Big credit card balance that wont budge!

eddiejee

Ive had a Abbey credit card for a long time. The balance is currently 9,500. About a year ago I had a reality check and started to pay off more than the minimum. I know pay £270 via direct debit, but between £220 and £250 is charged in interest. The bank wont decrease the interest, I cant find any other bank to transfer it too, I dont use the card, I have not missed a payment and I am not over the credit limit.
Does anyone have any ideas about how to reduce the payments?

webmasterpolo

Hi Eddie

Welcome to MSE.

When you say you "can't find any other bank to transfer to" what do you mean?
-have you made applications and been rejected?
-have you read the credit card BT page on this site: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

The simple option is to apply for the longest 0% deal available, then keep paying the most you can afford to put a dent in the balance. Then keep BT it to a new card when the 0% runs out.

If you cannot get credit for some reason, then you have a bigger problem. There might be better advice than this but you could try looking at http://uk.zopa.com/ZopaWeb/ and see if anyone there will lend to you. You might also benefit from adding it to your mortgage if you can as the rate will be lower, but you will need to pay the extra £200+ into your mortgage to clear it off otherwise your total interest over the full mortgage term will be bigger.

HTH

-Web

eddiejee

Thank you. I cant find a credit card that will take on the full amount or one that isnt affiliated with MBNA. I did apply for a credit card around Christmas, but it was rejected as I had a new store card. The credit card company said they needed to see payments going to the new store card before they accept me. Unfortunately the other day my bank rejected a personal loan...not due to bad credit rating , but because of their scoring system. Im not sure if I should appy for another credit card (to transfer) now as ive been rejected for a loan.

CannyJock

eddiejee wrote: »

Thank you. I cant find a credit card that will take on the full amount or one that isnt affiliated with MBNA. I did apply for a credit card around Christmas, but it was rejected as I had a new store card. The credit card company said they needed to see payments going to the new store card before they accept me. Unfortunately the other day my bank rejected a personal loan...not due to bad credit rating , but because of their scoring system. Im not sure if I should appy for another credit card (to transfer) now as ive been rejected for a loan.

Get a copy of your credit report and make sure there's nothing adverse there.

If I were you, I'd be applying for a new card every 3 months until the whole amount had been moved onto a 0% basis.

Critical that you don't don't miss any payments while trying to do this and continue to pay as much as possible, as often as possible to the highest APR debt while paying the minimums on the others.

jamesd

eddiejee, you don't need once balance transfer for the whole amount. If all you get is a £1,100 limit just do a transfer of the £1,000 or whatever you'll be allowed to transfer.

You can also consider 0% for purchases cards. No balance transfer fee to pay for these so they are cheaper but it'll take a little while to use the balance. Just put all possible spending on the purchase card and as you spend the money pay the same amount off the Abbey card so you don't accidentally increase your borrowing. As with the balance transfer there's no need to go for the whole £9,500, just use whatever you get.

pagelad

Have a go at getting a Sygma Silver or Flybe card, they seem to be handing them left right and center at the moment.

Even transferring some of the balance off to 0% is going to help you for a while

eddiejee

Thank you all. I'm feeling more positive now.