Credit Card Interest

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I have a Virgin Credit card which has reached its limit of £5,500. I dont use the card anymore and have standard monthly rates of interest on card purchases of 1.87% and Cash of £2.27%. Last month my minimum repayment was £129.04 of which £112.04 was interest!! I see from my statement that next months interest is estimated to be £99.80. This is the only card or debt I have, my only other debts are standard debts such as mortgage, and monthly bills which are all covered by direct debits. I so want to get this card sorted out. As it is an MNBA card I dont have the option of moving my balance to better deal within that group. Can anyone help!! I would like to get a better deal and set up a direct debit so I can forget about the card and feel that at least I wasn't just paying off the interest and that I was making a hole in the debt even if it took me 5 years! I cant afford to pay it off all in one year, the most I could pay monthly would be £120. Please dont blind me with jargon just give me straightforward much needed advice!!

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  • stephane_2
    stephane_2 Posts: 3,076 Forumite
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    Getting a better deal will all depends on what sort of income you're on...your best bet would be to try to get a card which offer a low interest on balance transfer for the life of the balance like Barclaycard who sometimes has some offer like that at 6.9% but now it is a matter if a lender would be prepare to give you another £6000 to transfer the debt, unfortunately there are no miracle solution here so unless you can get another credit card with either a 0% interest for 15 to 16 months or a card with low interest then am afraid you're stuck with Virgin
  • Are there any other options that I could try like moving some of the debt to a card with O% on BTs so that Im not paying a whooping amount of interest? Im just not really clued in when it comes to interest rates and best deals etc. I used the calculator on the site to see how long it would take me to pay off my virgin card and it told me "i'd be dead before it cleared"!!!! which made me laugh but also showed me how much interest must accumulate month by month. This is really bothering me so any assistance no matter what would be appreciated.
  • Fiddlestick
    Fiddlestick Posts: 2,339 Forumite
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    Are there any other options that I could try like moving some of the debt to a card with O% on BTs so that Im not paying a whooping amount of interest? Im just not really clued in when it comes to interest rates and best deals etc. I used the calculator on the site to see how long it would take me to pay off my virgin card and it told me "i'd be dead before it cleared"!!!! which made me laugh but also showed me how much interest must accumulate month by month. This is really bothering me so any assistance no matter what would be appreciated.

    How much more than the minimum payment can you afford to make each month?
  • chexum
    chexum Posts: 546 Forumite
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    I would like to get a better deal and set up a direct debit so I can forget about the card and feel that at least I wasn't just paying off the interest and that I was making a hole in the debt even if it took me 5 years! I cant afford to pay it off all in one year, the most I could pay monthly would be £120. Please dont blind me with jargon just give me straightforward much needed advice!!

    Whatever you do, don't make it a minimum payment by direct debit. All that does is prolong the time you'll be paying interests. Ask them to make a monthly set amount, but be sure to check the statements if they increase the rates. If you pay £129 this month, keep paying that much, even in a year you'll be paying more of the capital, and less interest. What's better, divert as much payment to them as you can. Just moving to £150 (from £120) will shave off years! until the debt is gone (as the same calculator will show).

    You may want to try the Sygma family of cards (Flybe, Silver, Creation), they may have quite long 0% BT periods (especially the Creation, but it needs a higher income), and they are somewhat more lenient in accepting applications.

    Even if you do this, never go below the chosen monthly payment (divided between cards if necessary, as a BT will need a minimum one, if you can't transfer all of it).
    Enjoy the silence...
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    chexum wrote: »
    You may want to try the Sygma family of cards
    Don't they have a 3% minimum payment requirement though?

    3% of £5,500 is £165, ie over the OP's budget of £120 by some £45 per month.
  • chexum
    chexum Posts: 546 Forumite
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    Don't they have a 3% minimum payment requirement though?

    3% of £5,500 is £165, ie over the OP's budget of £120 by some £45 per month.

    Good point - and the upfront fee as well - but if they don't give the full £5,500, then it may fit the budget, but it will be very strict. In that light, BT would not be a bright idea just now.

    Another thing to know if the OP is still using the card, as in that case it would indeed be very difficult to pay it all off.
    Enjoy the silence...
  • jerry_philip
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    It depends on the card company how much they will give it to you.
  • stephane_2
    stephane_2 Posts: 3,076 Forumite
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    It depends on the card company how much they will give it to you.

    No it is not....it's your personal circumstances
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