Trapped with my credit card company

rze1979

I am reasonably new to posting on this site so hope this isn't a stupid thread but just wondered what advice ppl could offer......

I have as credit card with Virgin and have £4500 on the card, I had troubles last year and really ended up using it far more than I ever have before.
I want to swap to a new 0% card but have now been refused 2 card applications. My credit history was always pretty good but I only ever had about £1000 on a credit card before and I think I may have also had a late payment last yr.
Basically I can't get out of this Virgin card which is now costing me £62 a month interest so when I pay off £100/150 (what I try to pay each month) it means I am hardly actually paying anything off.
I don't know what to do - should I keep applying for cards and get a worse credit report??
I feel trapped - help :-(
Any advice greatfully received.

Verbatim

iI you've been refused twice it sounds as if you shouldn't apply for any more for a few months as you won't be accepted and will seem desperate. You could try posting on the dfw board for help with reducing other costs so you can reduce the virgin card faster.
Good luck.

chattychappy

A 0% deal might help you for a year, but do the maths. £4500 + 3% (fee) = £4635. A year of paying back, at say £125 will still leave you with £3135. Of course it's still an improvement though afterwards you might then be on an even higher rate than you are now.

Sounds like you really need a "life of balance" deal. Seems like you can't get any new cards right now. If you have other cards which you are not using, you should call them to see if they have any "deals" going. In particular I've found both Natwest and Barclaycard some times will make an offer when you call them, but won't otherwise promote a deal to you.

From the figures you give, it sounds like your current APR is around 18%. Whilst not great it's not punitive. Be on the look out should they increase the rate. If they do you should exercise your right to refuse the increase. It means you wouldn't be able to use the card anymore, but at least that would stop the interest spiraling out of control.