Good credit rating card tart problems!

DALIDOG

I hope someone can help me out here....I am a card tart with a good credit rating, and no missed payments on my credit cards. For some of my cards, I pay a fixed amount each month that is more than the minimum required.

I have been sorting out my finances recently and have two MBNA cards that are not on 0%. My Virgin card is on a monthly rate of 1.8053%, and my A&L one is 2.5292%. I have around £8k on the Virgin card and £5k on the A&L one. Foolish, I know, to let these debts build up, but I am now trying to remedy the situation.

Worth mentioning that I also have 3 other cards with the most recommended lenders that are either on or about to come off 0%. I've racked up a fair amount in total, so really need to address the problem where the interest rates are higher.

Reading the recommendations on here, I should be looking to do a balance transfer rather than get a loan. However, I've just tried to apply for the Halifax card, and been declined. I have also received letters from my existing MBNA cards notifying me that they are decreasing my credit limit. I have previously been declined cards and suspect this is to do with the fact that my activity is clearly "tarting" activity. I fear my tarting days may be over!!

Can anyone make any recommendations on how best to clear the highest interest rate debts? I don't want to make too many applications in case this affects my credit rating. I am a high earner, and my credit rating is very good.

Many thanks to anyone who can offer advice!

BugsyBrowne

DALIDOG wrote: »

I hope someone can help me out here....I am a card tart with a good credit rating, and no missed payments on my credit cards. For some of my cards, I pay a fixed amount each month that is more than the minimum required.

I have been sorting out my finances recently and have two MBNA cards that are not on 0%. My Virgin card is on a monthly rate of 1.8053%, and my A&L one is 2.5292%. I have around £8k on the Virgin card and £5k on the A&L one. Foolish, I know, to let these debts build up, but I am now trying to remedy the situation.

Worth mentioning that I also have 3 other cards with the most recommended lenders that are either on or about to come off 0%. I've racked up a fair amount in total, so really need to address the problem where the interest rates are higher.

Reading the recommendations on here, I should be looking to do a balance transfer rather than get a loan. However, I've just tried to apply for the Halifax card, and been declined. I have also received letters from my existing MBNA cards notifying me that they are decreasing my credit limit. I have previously been declined cards and suspect this is to do with the fact that my activity is clearly "tarting" activity. I fear my tarting days may be over!!

Can anyone make any recommendations on how best to clear the highest interest rate debts? I don't want to make too many applications in case this affects my credit rating. I am a high earner, and my credit rating is very good.

Many thanks to anyone who can offer advice!

You have just been turned down for credit so your credit rating can't be as good as you say.

KingElvis

You've probably been turned down due to a debt to income ratio.

Expect your other lenders to start decreasing your limits if you rack up loads of searches for additional credit.

I would go over to the Debt Free board, loads of help on there.

Elvis

redpete

First advice is to stop fooling yourself that you are a 'card tart' making the most of 0% deals. It seems that you are actually spending more than you can afford on an ongoing basis and have been lucky thus far to put the debt onto low interest cards. Card tarting is normally recommended for someone to make better use of the 'free' money in the short term (e.g. putting it into higher rate savings or into a mortgage overpayment fund) where you can access that cash when the 0% deal comes to an end; it is certainly not suitable for continued spending when you already have unsupportable debt.

As you have found the 0% money-go-round is coming to an end. It will also be difficult to find an afforadable loan to pay off these debts when they start to incur high rates. You need to look at how to spend less, earn more and/or look into what you might be able to do to cope with not being able to afford repayments.

I suggest going to the DFW board for advice.

stephane_2

You have already 13k of debt on just 2 cards....what is your debt total with the other credit cards.
Without knowing your total debt level and annual income it is difficult to say but that could be the reason....

foundationsmcr

stephane wrote: »

You have already 13k of debt on just 2 cards....what is your debt total with the other credit cards.
Without knowing your total debt level and annual income it is difficult to say but that could be the reason....

I agree with this. High earner or not, I'd be worried if I had £13K debt on a credit card without the means to pay it off within 12 months. From the info provided I'd say you appear to be living beyond your means and in denial. Apologies if that appears blunt.

BugsyBrowne

DALIDOG wrote: »

I hope someone can help me out here....I am a card tart with a good credit rating, and no missed payments on my credit cards. For some of my cards, I pay a fixed amount each month that is more than the minimum required.

I have been sorting out my finances recently and have two MBNA cards that are not on 0%. My Virgin card is on a monthly rate of 1.8053%, and my A&L one is 2.5292%. I have around £8k on the Virgin card and £5k on the A&L one. Foolish, I know, to let these debts build up, but I am now trying to remedy the situation.

Worth mentioning that I also have 3 other cards with the most recommended lenders that are either on or about to come off 0%. I've racked up a fair amount in total, so really need to address the problem where the interest rates are higher.

Reading the recommendations on here, I should be looking to do a balance transfer rather than get a loan. However, I've just tried to apply for the Halifax card, and been declined. I have also received letters from my existing MBNA cards notifying me that they are decreasing my credit limit. I have previously been declined cards and suspect this is to do with the fact that my activity is clearly "tarting" activity. I fear my tarting days may be over!!

Can anyone make any recommendations on how best to clear the highest interest rate debts? I don't want to make too many applications in case this affects my credit rating. I am a high earner, and my credit rating is very good.

Many thanks to anyone who can offer advice!

By the sounds of it i think you should start doing some card tarting with the sub-prime cards.

DALIDOG

Thanks for the advice all. On the whole, pretty harsh but thank you anyway. I am no longer using any of my credit cards and haven't for the past 3 months so am just looking for the best way to reduce this debt.

KingElvis

DALIDOG wrote: »

Thanks for the advice all. On the whole, pretty harsh but thank you anyway. I am no longer using any of my credit cards and haven't for the past 3 months so am just looking for the best way to reduce this debt.

Sometimes harsh advice is what you need