Getting out of debt plan

White_Spider

Age: 26
Salary: £37,000

Credit Card Debt: £2500
Family Debt: £3000

Basically, I cocked up a balance transfer (a HSBC one from my virgin as I did not do it within 60 days). Now I try to get another card and every time I get rejected. I have done everything I can to improve my credit score but to no avail.

Could it be that I now simply have access to too much credit? I have the following cars:

Virgin (limit 3k(
AMEX (limit 6k)
Egg (limit 3k)

I have recently opened a Santander account which gave me a 500 quid overdraft, is there anything else I can now do to try and stop paying so much interest on my credit cards?

Thanks so much,

Paul

Cazzr

Personally I would close the cards you don't use/need, and maybe look to reduce limit on the ones you do use so that new lenders see you don't have 'too much access to credit'. Can you whack up the overpayments to the credit card and get rid of it quick? How much do you currently pay to both debts?

beanielou

Pop up a SOA & we can see what we can do to help.

White_Spider

Hi Guys,

Just reduced AMEX to 1500 limit.

And have worked out what is actually going no because what I was typing earlier was not strictly accurate, so now, it is:

AMEX: 800 @ 19.9%
Egg: 1800 @ 7.9% (limit 2k)
HSBC Overdrawn: £1000 @19.9
Virgin: 1000 @ 20.1 %

I currently have a positive balance of 1200 quid in the Santander, I suppose I should use this to pay virgin straight away, which leaves me with £3600 to pay and then I can get rid of the Virgin card too, to reduce my access to credit.

Egg I assume should be left alone and until last, its quite cheap really, which leaves me with 2k that I would rather not be spending 20 percent interest on...

Beanielou, whats an SOA?

Tixy

Hi

Once option (depending on how much you can pay back each month as to whether it would be worth it) I would suggets you pay off the virgin card and then once you have had 2 nil statements come through phone up and ask what BT deals they have. They may well be prepared to offer you another 0% deal which you could consider using for one of the other debts.

A statement of affairs (SOA) is a detailed picture of your debts your income & expenditure - using this link - http://www.makesenseofcards.com/soacalc.html to see how best to clear your debts and also to see whether we can see any suggestions for saving money in your expenses.