Consolidation of relatively small debts

mayforher_2

Hi everyone,

I am sure there have been loads of posts like this in the past but I just want to know everyones opinion on my personal situation and what the best way forward is. Long story short, I got a credit card given to me by my bank when I was 17, didn’t really understand anything about credit whatsoever, spent all the money on it (£1,500) and paid interest only for the next 5 years, completely unaware of balance transfers etc. SO I then transferred my balance to a Barclaycard when I realised it was possible. They gave me a bigger credit limit, I got my car insurance on it in one lump sum because its so expensive and would have cost much more to pay it off in monthly payments.

I tried paying off the amount I would put into my car insurance to get the credit limit down but we ended up in a couple of situations where we needed money and used the card again. So I now have a credit card with £3,800 (limit, maxed) on it and the 0% interest runs out in June. I have an overdraft of £1,000, two smaller ones of £450 and £350 and my partner has an overdraft of £1,200. We desperately want to just consolidate all these debts but the priority is sorting this card out before the interest starts on it. I am not going to be able to afford the interest and I certainly wont be able to afford the interest AND trying to pay it off.

I tried to apply for another 0% card and got declined, decided not to apply for anymore because I don’t want it to affect my credit rating. I am not sure why I got turned down, because my credit rating has not changed one bit since I got the Barclaycard, its glowing green! I think it may be because the amount I have on it is so much perhaps? Not entirely sure. Anyway, went to get a loan and got told that because my partners wage doesn’t ever take him into credit we can’t get one at the moment.

We are going to work on that by putting all our spare money into his account to bring him into credit every month, but does anyone have any suggestions of what we can do to get rid of this credit card and pronto? I just want to pay it off and not be paying £200 a month interest because I just can’t afford it. I genuinely thought I would just be able to do another balance transfer onto another card….how foolish of me!

Does anyone have any ideas?

Thanks

DCFC79

Well do a statement of affairs and post it on the debt free board to try and get ideas how to cut it down.

tell_it_how_it_is

It seems you're living beyond your means, so perhaps pop across to the "Debt Free Wannabe" forum, and post up your statement of affairs. A few of the regulars on there should be able to offer advice as to cutting costs.

For me, you've still got five months at 0%, so after you've visited the above, I'd be concentrating on paying off as much as you can ahead of that time, and look again at a transfer closer to that time.

If you can cut out or save something on mobiles, satellite, clothes, going out, booze, fags etc., you'd be clearing half your CC by June if you could spare £400pm.

jonesMUFCforever

I don't believe OP that she got a credit card at the age of 17.

Firefox1975

I think its a girl MUFC.

Have you asked the bank who provided the credit cards if they will turn it into a loan and close the Credit Card?

mayforher_2

jonesMUFCforever wrote: »

I don't believe OP that he got a credit card at the age of 17.

Sorry, why don't you believe I got a credit card at 17?! why would I want to make something like that up? I was stranded in Manchester after a job interview because I had left my bank card in my other coat, I went into the bank because I couldnt afford the train home and asked them to extend my overdraft by a tiny amount just until the next day and they agreed but the person i was speaking to said "Do you want a credit card in case this happens again?". i didnt really know what one was and just said yes because i was in a flap.

Not that I have to justify myself to you?! Very constructive post by the way, thanks ever so much. I am a girl by the way.

I'm going to do the rounds at the banks on Saturday and see if any of them can help me, I was just wondering if anyone on here had any suggestions.

Tell_it_how_it_is, i definitely was living beyond my means previously, when I got first credit card and just spent on it not knowing the consequences! I'm not anymore because i got a good job with a good payrise etc so I am financially better off but just want to find a way of paying this credit card before it goes out of its 0%. I will have a look in debt-free wannabe thanks for everyone who suggested looking in there.

DCFC79

Do you work ? do a SOA as i suggested earlier and post it on on the debt free board

Niv

jonesMUFCforever wrote: »

I don't believe OP that he got a credit card at the age of 17.

I got one at 17 too. I completely believe they got one at that age.

Niv

mayforher_2

Niv wrote: »

I got one at 17 too. I completely believe they got one at that age.

Niv

Thanks Niv, I don't know why anyone would make that up?!

DCFC i do work yes, ill have a look and do that. Thanks for all your help to the helpful ones!

somethingcorporate

You need to be an adult (18) to enter into a credit agreement hence the question of your age arose.

mayforher_2

somethingcorporate wrote: »

You need to be an adult (18) to enter into a credit agreement hence the question of your age arose.

Oh dear, well I wasnt so someone is in big trouble! I think I need to go into my bank and discuss this with them.