Unemployed, frustrated with credit card interest

IMB

Hoping I can get a bit of advice on how to proceed with this.

I am currently paying off my credit card balance to HSBC. I'm on long-term sickness benefits, so my monthly funds aren't huge. The card itself has been cancelled, so I can't make any outgoing payments with it (there haven't been any for well over a year now), I'm just paying the balance off. I now owe £3,300. I'm currently in the position of paying off a fixed rate of £80 a month (which is on a standing order at £20 a week as that's a more sensible way for me to spread the payment), with the APR now at 20.9%. I'm paying above the minimum repayment now, so I guess at least that's positive. I've recently had an outgoing payment cease clearing up another £20 a month, and am planning on putting that towards paying off the credit card, too. Actually meeting the payment requirements isn't a problem. The problem is the interest I'm being charged.

My interest payments each month are now creeping up again. It was £52 this month, and it's going to be £61 next month. I don't understand why this is the case when there are no outgoings, beyond 'they want to screw you for as much money as they can, and they're a bank and can do whatever they like'. I'm starting to worry that I'm going to end up in a position where my monthly payments aren't going to cover the monthly interest. I have made arrangements in the past to have the interest frozen and then reduced when that ran out. That helped, and I got a nice chunk paid off. However, they've said they won't do that again.

I am on long-term sickness benefits due to severe depression and anxiety and illnesses that cause severe fatigue. This anxiety makes it very difficult for me to phone HSBC's credit card section as I get very nervous and upset. It's also compounded by the fact HSBC use Indian call centres, and I can't understand what they're saying half the time, especially as I get more upset. I've tried seeing someone in my local branch, and they basically refused to help or advise me, stating that they didn't deal with credit cards.

So after that rambling, it boils down to this: is there anything practical I can do to get this paid off sanely and stop this ridiculous interest? As I am unemployed, I recognise that my options are limited, and that I may well be stuck with HSBC and their annoying interest charges, but I don't think it hurts to ask if there are any useful loan options, or credit card transfer options (though I understand they like to screw unemployed people with this).

Failing that, is there anything I can do with HSBC (short of nuking them from orbit)? Am I within my rights to demand to be put through to someone in the UK? Can anyone provide me with a list of things to ask/expect/demand from them that I can stick to in order to work around my anxiety? That is the stumbling block, and I don't have anyone else who can phone on my behalf.

Any help is appreciated. Thank you.

fluffymovie

Hi there

I am not an expert on Credit cards myself but would say that as you are on benefits and can't afford your outgoings, I would suggest that you contact your Local Citizens Advice Bureau. They may be able to speak to HSBC themselves with you there.

I am also an HSBC customer and it is really hard to understand what the call centre staff are saying so I am with you there.

Hope it works out for you in the end

alyxzandra

On some of my credit cards I've been able to negotiate a lower rate of interest. I did this with two of my Halifax cards and now only pay 5.9% interest on one of them. Ask them if you can get a lower rate of interest. Also, my 0% interest ran out with Virgin, but I received a letter saying if I agree not to use the credit card they will continue to offer 0% interest for the life of the balance. Maybe that is another option to seek out with your credit cards?

cos_2

I totally understand your nervousness - believe me!

As said by Fluffie up there ^ speak with CAB or your local trading standards people. These folk are great at both working out your financial situation and also speaking with creditors. They are friendly people and you'll benefit greatly from speaking with them, I'm sure.

Good luck