Advice needed to help clear credit card and overdraft please.

YorkshireBoy

michael1983l wrote: »

I take it you missed the part where I said "if I was in your position I would"

No I saw it.

You're suggesting someone with debts approaches their creditors and tells them he's struggling because he's been out of work and is now in a "very low paid job".

Guess what follows next? That's right, internal credit rating is downgraded and the "we're increasing your interest rate" letter is posted out.

Let's hope the OP considers all the other advice before following yours.

michael1983l

stephane wrote: »

So if you suggest that he/she contact lender to reduce interest what is your argument for not trying to take a credit card with a 0% offer and has Yorshireboy suggested the debt would be repaid quite smoothly over time without having anything damaging on his credit report....contacting lenders should be last resort as many will refuse if account is not defaulted and many try to increase further interest as a result....

Taking another credit card is taking further lending, there is a good chance for the reasons I have stated above that the OP will resue their credit. everyone starts off with the best intentions of paying their debts however with the cost of living increasing all the time I would say the risk is significant that the OP would use their credit again when times are tight.

You all have your opinion and I have mine, what I have stated is what I would do. If the OP is very self controlled and their budget isn't as tight as it is made out then yes I'd agree that BT is the best route. I am just not confident in this case that is how it is. Maybe if the OP can provide some more information we could give more accurate advice.

total income

Total expenditure before luxuries/social money

disposable income


If we knew that then maybe our opinions would be different. Nobodys opinion is right or wrong here.

YorkshireBoy

michael1983l wrote: »

13 x payments of £50 for CC = £650 paid off a £1500 balance

O/D = £650 off a balance of £1000. plus interest will probably be closer to £500 paid off with interest.

The OP would still owe £1350 by my maths.

If he gets the Egg Card, with a sufficient limit, there is no overdraft debit interest to pay for 13 months, so I'm not sure what your point is?

I would like the OP to confirm the current balance on the card though.

michael1983l

YorkshireBoy wrote: »

If he gets the Egg Card, with a sufficient limit, there is no overdraft debit interest to pay for 13 months, so I'm not sure what your point is?

I would like the OP to confirm the current balance on the card though.

they have said it is £1500 and have paid £500 pounds off in the past meaning it was originally £2000. I read it as anyway.

You also assume that the new card they get will have a £2.5k limit to BT the lot, I would suggest with a low income high outgoings that the case is more likely to be a low limit e.g. £1000 or no card at all.

I understand why you are saying what you are saying, I just think we are seeing what the OP says differently. I see it as they are streched to the limit and have £2500 debt. I think you see it as 2k debt and that they are coping fine and can afford more credit. Clarification from the OP would help us understand who is closer to the truth better.