Painful credit situation..

ssjw1000

Hi all,

Ok I don't know whether there is any advise I can get in my situation but thought it doesn't hurt to ask...

I have a couple of significant debts to clear for several thousand pounds, not great but not unmanagebale in the long run (hopefully), problem is that I seem to be suffering from very high rates of interest and I don't know how to manage it, if I can at all.

I am in between jobs at the moment, and whilst I am trying to manage that (hopefully will get something soon) I am only just about keeping up with my minimal debt repayments and given that I am paying very high rates of interest I am not clearing any of the outstanding capital balance off each month..

I have a good credit rating at the moment per experian (having just had an unfair default from O2 removed from my credit file that I didn't even know was there over the last 2 years). But having looked at it my credit card apr is an abysmal 25% (I am with barclaycard and have been for many years) and seeing as I cannot pay the balance of in full at the moment I am suffering excessive interest each month. I also have an old Cahoot flexible loan now with Santander which I am paying 21% apr on which is a whole other story...

I was just wondering if anyone had any advise as to if there are any options open to me for immediately reducing my interest charges given that I haven't a substantial monthly income at the moment? If I did I would apply for a new 0% balance transfer credit card and work off the debt over a few months, but right now it would be really handy to know if I have any options. If anyone can give advise thanks in advance!

Tixy

If you are not employed at the moment then there is little chance you will get any new credit.

Can you shuffle your debts around at all to pay less interest? ie isone debt a higher APR than the other?

Do you have any existing open but unused credit accounts (such as old credit card accounts you are not using) If you have then you could always try calling and asking if they have any existing customer deals.

If you could not afford minimum repayments you could ask your creditors to consider a reduced repayment plan or arrangement to pay and ask if they will freeze interest - although taking this option is likely to involve substantial impact to your credit file for years.

If you find you cannot carry on meeting your minim,um payments then seek some advice from one of the debt help charities.

happy_bunny_2

ssjw1000 wrote: »

I also have an old Cahoot flexible loan now with Santander which I am paying 21% apr on which is a whole other story...

I would complain to santander about this as long as you had most of the balance in place when they hiked the rates.

They did this to me, and I recently got £5k+ paid back into the account after complaining then taking to the FOS.

I know a few other folks on here are doing the same.

PM me if you want more info or any help with this.

ssjw1000

Thanks for the replies. And thanks Happy Bunny for the offer- I will pm you shortly about the Santander issue- any advise would be greatly appreciated!

patfla

happy_bunny wrote: »

I would complain to santander about this as long as you had most of the balance in place when they hiked the rates.

They did this to me, and I recently got £5k+ paid back into the account after complaining then taking to the FOS.

I know a few other folks on here are doing the same.

PM me if you want more info or any help with this.

i have 4000 still owing on fleexible loan
i have never defaulted etc and paid on time and still i am being charged approx 20% on balance owing.
this month however a paper statement said my interest rate is 0%
I was trying to find out if santander are now under pressure or
have been advised to do this as they are not responding to my enquiry
if 0% is now what i am going to pay what is my situation as regards the 20% which i have been paying previously
any answers greatly appreciated
thnx

happy_bunny_2

Patfla
Take a look of some of my other cahoot flexi loan posts regarding interest rates and complaints. Not sure what's going on with statements. Me and my wife get sporadic ones although I know they are getting quite a few complaints about the interest rate jacking. My wife's is one of them.

hp48910

Hi there,
I've just been accepted for a Barclaycard Platinum card with 7.9% for the life of the balance. The other good thing about this card is that there is no transfer fee. I have been paying 19.6% on one card and 16.9% on another. I make more than the minimum repayment each month but with balances on both cards of approx £2500, the interest was about £40 per card. I have been able to transfer £2700 onto the new card and have been told the projected interest will be approximately £17.

The best bit is that I can pay the balance off a lot quicker and continue to move other balances (yes there are more!) onto the card at the same rate without incurring a fee.

I am the second earner in my household, only working part-time. I applied and was accepted, despite (after acceptance) reading in the criteria that you need an income over £20k. I earn £16,500 pro-rata.

Good luck, it's worth a try and well done for starting to tackle your finances, that alone can make you feel loads better.

H x