the call handler and his 19 year old manger, and get to the right dept.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • kram
    • By kram 25th Aug 17, 3:32 PM
    • 72 Posts
    • 64 Thanks
    kram
    • #6
    • 25th Aug 17, 3:32 PM
    • #6
    • 25th Aug 17, 3:32 PM
    The first thing to do is post your SOA here so people could give some advice?!

    Its in the debt free wannabe sticky on the main page.

    You could also look at the debt remedy tool on the sc website its completely anonamous.

    K
    • bexster1975
    • By bexster1975 25th Aug 17, 4:46 PM
    • 1,058 Posts
    • 4,847 Thanks
    bexster1975
    • #7
    • 25th Aug 17, 4:46 PM
    • #7
    • 25th Aug 17, 4:46 PM
    Hello

    http://www.stoozing.com/calculator/soa.php

    Statement of affairs link.

    Stupid question, have you attempted to obtain a 0% balance transfer card? There are quite a few, some with very long interest free periods ( over 2 years). If you are not in default and earn as you suggest, it must be worth a try.

    Bexster
    • enthusiasticsaver
    • By enthusiasticsaver 25th Aug 17, 4:56 PM
    • 4,679 Posts
    • 8,858 Thanks
    enthusiasticsaver
    • #8
    • 25th Aug 17, 4:56 PM
    • #8
    • 25th Aug 17, 4:56 PM
    Posting an soa is a good start and if you have a good credit history then it may be worth applying for a 0% deal. Be aware though you may fail on affordability if they judge you are overcommitted which you are really. They have no way of knowing that any new credit you apply for may be for moving debt around rather than going out and spending.

    I agree with sourcrates that a letter to Barclaycard and MBNA may be worth doing just to make sure you have exhausted all efforts to get the interest rate down. If you were able to get all of that debt on to 0% at some point in the next year you could be debt free in just over 3 years but it will take a lot of financial discipline.

    The secret is to know where every penny goes, budget for all expenses, especially the annual ones so the money is there waiting to pay for car mot and service etc, insurances and Christmas/birthdays. You have said you have already become quite frugal so that is good. Having an unpredictable income does not help though. I would also suggest you open an emergency savings account so you have a buffer if anything urgent happened and you need some spare money. It removes the risk of you turning to a credit card which you cannot do now.
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • ollie_ursus
    • By ollie_ursus 16th Sep 17, 7:26 PM
    • 5 Posts
    • 0 Thanks
    ollie_ursus
    • #9
    • 16th Sep 17, 7:26 PM
    • #9
    • 16th Sep 17, 7:26 PM
    thank you guys for the advice! i will definitely look into sending a letter to the expensive lenders!

    I have applied for a 0% card and was declined, committed indeed.

    Will writing a letter saying I am thinking of going into a debt management plan ruin my credit rating?
    • ollie_ursus
    • By ollie_ursus 16th Sep 17, 7:27 PM
    • 5 Posts
    • 0 Thanks
    ollie_ursus
    oh and i will do an SOA when i get chance. It is a real pain not having a steady income as it varies wildly month to month. the idea for an emergency fund is brilliant.
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