Credit card debt help needed

camsoft

Hi I need some advise please regarding managing my credit card debts.

I've got £3000 on a Virgin credit card with an rate of 17.5% APR. I also have £1000 on a Barclay Card with a rate of 6% APR.

I'm currently paying the minimum amount on both cards because I can't afford to pay much more each month.

I worked out today that by paying the minimum amount each month on the Virgin card alone will take me 10 years and cost me around £6,000.

I can't get a balance transfer card because I've tried and always get refused as my credit rating is not amazing, to transfer the debts to a lower interest. And Barclay's will not up my credit limit so that I can transfer the Virgin debit across.

I really don't know what to do. I don't want to be trying to pay off £4000 till in 40!

It seems they have the perfect customer in me. I know I should not be in this position in the first place and I've learnt my lessons now, but I don't see why I should be penalised for the next 10 years!

All I want to do is clear my debts in an affordable way without paying £1,000's in interest.

Any advise would be appreciated.

DarkConvict

As you say your a perfect customer, it suits credit card companies as this is a key place they make there money, interest charges.

You could consider asking for a reduction in interest charges, they as a responsible lender should see you are not making much progress into the debt and as such a 6-12 month holiday would be welcomed. If they say no they may try to interest the interest rate but you can stop this - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

The other way is to pay more per month by upping income / reducing outgoings.

Upping income forum - http://forums.moneysavingexpert.com/forumdisplay.html?f=145

Reduce outgoings
Read the sticky and post an SOA in MSE format - http://forums.moneysavingexpert.com/showthread.html?t=107280