very high interest

as220375

I know that this is my fault but I have had a number of credit card bills for years and now I am getting concerned. i am up to the limit on 2 out of the 3. I don't have a problem paying the bills each month - but last year (before I realised that I could reject this increase) one of the cards increased the interest to 34%. I am now paying off £250 a month and £245 is going back onto the card - therefore this is never going to be paid off. I cannot afford to pay any more than the minimum payment and have attempted to get new credit cards with 0% on balance transfers but have been declined by several. With the exception of a DMP, what options do I have here to help me reduce these cards each month. I am currently paying £500 per month on credit card bills and £400 is going back on in interest. At this rate I'll be about 10,000 years old when these are cleared.
Thanks you so much for any advice

karatedragon

What is the consequences of just not paying a credit card apart from getting a CCJ?

redpete

Make sure you are paying the minimum on all of them and then any excess you can afford pay off the one with the biggest interest rate. ("Snowballing")

as220375

not sure of the consequences of not paying one - extra late fees of £15, nasty letters and debts getting worse I suppose

redpete

karatedragon wrote: »

What is the consequences of just not paying a credit card apart from getting a CCJ?

You'll wreck your credit ratings meaning that you will not get (or might get if you are prepared to pay really high interest rates) new credit cards, loans, overdrafts, mortgages, mobile phone contracts, car HP; you'll get hassled by the lenders and debt collectors; you'll get more charges added. Apart from that it's no problem at all.

fozmcfc

I would suggest posting on the debt free wanabee board. Lots of people who have been/are in a similar situation, they can offer support and advice, who to contact etc and ideas on cutting spending, increasing income.

TBH, your debt is on credit cards, but the wider picture is the fact your are struggling to pay back your debt (payment minimums is struggling basically) and hopefully you are now raring to do something about it.

With the help of the site and its members many people have managed to turn around their finances, including me!!

Good Luck!!

michael1983l

You could ask for an APR decrease so that they can help you reduce your limit quicker.

JimmyTheWig

as220375 wrote: »

I cannot afford to pay any more than the minimum payment

Seriously, every pound over the minimum that you can afford to pay will really help you out in the long run.
Have another look at your finances. Post an SOA here. Think about ways to increase your income. Do whatever you can to pay it off as quickly as you can. Start (as has been said) by concentrating on the highest APR interest.

have attempted to get new credit cards with 0% on balance transfers but have been declined by several.
i am up to the limit on 2 out of the 3.

Not surprising you can't get any more cards if you can't afford any more than the minimum on what you already owe.
Can you do a balance transfer to the 1 card that is not at its limit? Would that be at a lower interest rate than the highest card?
If you do this, please remember... Don't let the reduced minimum payment mean that you pay less each month. Pay the same (if you can't afford more) and you'll pay off the debt much quicker.