Best solution to credit card debt = Tesco loan? Any advice?

anyusernameleft

Emmzi, you are definitely a bank manager. Probably for Virgin. My peer group is 45.
Trashing my credit rating, which I've got into more debt than I needed to preserve, has to be the stupidest thing at this point and now I'm starting to wonder if all this "show us all your debts" thing isn't so the banks can catch out the people who are in trouble and suddenly I'm wondering if I should have hid my IP address....

Emmzi

I'm not saying you can't resent 30%. You can feel anything you like about it.

I'm just explaining why the rate is what it is. Someone paying the minimum every month *is* a higher risk and generally *won't* become eligible for a rate drop. And by the way, your credit report will show you as a minimum balance payer every month, and new lenders can see that your total debt is not reducing = risk = no loan/ higher rates.

If you have £400 a month spare as I think you said earlier, chuck it at the card and ask for a rate drop every 6 months on basis of reduced risk.

You have options. Not the one you want, right now.

You just need to choose one of the other ones.

Emmzi

anyusernameleft wrote: »

Emmzi, you are definitely a bank manager. Probably for Virgin. My peer group is 45.
Trashing my credit rating, which I've got into more debt than I needed to preserve, has to be the stupidest thing at this point and now I'm stating to wonder if all this "show us all your debts" thing isn't so the banks can catch out the people who are in trouble and suddenly I'm wondering if I should have hid my IP address....

I didn't say do it. I just put it there as an option. Stop seeing conspiracy theories and people out to get you!

Many 45 years olds have money problems. And 45 is not your sole identifying criteria.

FYI I am now working in a nice HR job and I'm just trying to help. Although frankly I can't be arsed with you and your rage any more.

I hope you find what you are looking for. Good luck.

anyusernameleft

Ah, HR! Thanks. (Humour - just flagging it up as you missed it the last time)

As I said, not really seeing the advantage of using my limited available very hard won cash to pay off the unpayable and am using it to pay the sensible people like the Co Op. It's the Virgin card that has to go.
Thanks for your input but I'll wait awhile and try a few other things before I sell my house for Richard Branson's rip offs.

ViolaLass

You really need to get over this rage at an interest rate that you presumably accepted at the time. Richard Branson does not have a personal vendetta against you and neither do any of us.

Clearly we're not giving you the answer you want so why not go and ask Tesco whether they'll give you the loan. If/when they say no, you can come back here and re-read the advice you have been given on how to deal with your debts.

If your post above means that you're throwing spare money at the lower interest debts instead of the Virgin one, then god help you, you clearly don't have a clue.

anyusernameleft

I don't have a clue because I'm not throwing money at a game I can't win? Did you not notice that I came here to try and find a way to get rid of the Virgin card? I'm sure I mentioned it. Repeatedly.

Oddly I didn't accept a 30% rate from Virgin. When I took the card out it was 0%.
They put it up again and again after I lost my job and there wasn't anything I could do except try and keep meeting the minimum payments. Lucky you you've never been in that position.

I haven't had any advice from you on how to deal with my debts other than throw good money after bad. If you've got £10 and paying it to A kills £3 pounds of debt surely it's better than paying it to Branson and paying off 0.03p worth of debt? Isn't that sort of stuff what this site's about?

A few other people on here have had some very helpful information so there's been something good here and I thank them.

ViolaLass

anyusernameleft wrote: »

I haven't had any advice from you on how to deal with my debts other than throw good money after bad. If you've got £10 and paying it to A kills £3 pounds of debt surely it's better than paying it to Branson and paying off 0.03p worth of debt? Isn't that sort of stuff what this site's about?

You should always pay the debt with the highest interest rate off first/most quickly, otherwise it will grow and because of the interest rate, it will grow more quickly. How will not paying it at all help? The interest will still be accumulating.

I have offered to look through your SOA and see whether you could save any money elsewhere to help with your debts. You have refused. I have suggested you sell your house and then possibly buy another. You have refused. Given that you have sizeable capital and could solve all your problems very easily, I don't understand why you refuse.

I haven't said "Yes, of course Tesco will give you a loan" because it's not what I think. It may be what you want to hear but that isn't what this board is here for.

anyusernameleft

I'm not selling my house because I can't get a bedsit anywhere near my work for the same outgoings and it's an investment that considerably more than offsets all my debts even in this economic climate. It would be extremely stupid.

If the interest is so high you can't win surely paying off the stuff you can pay off while you at least fight a holding action with Virgin long enough to get into a better situation is a better bet? All I'm paying there is interest, I can pay off a much higher percentage of actual debt with the same money elsewhere and get in better shape for a new lender to like me more. In the long game it might be a worthwhile plan. Better than just giving up anyway.

I don't necessarily want Tesco to offer me a loan if it's at 16%. That's one of the things I came here to learn and I did.

I got a lot of useful info here and I thank everyone who contributed. But you doom and gloomers when I haven't been refused for a thing yet, well if you're all right I'll come back and tell you so.

If I find a way to get shot of rip off Branson,which looks like being more of a long haul than it ought to be, then I'll try and remember to come back and tell you so.

Derivative

If I were a bank manager and could get a stone cast guarantee you'd repay on time, I'd be glad to charge you 5%.
Sadly, loans are priced according to risk. Perhaps as a borrower it seems to you perverse that when you're in more trouble, you're charged a higher rate.

If you sell your property and pay off all outstanding loans, 40k will get you very far in London, indeed anywhere. If you're unable to pay your loans and continue to get charged ridiculous interest on them - it's not a better idea to 'remain on the property ladder', as you say.

If you chuck the debts, I don't see how you couldn't get another property on a 40k salary. Chances are you could save 20k a year and buy something outright after 10-15 years.

happyhaddock_2

I am on a debt management plan (DMP) with CCCS and all of my creditors have frozen interest and charges (Halifax have just started charging me 1% instead of 27%) to enable me to repay the capital instead of it all going on interest payments. It HAS trashed my credit rating (which used to be excellent) but as I don't want to ever have to apply for credit again I don't care.