Long-running credit card debt

jcalow

I am 26 years old and have had a long running credit card debt since I was 19. The card is with Marks and Spencer and I was tempted into getting it while I was an M&S employee as employees got a lower interest rate. I was given a card with a £3000 limit. I was earning at the time £10,500 a year. Being young I was totally experienced with borrowing and had used up my credit limit within a few months. After a little while I began to have financial difficulties and was late on a number of payments this lead to the 12 month 0%APR being revoked and the rate went initially to 12%APR and then rocketed to 39%APR where it has remained for the last 5 years. I have until now never been in a situation to make more than the minimum payment. Currently this repayment is around £80 a month. I have saved hard and I am now in a situation where I could make a reasonable dent in the outstanding balance which is currently around £2500.
I realize that the debt accrued is totally my fault and down to my foolishness. However, looking back at the age I was when I took out the card and the way in which the interest rate has been jacked I do feel that I have been taken advantage of. I wanted to ask for people's opinions on the likelihood of me being able to get this this debt reduced if I where to write to M&S and put this to them. Due to the interest rate hikes I have by my calculations made around £4800 in repayments to this debt yet I still owe £2500. Again, I do realize that this has been totally my doing but I feel that I have been taken advantage of. Any advice would be greatly appreciated.

Better_Off_1983

If you say that it has been your doing, you cannot really say that you have been taken advantage of.

Did you feel taken advantage of when you used the card in the many stores that you have used it, or withdrew cash on the card? What did all the money go on?

The credit card company would assume that you have read the terms and conditions and agreed to them to continue using and maintaining the card. You will be surprised with the amount of people that do not read that they have signed up for and then claim ignorance when the faeces hits the fan.

All you can do it make cutbacks and pay more than the minimum payments. You can offer a settlement figure but if it is a credit card, they may not accept it, not like they would a loan.

Do you have any other creditors other than this card?

If there is not a block on the card already, ask them to put one on there, account for the interest every month and pay more than the minimum payment

simeyb

Better_Off_1983 wrote: »

If you say that it has been your doing, you cannot really say that you have been taken advantage of.

Did you feel taken advantage of when you used the card in the many stores that you have used it, or withdrew cash on the card? What did all the money go on?

The credit card company would assume that you have read the terms and conditions and agreed to them to continue using and maintaining the card. You will be surprised with the amount of people that do not read that they have signed up for and then claim ignorance when the faeces hits the fan.

All you can do it make cutbacks and pay more than the minimum payments. You can offer a settlement figure but if it is a credit card, they may not accept it, not like they would a loan.

Do you have any other creditors other than this card?

If there is not a block on the card already, ask them to put one on there, account for the interest every month and pay more than the minimum payment

For someone that had £30,000 of debt (all paid off so congratulations!!!) you have been a little harsh I think on this person who had a few grand on an M&S card - I agree that the money was spent etc, but we wouldn't be on here would we if we were all whiter than white - to go from 0% to 12% APR is one thing, but I don't think anyone envisages at the outset that this would become 39%!!! On what planet is that a reasonable rate of return if payments continue to be made - it is a complete rip off and taking advantage - I don't think they will get anywhere with M&S but its worth speaking to them - don't ask don't get - good luck! Better-Off - perhaps a little smug and judgemental since 21 November 2012?

Bravehearted_2

39% APR is hardly unreasonable. Infact totally common. Not to mention the fact that you are allowed to reject the increase. If you think 39% is a rip off then what would you call Aqua and the like?

I don't think BetterOff1983 is out of line in anyway - and I too agree that the OP doesn't have a leg to stand on. Many cards charge way more than 39% not to even mention the crazy PDLs these days.

Unfortunately, there is really nothing the OP can do expect pay the balance accrued by them.

xbethanyx

Why not just write a letter and chance your luck? You never know, they might just offer you a lower rate!