debt advice please

janeawej

A friend of mine has about £7000 on a credit card, she has just finished paying off a loan for other credit card debts and wanted to get another loan from the same people but has been refused despite having missed no payments, has anyone got any idea what she could do next please? she dosent work as cares for her disabled husband. I said i would ask on here as i know you lot are very good at giving advice on debts! thanks Jane;)

skylight

What does she actually want to do??? Although you haven't specified, I assume she wants to pay off the existing credit card as the interest is too high and wants something lower and managable????

Becuase as you have written your post, it implies that she has lots of debt and just wants another loan (which is a stupid idea!)

janeawej

charlotte664 wrote: »

What does she actually want to do??? Although you haven't specified, I assume she wants to pay off the existing credit card as the interest is too high and wants something lower and managable????

Becuase as you have written your post, it implies that she has lots of debt and just wants another loan (which is a stupid idea!)

sorry i wasnt too clear was i? yes she does want to pay off the existing credit card and thought that by getting a loan and paying it off with that, then paying off the loan it would be cheaper, she has already managed to pay off about £10000 of debt but seems to be stuck for what to do now, she has already paid off other credit cards with a loan and has now repaid that loan, and wanted to do the same again but was refused the loan, any advice would be welcome thanks

skylight

See what you mean!

If she is not working, then she is going to find it difficult to find any reputable lender with a reasonable rate who will loan her money.

Has she thought about 0% credit card and transferring the balance from the current card (obviously cancelling the old card!!)? Although her the danger and probability is that she will not have paid off the card within the 0% period as they are only normally for 6 or 9 months. Then the interest goes sky high. Lots of people "tart" and at this point they get another 0% card - but this is only great if her credit is good.

If she is not fussed about her credit rating, then perhaps she needs to tell the credit company she cannot afford to pay it back at the current rate and ask them to stop all interest and charges on it and pay them back at a more affordable rate - again, cutting up the card. Try National Debtlilne for advice on dealing with debts. They have lots of letter templates to use and send off. I mention the credit rating as they will enter a default onto her credit file if this route is taken and it will affect her ability to get credit in the future.

Lastly, she could always call her current card and tell them that she is a good customer, no late/missed payments and is not happy with the current rate and ask them to reduce it or she will go elsewhere. Again, danger is that they say "go on then, leave!", but actually the worst thing they can say is no.

Other than this, I suggest she puts together a complete SOA (Statement of Affairs) as mentioned on the stickies on this board and we can look at the best ways (if any) to trim her budget so she has more money to throw at her debt. Afterall, the money she was paying to the loan company can be thrown at the credit card straight away.

janeawej

Thanks charlotte, i have just found out that her OH does not know about this debt!!!!!!!!! so she dosent want him to find out!! so most things would be difficult to arrange secretly, she realy is in a mess, but realises it is her own fault and is selling much of her designer clothes ect on ebay to help pay off the debt.