Credit Card Debt - Help Required

Smacca78

I have debt on my (Virgin) MBNA credit card. I have had the card since 2007.

- The debt total is £5.8k (and rising per month with interest)
- CC limit £5.4k

Over the years I have only been able to pay the minimum payments (£154) back which just covered the interest.

Recently my circumstances changed with the unexpected loss of my job (although I now have a new job) and the birth of a new baby in the same month.

The last 3 months I have been unable to make the minimum payments. MBNA are now chasing me with letters asking to make the minimum payment. I'm unable to make the payment and survive until next payday. In addition the debt is increasing as I'm being charged the interest.

I do have some money on another credit card (£1,8k) available but I don't want to get myself into further debt. However I would like to offer MBNA this money as a total settlement. Life would be easier paying back this amount over a period of 18 months.

Just need some advice ASAP on action to take as there is so much information, I don't know where to start. Do I call them, write them, both, explain the situation, ask for the interest to stop?

Please help.

balmk

Hello,

Have you actually spoken with MBNA yet to discuss your situation? You may find them to be more helpful than you think!

Don't consider the £1800 on the other credit card as "yours" - it is a credit facility which may be withdrawn at any time.

Smacca78

No I haven't spoken to MBNA just yet as I do not know how I should approach the call.

Obviously to tell them that I'm unable to afford the minimum payment and that I'm not getting any closer to my credit limit etc.

clarelarge

Hi,

I had £4650 on my HSBC CC with a credit limit of £5750. It has been closer to £5750 outstanding for the past year or so but in the past 6 months I have been able to pay it off a bit.

I called them today after reading the forums here, and asked them if there was anything they could do about my interest rate. I also called RBS and Natwest who were really unhelpful.

HSBC reduced my WHOLE balance to pay 4.9% interest instead of 24.9%.

Awesome! If I was you I would call your card with the £1850 on and ask them for their best balance transfer offer. Transfer as much as you can from the bigger card, then ring up MBNA and ask them what can they do to reduce your interest rate and tell them that you can transfer the balance elsewhere to someone who WILL be able to work with you if they can't.

As someone said to me, don't sound desperate, sound like you have lots of other better options - seems to me people either are super unhelpful no matter what you say, or CAN help, ad will. SO just choose the battles you might be able to win.

Ignoring it is the worst thing you can do, you get all sorts of extra bank charges, etc.

Good luck!

clarelarge

The worst thing you are doing is staying OVER your credit limit with the bigger balance card. They will CANE you for that and it ruins your credit rating - although given what you said above it must be pretty bad already.

- you must be paying TONS of extra interest - you can reduce this massively just by switching the balance to the other card BUT make sure you call them first and ask them what their best deal is. Even if they don't have any deals at all you should still switch it so that you are then within your credit limits on both cards - and DON'T spend any more money!!

(don't be surprised if your credit limits get reduced as soon as you do this with no warning - wouldn't you if you lent money to someone and they went over what you agreed and weren't paying it back?! lol, not that I am on the credit company's side at all, just saying!! )

You would not be getting into MORE debt by switching the balance, you would just be MOVING the debt and overall you would be BETTER off because you would not be paying extra interest each month.

I know nothing about these, but go to findyourcreditunion DOT co DOT uk (can't post links yet not made enough posts)

and you can find out more - maybe you could get a loan to cover the whole lot??

Hope this helps and good luck! Ignoring it is the WORST thing you can do! Once you face it head on it needn't be as bad as you might think? :-)

Smacca78

Thanks everyone for your advice on my issue.

Fortunately the credit card that has got £1.8k available on it has a 0% balance transfer for a long period. Hence the reason for getting it.

Might switch and then start working them both down if possible.

If anyone else has additional advice then its always welcome.