Credit card debt advice

sixfeetunder

Hi all,

I have a familiar story and have accumulated lots of debt over the last 13 years or so and, over the last year, have really been knuckling down to try and get them sorted. Here is my credit card debt:

Card 1 - 3,005.86 (limit 4000)
Card 2 - 6,569.08 (limit 7000)
Card 3 - 6,843.52 (limit 8000)
Card 4- 2,387.04 (limit 2600)
Card 5 - 4046.31 (limit 4200)

It's so overwhelming to see the figures sitting there like that, but there we are. Last year I moved lots of the debt to 0% interest cards but, with the exception of cards 1 and 4, they have all expired and I am paying interest on the amounts. The 0% terms on cards 1 & 4 themselves will expire within the next 2 months too.

My problem is that I can't get any more credit to move the balances to new 0% rate cards. I applied for some around 5/6 months ago and was declined, and again around a month ago with the same outcome. I have lowered the credit limits of each card as I have gone along, to ensure that I have little credit in my name as possible but am unsure as to where I can now go without simply just paying the interest for a while until I can again apply for credit. But when is this likely to be?

Would it be better to consolidate one or two of the cards into a loan? Would a bank be prepared (or trust me) to offer a loan on the basis that I will close down a credit card with the money?

Any help or advice would be much appreciated, thanks in advance.

psychopathbabble

Don't get a loan. Fill out a statement of affairs and post it on here, as I'm sure we can find areas for you to cut down on and start tackling your debts. I had debts of almost 13k last october, and it's down to just over 9k, it would have been even less but i've had to pay deposit for new flat etc.... this is the lowest my debt has been for about 3 years, and i've been in debt constantly since I was 18. Instead of waiting to be able to get more credit, look at reducing what you already have. if you are unable to get 0% credit, it is very unlikely anyone on here would recommend you get a consolidation loan.

link for statement of affairs http://www.makesenseofcards.com/soacalc.html

sixfeetunder

Ok, thank you.

I have actually cut down massively on my spending and, although there are always more ways to save money, my current most pressing concern is the cards accumulating interest, after a year in which I've worked very hard to pay them off (I've paid off roughly £7000 in 12-14 months).

Should I stick it out for a few months and just pay the interest - then reapply for a 0% card to transfer the balance when my credit will (hopefully) be better?

psychopathbabble

sixfeetunder wrote: »

Ok, thank you.

I have actually cut down massively on my spending and, although there are always more ways to save money, my current most pressing concern is the cards accumulating interest, after a year in which I've worked very hard to pay them off (I've paid off roughly £7000 in 12-14 months).

Should I stick it out for a few months and just pay the interest - then reapply for a 0% card to transfer the balance when my credit will (hopefully) be better?

That is what I would probably do, although I'm not in a position to get any 0% cards at the moment! Just don't forget that the more applications you make, the worse it looks and I'm not sure you would get a loan if you aren't getting cards (although someone may well correct me on this!). Well done on what you've paid off so far!

persian_star

I'm in the same boat, but sadly the banks just aren't in a place where they're giving new cards out like they used to, even if you have a good credit score (I have a brilliant score, but I've still been rejected). I know it's frustrating paying interest, but that doesn't mean it'll make your debt worse if you're savvy. Try putting all your debts into http://www.whatsthecost.com/snowball.aspx which will show you how long it will take you to repay everything even with interest, and give you a debt repayment schedule and tell you what to pay when to minimise that interest.

Good luck.

sixfeetunder

Many thanks - I cheated a bit by selling off lots of the stuff I'd actually got into debt over and using it to pay it off, but it's all money I suppose. Now I'm reliant on paying back what I can afford through my salary I very much doubt I'll manage to pay £7000 in the same time period, which is why paying the interest is so galling. But I got into this mess in the first place and will have to deal with the consequences.

I don't suppose anyone is aware of any sensible time limit within which I should wait before reapplying for more credit (specifically the 0% interest cards)?

sixfeetunder

Thanks persian_star, I'd not seen that site before and will take a look. Very helpful.

persian_star

I hope it does help. That and my spreadsheet are my lifeline. Sadly the only other thing you can do is be patient! I've had to accept that I'm just going to have to pay their interest and budget accordingly, but it hasn't stopped my determination to get out of debt, and I'm jolly well never going to let them have another penny of CC interest after this again! The only (slightly) good thing is each time you have interest going out, knowing that it's less than last time because you're repaying debt rather than adding to it

I normally budget to pay off the interest on the card as soon as they charge it to make it feel like it was only momentary and hasn't dented my repayment schedule. Doesn't make a huge difference financially but having nice round numbers that *I* have chosen for my card balance is a big boost of moral support.

And keep breathin' - that's the key!