In a bit of debt

MarkG_4

Hi

I'm ina bit of a pickle and want to know how I go about getting the interest on my credit cards stopped or at least reduced!

I have 2 cards Citi (24.91% apr) and monument (24.10% apr)

As you can see these cards are charging extortionate APR rates and I'd really like to have them reduced!

I will provide any other details requested regarding my income and expenditure.. just ask

Thanks for listening

tomstickland

Move to 0% cards if possible.

Gonna_Do_It

Defo change to 0% credit card ASAP stop paying those extortionate rates!!

How much do you owe on the cards? Do you have a good credit rating - do you think you will be accepted for credit card easily?

Hope that helps xx

tomstickland

How much do you owe? How much can you pay off each month?

MarkG_4

I owe £2000 with Monument and £1650 with Citi..

I currently pay back £60 & £50 respectively, of which around £45 and £36 is interest alone

I can just afford to pay these, but money is a juggle every month and I am struggling more and more especially now I have had to cut my hours down at work due to an illness.

I also have a bank loan (Owe £4000) and a Car Loan (Owe £2000). These I am not too worried about, a catalogue (I know my partner didn't sign a credit agreement but she is too scared to question them) and an Argos card (£700) (I start paying this off in June, so I am going to try and have this paid off before then)

I currently have ok credit but don't want any more credit period, so I'm not worried about receiving a poor credit rating (which is a good think imo).

I have been burnt and learnt a lesson well here..

So how do I go about having the interest reduced? Write to them or phone them?

cmjohnson_86

Apply for a 0% credit card and transfer your balances over to the one and that way you'l save loads on interest which you can put forward to paying off your debts. You could also ask the bank for another loan to clear your credit card debts and then pay this each month, surely it'd be cheaper than paying offf your credit cards. WHy did you take these credit cards out in the first place with such high APR

jobbingmusician

Mark, I suggest you have a look through some other threads here. The advice is pretty standard, and would apply to you. Basically, the advice is

1. Have a look at your credit rating online - this costs about £2. There are 2 companies to do this with, and one is called Experian. If you do a search on Experian, you will find out all about this.

2. If your credit rating is decent, apply for a 0% credit card ( a new one). Some of these cards charge you 2% to move your CC outstanding balances to them - I think there are still some which do not, although I'm not sure. Then write to Monument and Citi to cancel your current cards (don't just cut them up, you want to hold not too many to help your credit rating). Keep on paying the payments, so that your balance actually reduces. When your interest free period ends, you get new cards if poss!!! (But keep an eye out when applying for your 0% cards. The ideal card you want is 0% for a long period on balance transfers, followed by a low rate for life of balance.)

3. If your Experian report looks total rubbish (but you haven't told us anything so far which would suggest it should do) then yes, it is worth a phone call to your current card providers. But I think that rather than asking for a lower rate because you can't afford it, you'll get a MUCH better deal by sounding richer. Tell them you are thinking of moving to another card which you've been offered and is a much better rate, and ask if they have a better rate to match it, as you'd like to be loyal

skintchick

And post your incomings and outgoings down to the penny and we'll see if we can find you any pain-free savings to get extra cash to throw at the debts.

MarkG_4

WHy did you take these credit cards out in the first place with such high APR

I suppose it was because it was SO easy to get them and I'd never had a credit card before. Like I said, I was burnt and learnt a valuable life-long lesson.

And post your incomings and outgoings down to the penny and we'll see if we can find you any pain-free savings to get extra cash to throw at the debts.

When I worked out what we earn and sped I worked out we should have approx £500pm spare.. but I never see this!

As from today (I was paid my wages today) I have put a chart on the fridge and every single penny spent is going to be marked down and what it was spent on. Hopefully I'll see where the money is being wasted and where we can save it.

My partner goes overboard at christmas and birthdays and I have told her this has to stop! (This christmas cost us about £3000) so I have an idea of what needs to be cut and where I can save the odd quid here and there. I just worry about these two cards as the APR is so high!