Big trouble with credit cards

Condmach

Partner and I have £27230 split over 4 cards (2 x Barclays, 1 Tesco and 1 closed Abbey account).

Credit scores are as follows:
Noddle: 3/5
Experian: 913 (Good)
Equifax: unknown (only using free service)

Haven't missed any payments, but have just exceeded one of the credit card limits. Believe it or not, I used the wrong card to make a big payment on a car bill which was accepted, but now they have suspended the account and are asking for £300 to bring it back within the limit, money I haven't got. Until such time, they are going to charge £12 for each month it is over the limit (I also notice that part of the balance which was at 4.9% for life has now disappeared, so assume I've screwed this up).

As per advice given to me a few months ago, have been paying an extra £10 per month of each card to help my credit score.

Today, as recommended by Experian, applied for a Nationwide 0% Balance Transfer credit card. Filled out the online application; system gave me the nod, but decreasing limit to £2500 and increasing APR to 19.9% (from 15.9%); I applied - REJECTED!

What to do now? I don't want to apply for another card willy-nilly. If I only have one more shot at this, would I have a better chance of getting a Sainsbury loan (the other recommendation by Experian)??

Only other thing I can think of is, if it's possible, is to get my partner to transfer £300 from her credit card onto mine.

Thanks for any advice.

pippitypop

I would have taken the 0% deal myself.. it beats paying the charge every month for being over the limit. Or the best bet would be for your partner to do a balance transfer from one of her cards. Have you had a look at any of the MBNA cards/Tesco CC? Some offer 0% for up to 20 months on BTs. Good luck!

tlh858

Those credit scores are meaningless numbers. Might as well roll some dice and see what numbers they give you.

Yes, the 4.9% for life offer will have gone, as you have broken the terms of using the card properly by going over the limit. The whole balance will now be at a much higher rate.

The real problem is you have too much credit and can't afford to pay it.
You owe the better part of £30000 - paying an extra £10 here and there will do nothing.
A year ago when you posted about the same problem, the debt was virtually the same amount so nothing has changed in a whole year.

The solutions - either earn more money, spend far less of it, or both. You need to take action on these TODAY, as this problem will only get worse otherwise.

The worst possible choice is to get another loan or credit card.
Unless you and your partner have very substantial salaries (which seems unlikely given you can't afford the £300 the card provider wants), you won't be getting any more credit anyway.

CLAPTON

what do each of you earn
which debt is with which person
if what are the limits of the card and what is the current balance

you you each have ODs and do you use them

Condmach

pippitypop - Not sure I understand your post (or you mine for that matter!). I didn't get a 0% deal, otherwise I would've taken it.

tlh858 - Honestly didn't realise it had been that long. The debt has changed; my partner had 2 credit cards I was unaware of so our debt was closer to £40000. I took the £9000 from a relative and have since paid off one of partner cards and one of my closed card accounts, but still owe £8000 to relative (paying £100 per month). So about £4000 better off since last year. And to be honest, it was advice I was after, not a lecture.

CLAPTON - answers below
what do each of you earn
Me: £36000 plus extra £200 month seasonal work (Aug-Apr)
Partner: £200-300 month part-time

which debt is with which person
see below (bear in mind that I owe a further £8000 to a relative)

if what are the limits of the card and what is the current balance
Me:
Tesco 6720/7000 (balance/limit)
Barclaycard 7965/7660 (balance/limit)
Abbey (closed) 6775/NA (balance/limit)
Partner:
Barclaycard 5775/9320 (balance/limit)

you you each have ODs and do you use them
Me: 2500/always in use
Partner: 300/always in use

YorkshireBoy

Condmach wrote: »

Believe it or not, I used the wrong card to make a big payment on a car bill which was accepted

Why on earth wasn't that card locked away somewhere safe!?

...but now they have suspended the account and are asking for £300 to bring it back within the limit, money I haven't got.

Yes you have...you have funds available on the card you should have used. Simply BT the £300 from the overlimit card to that one. Any BT fee payable is bound to be cheaper than £12 a month for several months. In fact, at 3% it'll cost you £9.

BugsyBrowne

Condmach wrote: »

Partner and I have £27230 split over 4 cards (2 x Barclays, 1 Tesco and 1 closed Abbey account).

Credit scores are as follows:
Noddle: 3/5
Experian: 913 (Good)
Equifax: unknown (only using free service)

Haven't missed any payments, but have just exceeded one of the credit card limits. Believe it or not, I used the wrong card to make a big payment on a car bill which was accepted, but now they have suspended the account and are asking for £300 to bring it back within the limit, money I haven't got. Until such time, they are going to charge £12 for each month it is over the limit (I also notice that part of the balance which was at 4.9% for life has now disappeared, so assume I've screwed this up).

As per advice given to me a few months ago, have been paying an extra £10 per month of each card to help my credit score.

Today, as recommended by Experian, applied for a Nationwide 0% Balance Transfer credit card. Filled out the online application; system gave me the nod, but decreasing limit to £2500 and increasing APR to 19.9% (from 15.9%); I applied - REJECTED!

What to do now? I don't want to apply for another card willy-nilly. If I only have one more shot at this, would I have a better chance of getting a Sainsbury loan (the other recommendation by Experian)??

Only other thing I can think of is, if it's possible, is to get my partner to transfer £300 from her credit card onto mine.

Thanks for any advice.

I am not a great lover of people going bankrupt with debt but it seems you are actually attempting to payback what you borrowed.

I would seriously consider bankruptcy if I was you, in 6 years you will have a fresh start and the misery would stop and it's more excepted these days especially with high living costs etc.

Broadwood

tlh858 wrote: »

Those credit scores are meaningless numbers. Might as well roll some dice and see what numbers they give you.

Yes, the 4.9% for life offer will have gone, as you have broken the terms of using the card properly by going over the limit. The whole balance will now be at a much higher rate.

The real problem is you have too much credit and can't afford to pay it.
You owe the better part of £30000 - paying an extra £10 here and there will do nothing.
A year ago when you posted about the same problem, the debt was virtually the same amount so nothing has changed in a whole year.

The solutions - either earn more money, spend far less of it, or both. You need to take action on these TODAY, as this problem will only get worse otherwise.

The worst possible choice is to get another loan or credit card.
Unless you and your partner have very substantial salaries (which seems unlikely given you can't afford the £300 the card provider wants), you won't be getting any more credit anyway.

Tbh....in reality the above is very good advice if saving money long-term is your ultimate goal. The truth isn't necessarily what we always want to hear, so some close friends might tell us what they think we want to hear, but in reality they'd not be doing us any long-term favours.

pippitypop

Oh, apologies! Was just a little confused as in my experiencce when the bank counter offered me a higher APR they kept the 0% offer. Sorry! The best bet would be to balance transfer from your partners credit card. It'll take a few days to go through but is probably the best for the long term. Best of luck!

Condmach

BugsyBrowne wrote: »

I am not a great lover of people going bankrupt with debt but it seems you are actually attempting to payback what you borrowed.

I would seriously consider bankruptcy if I was you, in 6 years you will have a fresh start and the misery would stop and it's more excepted these days especially with high living costs etc.

I'm surprised a few of you seem intent to write me off as a bad penny! If your signature is correct BugsyBrowne, then you would know more than any of us put together, but you never asked if I had equity - I have, about £70-75k on a £195-200k property.

Perhaps a remortgage could get me out of this then, although I got the impression that LTV and salary multiples had decreased over the years.

Thanks for any help going foward people.

CLAPTON

40k in debt with income of 40k ish

really need to see the full details of income and spending but frankly a remortgage does seem the best (only) realistic option as long as you don't start to run up the CCs or ODs again in which case the house may be at hazard