If I cant get my interest frozen this debt will never end! Please help!

missgstar26

Hi Guys

I have 3 credit cards that I need to pay off - HSBC, Santander, and MBNA, with interest rates of 23.9, 19.9, 18.9 respectively. In total the amount outstanding is 13.5K.

My income is £1800 per month, and after all my necessary expenses I have 600 per month to spend on my debts. I spread the amounts equally over the 3 cards. I am soon going to be moving in with my partner, and so some of my outgoings will be reduced. I will then have 850-900 to pay off my cards.

But I'm finding that the interest is probably 90% of my payments.

I've had a good few emergencies over the last few months, and have been late with some of my payments, but other than that I've been able to at least make the minimum.

I'm getting really frustrated with all this debt, and would love to be able to make a serious dent in the total value owed.

I was thinking of approaching the providers to see if they could freeze my interest. Even if it's for a year?!?! But are they likely to consider it if I am able to pay the minimum amounts???

Any advice would be great!

YorkshireBoy

missgstar26 wrote: »

I have 600 per month to spend on my debts. I spread the amounts equally over the 3 cards.

That's not the way to go. You need to snowball the debts, ie make minimums (plus £1 to remove the min payment marker on your credit report) on the lower interest cards and throw the rest at the 23.9% APR card.

But are they likely to consider it if I am able to pay the minimum amounts???

No chance!

Any advice would be great!

Since reducing your outgoings is in the pipeline, and re-structuring the debt appears to be out of the question due to your missed payments, then the only option would seem to be to increase your income...a second job or overtime perhaps?

opinions4u

missgstar26 wrote: »

I have 3 credit cards that I need to pay off - HSBC, Santander, and MBNA, with interest rates of 23.9, 19.9, 18.9 respectively. In total the amount outstanding is 13.5K.

My income is £1800 per month, and after all my necessary expenses I have 600 per month to spend on my debts. I spread the amounts equally over the 3 cards.

First thing to change then. Pay minimum payment plus £1 on all cards. On the most expensive one, HSBC, you need to throw the rest of your £600.

I am soon going to be moving in with my partner, and so some of my outgoings will be reduced. I will then have 850-900 to pay off my cards.

That's great news. You're in a position where you can start to make some real headway.

But I'm finding that the interest is probably 90% of my payments.

You will find that the more you pay, the lower this percentage becomes. As time passes this situation will improve.

I've had a good few emergencies over the last few months, and have been late with some of my payments, but other than that I've been able to at least make the minimum.

You need to make sure these late payments don't happen again. They mess with your credit file and they also increase the likelihood of the card companies increasing their interest rate (if you haven't already opted out of rate increases).

I'm getting really frustrated with all this debt, and would love to be able to make a serious dent in the total value owed.

Your reduction in outgoings will help. What can you do to increase your income as well?

I was thinking of approaching the providers to see if they could freeze my interest. Even if it's for a year?!?! But are they likely to consider it if I am able to pay the minimum amounts???

You borrowed the money. You have the means to maintain the debt. Why should other customers have to pay more interest to subsidise you?

In other words, no chance.

£13,500 should be repaid within 2 and a half years if you continue paying £600 a month.