help plz lloyds have got me

winnie2007uk

hi all,my problem is i was offered a lloyds credit card 3 years ago,even though i didnt work and i snapped at it with 1 thousand on.
i have been paying £ 20 a month but nothing seems to be going on to it.so i went into the bank as they offered me an interest 3loan ,but then said i had ccjs so i was refused.then i asked how long will it take to pay my thousand off,the reply was 30 years and thats not including the 3 years ive already paid.they say that the 20 i give ,,18 goes to interest,can anyone plz help.thank you

Extant

Yes. You are making the minimum payment, or very close, every month.

If you make the minimum payment on a £1000 debt, you can be looking at up to 40 years to repay your debt.

CLAPTON

you need to make bigger payments each month... if you paid say 10 more each month the debt would be finished in 4 to 5 years

opinions4u

I think this article on the main site will help you.

Very simply, as others have suggested, pay as much over and above the minimum required payment as you can afford.

Depending on the rate you're being charged (I've assumed 17.9%) the following payments each month will achieve better results for you:

£20 a month = 7 years
£40 a month = 2 years 7 months
£80 a month = 1 year 3 month

Take control.

winnie2007uk

opinions4u wrote: »

I think this article on the main site will help you.

Very simply, as others have suggested, pay as much over and above the minimum required payment as you can afford.

Depending on the rate you're being charged (I've assumed 17.9%) the following payments each month will achieve better results for you:

£20 a month = 7 years
£40 a month = 2 years 7 months
£80 a month = 1 year 3 month

Take control.

thank you for your replys, but my problem is with the income im getting i can not afford the 20 a month at the moment,is there no other way
i have been told if i stop paying for a while they stop the interest

ShelfStacker_3

winnie2007uk wrote: »

i have been told if i stop paying for a while they stop the interest

Utter rubbish. If you stop paying, they MIGHT agree to stop interest, but they may well not and either way your credit rating would be utterly ruined in the process. Starting to miss payments is the worst thing you could possibly do.

Get over to the Debt Free Wannabe board and post a statement of affairs, and see what they can do for you.

noah271007

ShelfStacker wrote: »

Utter rubbish. If you stop paying, they MIGHT agree to stop interest, but they may well not and either way your credit rating would be utterly ruined in the process. Starting to miss payments is the worst thing you could possibly do.

Get over to the Debt Free Wannabe board and post a statement of affairs, and see what they can do for you.

I concur with Shelfstacker. I can imagine if you do ask for a freeze on interest payments, with the minimum payment, it is VERY LIKELY your credit file will be greatly affected. The lender usually use a status code in the payment history - AP (arrangement to pay) status on the payment history entry. This means you have an arrangement to continue paying minimum payments but without the interest or the lender agreed to give you a breather on not making payments for a short period. The lender will lose money this way and so it is their way of getting back at you to put a dent on your credit record. It is almost just as bad as missing payments.

They don't tell you this, as for many people who have an arrangement with their lender in making payments getting a nasty shock when they see AP status on their credit files! I would advise you to keep making the payments WITH interest and when you can afford it, put more money to reduce the debt. Whatever you do, don't use the card, cut it up. That way you can control your spending. Hope this helps.

Hope everyone is well, and that i am talking sense here.;)

Extant

winnie2007uk wrote: »

i have been told if i stop paying for a while they stop the interest

If you stop paying, you will start to rack up charges. Your debt will be sent to collections, and they might, if you're lucky, agree to freeze the interest temporarily - but they won't, unless they're the softest collections known to mankind, ever settle for £20 a month for a repayment plan. That's 50 months, over four years, for a £1,000 debt.

If you do this, your credit score will become useless pretty much instantly. Say good bye to ever getting another card, loan, and even stuff as simple as a contract mobile phone.

It is a terrible idea.

CLAPTON

Is this serious??

Several of you are saying the OP's credit rating will be affected if she stops paying the CC..

Now she's told us she already has CCJs.... will stop paying the CC make it worse?

Extant

CLAPTON wrote: »

Is this serious??

Several of you are saying the OP's credit rating will be affected if she stops paying the CC..

Now she's told us she already has CCJs.... will stop paying the CC make it worse?

Yes, potentially.

With a history of CCJs, you're way more likely to end up with your debt being marked deliquent and written off. Once you do that, even the bankrupt loving Barclays and Co-op won't touch you with a barge pole: you are riskiest of the riskiest.

flossy_splodge

winnie2007uk wrote: »

hi all,my problem is i was offered a lloyds credit card 3 years ago,even though i didnt work and i snapped at it with 1 thousand on.
i have been paying £ 20 a month but nothing seems to be going on to it.so i went into the bank as they offered me an interest 3loan ,but then said i had ccjs so i was refused.then i asked how long will it take to pay my thousand off,the reply was 30 years and thats not including the 3 years ive already paid.they say that the 20 i give ,,18 goes to interest,can anyone plz help.thank you

I'm really sorry if this sounds harsh but 'the bank have got you'???
NO - you got yourself.
If you go talk to them and see what transpires.
Ignoring stuff never works, it only frustrates everyone.
And perhaps think about the fact that a debt is a moraL obligation as well as a legal one.
I know several people who claim they can't meet their debts but BUT THEY ALL SMOKE?????????:eek: