Best way to clear CC debt

dnutt68

GeorgeUK wrote: »

34.95% for virgin i get

2.5292% as a number = 0.025292
add 1 = 1.025292
1.025292^12 (to the power of 12 for 12 months) = 1.349494
subtract the 1 = 0.349494
as a percentage = 34.9494 (34.95%)

You need to get this reduced asap!!

Have you looked at your credit report? You can do so free at experian (if you cancel within 30 days). This will show you what accounts you have had in the past 6 years as well as what credit checks you have had. Look to see how many you have had in the last 6 months. Also make sure you are listed as being on the electoral roll at your current address. If you are not, do not apply for any credit until this has been updated.

Rent.................................... 120
Are you living with your folks? You aren't paying any bills or insurance, so thought i'd check.

Groceries etc. ......................... 120
How many is this for? If just you, this can be reduced. Have a look at the old style board for meal plans.

Also worth taking a look at the snowball calculator to see the best order to pay things off on and also to see how much interest you are paying and could save.
www.whatsthecost.com/snowball.aspx

Edit: If you have only had 1 credit check in the past 6 months, i think you should definately try to get another 0% card. Even then, you should be contacting virgin to see if they can reduce the interest rate. Don't close the card if you do manage to vlear it though - there are a few balance transfer tricks you may be able to use later that will reduce the interest you are paying by even more.

Ok, I'll contact Virgin and work on getting the credit reports sorted at work tomorrow. Do you think it's worth holding fire with appying for a 0% card until I've got the credit reports?

Thanks

DN

Edit: Missed a couple of points

Ye I'm living with my dad. We lost my mum shortly after I seperated with my ex. So it was support for him and cheap digs for me. I think i'd have gone under long ago if I'd have had to rent or buy.

The food bill is mine, it does incude a tenner a week for a few bottles of real ale. Am working on reducing it, its half what it was a few months ago, which I'm pleased with. I'll check out the meal ideas thread though,

Thanks again, am feeling more optimistic already just sharing it with people who know what debt feels like.

GeorgeUK

You can get the experian report online - they just need to confirm your identity with a card.

I would definately wait to see if you are listed as being on the electoral roll or not and make sure the address is correct. Small errors like that could have a big impact on your score (not worth paying to see these as different companies have different criteria when working out the credit score)

dnutt68

Hi again,

Ok I did the experion credit report and it all seems ok. The electoral role data is correct and all the credit accounts I have, or have had, are marked as satisfactory with no red marks against them for late payments etc.

I rang Virgin to enquire about why I was getting charged 34% apr and the possibility of getting it reduced. I was told that was the set rate and no, it could not be reduced. What a nice unhelpful bunch they seem to be!!

So, I decided to try and apply for a 0% credit card with the Halifax, I did the online application, but it was immediately declined due to my credit score

So I don't seem to be having much luck at all.

However on a brighter note I had a bit of a brainwave. Many years ago I had a Natwest Mastercard, never used it but never cancelled it either. So I dug around in an old wallet and found the original card. I went onto my Natwest online banking account and used the Add Credit Card option to see if it was still active. Indeed it is, with a £2100 credit limit at 16.9% apr.

So I guess my next move would be to contact Natwest and transfer as much as I can from the Virgin Card to the Natwest one? Additionally there is approximately £600 unused on my Eggg card, so I could transfer more there. The Egg card reverts to normal rates in January, but again this seems to be at 16.9% rather than the 34% Virgin are charging.

GeorgeUK

For the Natwest card, phone up Natwest to enquire what the credit limit and interest rate is (I know we know what it is, but we need a tame excuse to contact them). After they confirm the rate, ask if they have any balance transfer deals on right now. You may get offered 0% for 6 months or a low interest for life of balance deal.

I wouldn't do any more card applications for a few months though.

dnutt68

Another plan bites the dust. :mad:

I have just spoke to Natwest regarding the Credit Card, and was informed that the card expired in 2003 so I'd have to re-apply for a new card either in branch or online.

There doesn't seem to be much point in doing this as I would no doubt be turned down as I was with the Halifax?

Looks like I'm stuck with throwing money at Virgin then. I might as well be setting fire to it for all the effect it has. This is so annoying

GeorgeUK

I would wait a few months before trying for another creditcard. I agree that it is not a good situation, but you may still be able to get something from the egg card. Have a read of the promotional material they send as well as the T&C. I don't have this card, but i think you can get 0% offers on the card anniversary. Does this ring any bells?

If you don't know when the 0% offer is ending on this, you may be able to ask about that when you phone them.

Other than that, i think you need to bite the bullet and resign yourself to paying an obscene amount of interest for now. It seems the government are hoping to try to put pressure on banks to lower card rates but the banks will probably just ignore them as usual.
http://news.bbc.co.uk/1/hi/business/7749498.stm

dnutt68

GeorgeUK wrote: »

I would wait a few months before trying for another creditcard. I agree that it is not a good situation, but you may still be able to get something from the egg card. Have a read of the promotional material they send as well as the T&C. I don't have this card, but i think you can get 0% offers on the card anniversary. Does this ring any bells?

If you don't know when the 0% offer is ending on this, you may be able to ask about that when you phone them.

Other than that, i think you need to bite the bullet and resign yourself to paying an obscene amount of interest for now. It seems the government are hoping to try to put pressure on banks to lower card rates but the banks will probably just ignore them as usual.
http://news.bbc.co.uk/1/hi/business/7749498.stm

Ye I noticed the Anniversary offer with Egg. I got the card in Feb this year, so this part applies to me.

"For applications made after 1 January 2008, you'll get our 0% offer again for up to five months on balances transferred in the anniversary month in 2010 and 2011. "

So It'll be 14 months before I am eligible for this. I'll transfer what I can onto the Egg card (approx £500) for now, at least it should bring down the Virgin payment a little, and just soldier on as is whilst trying to cut back on my spending as much as possible.

Thanks for the help / suggestions. Tis appreciated :beer:

GeorgeUK

One more thing - as there are 3 credit reference agencies, it may be worthwhile getting your credit report from all 3 so that you know the details on them are all correct and showing you as being on the electoral roll at that address. You can get a copy of the credit report for £2 each through the post or you may be able to get them free online for a trial period.
http://www.moneysavingexpert.com/banking/credit-rating-credit-score#your

Did Halifax actually say why your application had been declined?

dnutt68

Ok thanks, I'll check the other reports just in case.

The Halifax rejection didn't really say much. Just that they used Credit Reports to assess applications and that at this time they were unable to accept the application I had made.

GeorgeUK

I'd give Halifax a buzz to see if they can tell you. It might help to know if there is conflicting information on your reports or something you are not aware of. Who knows, they may even reconsider.