Need some advice regarding credit cards and how I can get on top of debt!

cchelpneeded

I have around £6500 on one credit card. I also have a £400 overdraft.

I'm at a point where I feel like my credit card debt level is just hovering, I pay off a little but the interest each month almost overwrites what I pay off. I'm really fed up with this and want to get it sorted out once and for all.

I would like to get a 0% credit card for a while, balance transfer and really try to work at paying things off without interest.

My problem is that any time I apply for a credit card (twice within the last 8 months because I didn't want to make things worse for me or my partner at the same address by repeatedly applying) I am refused.

I have come to believe that the reason for this is because I bottom out my overdraft every month. I'll start the month with wages in, which will take me right out of my overdraft, but I've been so used to having this overdraft for years now that I don't even consider it, and always end up well into my overdraft in the days leading up to payday.

Am I right in thinking this is most likely what is causing me to get refused for new credit cards? I have never missed a payment on a card, and only once in the last few years was I over my overdraft limit, but that was paid off the same day before any charged occurred.

Am I best to pay off my overdraft then, and cancel it, then wait a while (how long?) before I apply for a new credit card?

Is there another route I can take to try and handle this?

Thanks to anyone who can help!

cchelpneeded

Anyone?

societys_child

Surprised you've had no answers and as I've never needed to use overdrafts, I'm not the best to give advice.

However, I would imagine it's the constant use of the overdraft that's your problem. So yes, pay it off and try to stop using it.

SCO

Your constant use of your overdraft shows potential lenders you do not budget well.

As for the 6k on the card, if you cannot get a 0% transfer deal as you say you should go for a loan, best chance would be from your bank.

A loan will most likely be a lower APR and you will have an end date to when it will be paid off.

What interest are you paying?

bengal-stripe

So, you bottom out your overdraft, you bottom out your credit card.
What is the message for a potential lender? - You are debt-stressed!

CLAPTON

cchelpneeded wrote: »

I have around £6500 on one credit card. I also have a £400 overdraft.

I'm at a point where I feel like my credit card debt level is just hovering, I pay off a little but the interest each month almost overwrites what I pay off. I'm really fed up with this and want to get it sorted out once and for all.

I would like to get a 0% credit card for a while, balance transfer and really try to work at paying things off without interest.

My problem is that any time I apply for a credit card (twice within the last 8 months because I didn't want to make things worse for me or my partner at the same address by repeatedly applying) I am refused.

I have come to believe that the reason for this is because I bottom out my overdraft every month. I'll start the month with wages in, which will take me right out of my overdraft, but I've been so used to having this overdraft for years now that I don't even consider it, and always end up well into my overdraft in the days leading up to payday.

Am I right in thinking this is most likely what is causing me to get refused for new credit cards? I have never missed a payment on a card, and only once in the last few years was I over my overdraft limit, but that was paid off the same day before any charged occurred.

Am I best to pay off my overdraft then, and cancel it, then wait a while (how long?) before I apply for a new credit card?

Is there another route I can take to try and handle this?

Thanks to anyone who can help!

your first step is to start to budget properly
try
http://www.stoozing.com/msoc/soacalc.php

then start to keep a spending diary and find out exactly where all your money goes

then cut out everything that not essential

clearing the OD is on obvious step as it clearly shows you can't live within your means and have no spare cash to repay any further debt
no need to actually cancel the OD facility, just stop using it.

if you want lots of encouragement and support with budgeting then try the debt free wannabe board.

MrGreen

It's a good thing that you have started to think about your situation as Clapton has suggested do a budget and keep a spending diary when you done your SAO post on here and people will be able to help you with ideas to get out of your current situation.

I would suggest if you are paying just the minimum on your credit card then start paying a fixed amount which you can afford that is above the minimum amount and pay it as soon as you get paid rather than waiting for the due date.

Have a look at the minimum payments calculator and try the compare function
http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

mikecardigan

I don't know too much about credit card debts, but one of my friends found interesting info right here:

consolidationcreditcarddebt . org

I can do a little more research if you don't find what you want there.

cchelpneeded

Thanks for all the support guys! I'm leaving work at the moment and can't reply to each suggestion individually but I'll have a look at them all tomorrow morning!

One question, in case anyone can advise - How long should I try and stay out of my overdraft facility before it would be worth applying for a credit card again with balance transfer in mind?

I remember hearing before that your credit score is updated towards the end of each month, but I'm wondering how long it would take without my overdraft to make a major impact on applying for a new card.

dresdendave

Please read post #6 by Clapton re DFW board. The most important thing to do is reduce your spending, your overdraft will soon dissappear and then you can start making increased payments towards your card debt. You have a 6k debt because you have been living outside your means for the past few years.

Sorry if the above sounds harsh but applying for a new card is meaningless unless you cut your spending.