£123 repayment £111 interest ???

pompeydave1

hi,urgent advice needed please.i have a MINT card with £5400 currently paying min £123/month but interest is rising and has hit an alltime high of £111 / month ???. got into a bit of money trouble 2 years ago and went with a debt management co with 4 a/c"s totaling £17k.managed to pay off 3 with help from family but took this one (mint) on my own and left debt co as embarrassed about being with debt firm and in the event of an emergency have 1 credit card.due to problems i have 1 default and 2 partially settled a/c"s.
obviously due to above problems i cant shift this creditcard debt and will be paying over 18 years at this rate - any advice what to do / go ???
salary £22k / private tenant.

many thanks

opinions4u

You're high risk and the rate reflects this.

Paying more than the minimum payment will chip away at it a little faster.

pompeydave1

ok but is there any other roads to go down ??

CLAPTON

you seem to be paying about 26% APR which these days isn't a particularly bad rate
only solution is to pay more each month

stephane_2

unless you can find another provider to transfer debt or pay far more than minimum payment your options are extremely limited unfortunately

chattychappy

Be on guard for future interest rate rises. You do have a limited time to "opt out". If you don't then you will struggle even more. If you "opt out" then you will have to stop using the card but continue to make repayments until the balance is finally cleared. In this case you will keep your current interest rate.

chattychappy

Just done some calculations. If you keep up the £123 a month and the interest rate doesn't change, then you'll have it paid off in about 9 years 8 months.

Probably your 18 year figure is based on just paying the minimum. But of course the minimum goes down each month. This all assumes no spending.

Now if you could pay £130 a month, then it would be done and dusted in 8 years.

Let's say you can only manage £123 for the next year, but then you get a better job so you can pay an extra £50 a month (ie £173). Then gone in about 5 years.

So things aren't as bad as they look?

KingElvis

^^ excellent work that man.

Xbigman

Yes, but the point of debt management is to take charge of all your debts, not 3 out of 4. If you've trashed your credit file and your debt position is no better than it was, how has that helped?

If you can't pay the minimum then go back to debt management with a free service like CCCS.
If you can pay the minimum then cancel the card and visit the debt free wannabe board, cut your spending to the bone and overpay. The figures posted above show how quickly extra payments can clear a debt like this.
Regards



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