Moving from 0% to 20 something % - Help please

eloma

I have two credit cards that are coming out of the preferential 0% interest rate. One of them towards the end of the month and worth 10K. The other one is moving to standard rate in a couple of months.

I have a job paying well and that is not under threat.

I am trying to clear off these loans over a 12-18 month period. Recently with my tracker rate, my mortgage payment has gone unbelievably low.

I tried 8-10 credit cards and personal loans and have had all of them declined. Well some of them did offer a very high interest rate.

I can afford to pay off the loans monthly including overpayments which I plan. The excessive interest will burden me badly

I am not sure whether personal loan is best or another zero rate credit card. I am not sure if it is worth going to companies like Yes or Freedom Finance or the likes if the regular lenders are declining my application.

Desperately need advice or suggestion to get my finance straight.

Warm Regards

Sunil

withnell

If you've been declined for 8 products, then your chances of getting a 0% card are slim - hold back on the applications and try again in a few months

firesidemaid

ring the card providers and ask if they will the reduce the rates - say they are too much.

use the money you are saving on your mortgage to pay the interest.

not a first choice, but could you add any of the debt to your low rate mortgage - you would have to be disciplined.

again, if you have applied for and been declined for lots of cards (why i wonder) then your credit rating needs looking at.

Robert_Sterling_3

Try to earn more and spend less.

Swans1912

You may have already done the short term damage to your credit report due to the mass application for credit.

It is VERY unlikely that you will be offered a good credit deal with 8+ applications in all within a short amount of time. DO not apply for anything else and start your plan to pay off as much debt as you can. Also do speak to your credit crd provider and ask for a lower rate... they don't have to but they might.

Moggles_2

As above, it would be sensible to leave applications for cards/loans well alone for a bit.

Meanwhile, for tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Have you checked your credit reports lately? If you use the links on page 1 of the *How to obtain credit reports* sticky, you'll be able to see at first hand the data UK lenders search, when you apply for credit cards/loans. Experian sends explanatory notes which are a good read as well. Worth doing, IMO. Mistakes happen.

The above approach takes a liitle more effort than firing off credit card applications but, IMO, is more likely to get results.

sdooley

If you can put £1,000 per month towards the £10,000 one you will repay in a year, even at the high rates. Does that sound feasible, in addition to the minimum payments on the second card?

Borrowing more might not be the answer. A secondary lender may offer you a slightly lower rate but you won't have the flexibility to pay your debts off quickly and in any event without changes to your budgeting you may not clear the balance. They could lock you in to debt for years and if you have emergencies you'll be tempted to run up the cards again. It sounds like the banks are looking at your credit and seeing you are stretched. Do you have any savings or investments to cash in to pay down debt?

Moggles_2

You may be able to reduce your costs using credit cards you already hold. For details, see Martin's *Credit Card Shuffle* article.;)

http://www.moneysavingexpert.com/car...-card-interest

eloma

Thank you all for responding. Very heartening to know that some of you actually took the trouble to read and take the time to advice. I have taken all the comments on board and will be studying the links later this evening .. I will work through some of the pointers but was so overwhelmed, I had to pen a thank you note. This debt is like a knife hanging over my head and I desperately want to be debt free.

And Robert, I very much agree with you.. that is the soundest advice that anyone can give. I find myself in such a situation because I loaned money (£25K) to a close relative who wanted to set up a franchise, lost my revenues for a good part of last year because of a broken leg and was forced to do home improvement as our extension was not in good condition when we bought and it started leaking and had to be rebuilt. All of this happened at around the same time and hence my cash flow issues. I have tried very very hard to create a second income and not suceeded so far.. Am still evaluating genuine income opportunities.

Wishing all of us good luck in these hard times....