Credit card debt - Any ideas?

creditcardhelp

Hi Guys!

Long time reader of the forums, only the second post for me.

To sum things up for you – I am 34 years old and live at home with my parents. I have almost £10,000 in credit card debt over 5 different credit cards but I am currently in the process of tackling this debt head on.

My credit card debt is as follows:

Capital One Progress Card – Limit £800 Balance £700 APR 29.9%
Barclaycard Platinum Visa Card – Limit £2600 Balance £2,350 APR 19.9%
Barclaycard Premiership Football Card – Limit £2,450 Balance £2,300 APR 14.9%
Bank of Ireland Rugby Mastercard – Limit £3,000 Balance £2,850 APR 16.9%
Hilton Honors Visa Card – Limit £1,500 Balance £1,450 APR 14.9%

I have sent away for copies of my all credit reports and everything is spotless there – all zeros as far as the eye can see. I have never missed a payment to any credit card company in my life.

I should point out 2 things though – there are currently 42 searches recorded on my credit file (average 4 searches or so per month).

Also, I did go over my overdraft limit a couple of times with my current account with the Nationwide but when I checked this on my credit file there didn’t seem to be anything recorded against it – all zeros yet again.

So, therefore my question is as follows – Is there anything at all I can do to tackle my debt as quickly as I can? I know I have been a fool running up all this debt and I am totally ashamed of myself but I am determined to tackle this head on and never look back and "never" use a credit card again as long as I live. I have all my cards cut up and they will never be used again. But, as you can probably guess – my credit rating isn’t the best with all the searches I have done over the past year so applying for products probably will result in a decline.

Ideally I would prefer to consolidate my debt with a loan but have been turned down by my own bank and 1 or 2 others.

Any help or advice would be greatly appreciated. I will post a SOA on the Debt-Free Wannabee board too but thought I should also post on this section too as my debt is primarily tied up credit cards.

Thanks Guys!

creditcardhelp

CLAPTON

income?

why are there 42 searches ?

MFWannabe

You need to stop applying; that's a huge number of searches.
We can advise better once we see a full soa as we can see all incomings and outgoings. You are in a better financial situation as you live with your parents so you should have more disposable income to be able to throw at these debts to get rid of them asap. You need to put more towards the highest APR card and pay that off first then move on to the next highest apr and so on. once we see your full soa we will be able to advise where you can make cutbacks so you can put more towards paying your debts.
Well done for cutting up the cards; once you've cleared outstanding balances don't forget to close the account.

Fruball

Hi CreditCardHelp

I have decided to do the same thing today.. Start clearing up my finances :eek:

Its scary but probably not as scary as sticking our heads in the sand as we probably have been doing for too long

On one of my cards I am paying £50 a month interest :eek:

If i apply for a personal loan, which is for 5k (will pay off everything i owe)...over 3 years the monthly cost would be £150 and total interest over the 3 years would be £600 and the debts will be lessening... I am paying roughly £100 a month now with no end in sight.

I am wondering if this is my best approach so will be watching your thread with interest (no pun intended )

Good luck

YorkshireBoy

You're up to the hilt on all the cards*, so get ready for some "we're increasing your interest rate" letters.

Be sure to read them very carefully, because you need to exercise your right to 'opt-out' of these increases...otherwise you're heading for circa 24.9% APR!

Do you work?
Income (£)?
Any other debts?
Can anyone in the family BT some of your debt to them?
Can you earn more/spend less?
Are all the searches for credit cards/loans, or are some of them ID only, ie unrecorded searches?


* That'll be the main reason I feel for the rejections.

creditcardhelp

CLAPTON wrote: »

income?

why are there 42 searches ?

Hi CLAPTON,

Thank you for your reply. My net income would be £1,300 per month. I will put up more details when I complete my SOA.

The 42 searches are a combination of applications for credit cards and loans spaced out over the past year. My latest applications were 4 searches last month trying to get a consolidation loan. No luck though.

Many thanks for taking the time to read my post and replying - it is very much appreciated.

FREEZ wrote: »

You need to stop applying; that's a huge number of searches.
We can advise better once we see a full soa as we can see all incomings and outgoings. You are in a better financial situation as you live with your parents so you should have more disposable income to be able to throw at these debts to get rid of them asap. You need to put more towards the highest APR card and pay that off first then move on to the next highest apr and so on. once we see your full soa we will be able to advise where you can make cutbacks so you can put more towards paying your debts.
Well done for cutting up the cards; once you've cleared outstanding balances don't forget to close the account.

Hi Freez,

Thank you for your reply.

I can't believe how many searches I have accumulated myself - really ashamed of myself and totally devastated at how I let this debt spiral out of control. But, I have finally come to my senses and it is time for the debt to go.

I will post a SOA shortly and hopefully it will paint a better picture of what is happening.

Thank you again. I appreciate any help or advice I can get with this.

Frugal wrote: »

Hi CreditCardHelp

I have decided to do the same thing today.. Start clearing up my finances :eek:

Its scary but probably not as scary as sticking our heads in the sand as we probably have been doing for too long

On one of my cards I am paying £50 a month interest :eek:

If i apply for a personal loan, which is for 5k (will pay off everything i owe)...over 3 years the monthly cost would be £150 and total interest over the 3 years would be £600 and the debts will be lessening... I am paying roughly £100 a month now with no end in sight.

I am wondering if this is my best approach so will be watching your thread with interest (no pun intended )

Good luck

Hi Frugal,

Thank you for replying to my post.

It is very scary indeed tackling this debt - I am so ashamed of myself and am determined to put things right as soon as I can. One of my cards I am paying £40 interest per month on too - complete nightmare!

But, I have looked at an article on snowballing - basically paying as much off the top APR card first. There is a calculator on the internet that works everything out for you - you put in how much money you have to put against your debts and it advises you shows you how much you will need to pay each month until the balances are at 0. Makes interesting reading. I may have to go down this route because I have zero chance of getting a consolidation loan I think.

Great to hear from you Frugal and I wish you all the very best with clearing your finances! Will probably pop by to visit your posts too to see if we can share ideas or help each other along the way.

YorkshireBoy wrote: »

You're up to the hilt on all the cards*, so get ready for some "we're increasing your interest rate" letters.

Be sure to read them very carefully, because you need to exercise your right to 'opt-out' of these increases...otherwise you're heading for circa 24.9% APR!

Do you work?
Income (£)?
Any other debts?
Can anyone in the family BT some of your debt to them?
Can you earn more/spend less?
Are all the searches for credit cards/loans, or are some of them ID only, ie unrecorded searches?


* That'll be the main reason I feel for the rejections.

Hi Yorkshireboy,

Thank you for taking the time to read my post - I probably don't deserve all the help on here but I am hoping to redeem myself by working hard to pay off these cards.

I do work full time yes - I work in finance for my local health authority.

My income would be £1,300 net per month

Other debts - yes, I am sorry - I should have included my overdraft with Nationwide. It is £1,700 and currently at £1,500. I pay around £20 per month to use my overdraft facility.

Unfortunately none of my family members have credit cards to transfer but I guess I could approach them for a lend of money maybe? Never even thought of that.

All the searches unforunately are for credit cards/loans. I tried to keep it at around 4 searches per month but I now understand that this is too many and I have put a stop to applying for any products for now.

I am spending less now - I don't go out as often as I used to. Unfortunately I am unable to earn more as my contract is fixed. My only hope would be a promotion which I am always keeping an eye out for.

Many thanks once again for your post Yorkshireboy - I am very thankful and I am writing down every piece of advice I am getting from you guys on this wonderful website.

Thanks to you all again. I am working on the SOA and I will post it sometime this evening - taking a bit longer than I thought to fill out.

Your help is very much appreciated. I feel so low at the moment but I am ready to knuckle down and get this job done.

dancingfairy

Any expenses you can cut down on - any expensive phone contracts that can be downgraded/cancelled, any unussed gym membership, magazine subscriptions, sky etc that can go?
It also might be worth having a clear out and ebaying/car booting to get your debt busting off to a flying start.
I think your first target after paying the minimums on everything should be Capital One as it has the highest interest rate and the smallest balance.

Good Luck
df

creditcardhelp

dancingfairy wrote: »

Any expenses you can cut down on - any expensive phone contracts that can be downgraded/cancelled, any unussed gym membership, magazine subscriptions, sky etc that can go?
It also might be worth having a clear out and ebaying/car booting to get your debt busting off to a flying start.
I think your first target after paying the minimums on everything should be Capital One as it has the highest interest rate and the smallest balance.

Good Luck
df

Hi dancingfairy,

Thank you for your reply.

I am currently looking at reducing the cost of my Income Protection Insurance policy. I have a separate policy with a company but they charge me £17.68 per month for only £400 per month of cover for accident, critical illness and loss of employment.

It is a nice safety net to have but I am contemplating whether to get rid of this or even better find a cheaper alternative.

My phone contract is pay as you go and I have no subscriptions at all.

Ebaying some items is a great idea though - I will definitely have a look at that.

Fully agree with you also on the Capital One card. 29.9% is shocking isn't it? But, then again - I signed up for it. Lol. I was responsible at the beginning paying it off in full each month but before I knew it - £700. So, I have to put an end to this credit card maxing and get my finances in check pronto.

Thank you for all your advice dancingfairy - it is very helpful and much appreciated.

creditcardhelp

creditcardhelp

Hello again Guys!

Here is my SOA - I hope I have everything filled out ok as I am totally new to all this. Any feedback would be greatly appreciated.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 20
Clothing................................ 20
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 26.25
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 17.68
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 313.93


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Cap One Progress CC............700.......13........29.9
Barclaycard Platinum...........2600......60........19.9
Barclaycard Football...........2300......45........14.9
Hilton Honors..................1450......45........14.9
Bank of Ireland................2850......75........16.9
Total unsecured debts..........9900......238.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 313.93
Available for debt repayments........... 986.07
Monthly UNsecured debt repayments....... 238
Amount left after debt repayments....... 748.07

Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,900
Net Assets.............................. -4,900

creditcardhelp

creditcardhelp wrote: »

Hello again Guys!

Here is my SOA - I hope I have everything filled out ok as I am totally new to all this. Any feedback would be greatly appreciated.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 20
Clothing................................ 20
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 26.25
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 17.68
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 313.93


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Cap One Progress CC............700.......13........29.9
Barclaycard Platinum...........2600......60........19.9
Barclaycard Football...........2300......45........14.9
Hilton Honors..................1450......45........14.9
Bank of Ireland................2850......75........16.9
Total unsecured debts..........9900......238.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 313.93
Available for debt repayments........... 986.07
Monthly UNsecured debt repayments....... 238
Amount left after debt repayments....... 748.07

Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,900
Net Assets.............................. -4,900

Sorry Guys!

I knew I left some things out.

Entertainment I would spend probably £50 per night out and I now only head out maybe twice a month so £100 a month there.

I also pay approx £20 per month to use my overdraft facility with the Nationwide - my overdraft is at £1,700 and is currently at £1,500.

Apologies for this as I am new to the site. I can complete a new SOA if required?

Many thanks,

creditcardhelp

YorkshireBoy

dancingfairy wrote: »

I think your first target after paying the minimums on everything...

Just on that point, now that many (most?) lenders are reporting minimum payment markers to the CRAs I'd strongly advise paying a little (even an extra pound) extra to remove the "I'm really struggling with my debt" flags from your credit report.