Between a rock and a hard place

Needs_sorting

I have one credit card and have managed to max it out over the past 6 or so years (£10,000). I am now in a position where the credit card interest is 29% and all i'm now doing is paying off the interest every month and not touching the debt!!!! However after reading the debt problem page here on Money Saving Expert, i have tried applying for a new credit card and got declined, then tried plan B by trying to apply for a personal loan and again got declined! I can't possibly have bad credit as i always pay every month and have never got into arrears with payments. What am i doing wrong?

BugsyBrowne

Whats your salary?
Total debts?
Available credit?
Credit limits?

DCFC79

Needs_sorting wrote: »

I have one credit card and have managed to max it out over the past 6 or so years (£10,000). I am now in a position where the credit card interest is 29% and all i'm now doing is paying off the interest every month and not touching the debt!!!! However after reading the debt problem page here on Money Saving Expert, i have tried applying for a new credit card and got declined, then tried plan B by trying to apply for a personal loan and again got declined! I can't possibly have bad credit as i always pay every month and have never got into arrears with payments. What am i doing wrong?

Lets be realistic here, you have been declined twice which in my view tells me you are either at your limit of credit eg your credit in relation to salary + other commitments OR your credit file has been dented in some way.

Have you actually looked at your credit file ?

Oh and as for " What am i doing wrong? " it should be obvious that your spending too much.

gb12345

Needs_sorting wrote: »

I have one credit card and have managed to max it out over the past 6 or so years (£10,000). I am now in a position where the credit card interest is 29% and all i'm now doing is paying off the interest every month and not touching the debt!!!! However after reading the debt problem page here on Money Saving Expert, i have tried applying for a new credit card and got declined, then tried plan B by trying to apply for a personal loan and again got declined! I can't possibly have bad credit as i always pay every month and have never got into arrears with payments. What am i doing wrong?

You currently owe £10,000 and are trying to borrow another £10,000. You say you are going to use it to repay the CC, the lender will assume the worst case and will therefore underwrite you for a total credit of £20,000.

Unless you are earning in excess of £40,000 a year, no one is going to consider you for total credit of £20,000.

lenforder

gb12345 wrote: »

.

Unless you are earning in excess of £40,000 a year, no one is going to consider you for total credit of £20,000.

Is that the minimum basis for credit acceptance?

gb12345

lenforder wrote: »

Is that the minimum basis for credit acceptance?

It is one of the criteria that lenders will use - a maximum credit of 50% OF INCOME.

lenforder

Ahh ok, interesting..

27col

So, you have run up £10,000 of debt in 6 years, and you have done nothing to address the reason for this state of affairs. Such as maybe, here's a thought, reducing your spending.
Cutting up your credit card for a while might seem to be one idea you could adopt. Another might be to get your card limit reduced.

Needs_sorting

Interesting replies, considering i can on here for help not to be bashed. I earn £35,000 per annum, i don't have any other credit cards or store cards or any outstanding bills. Yes i have been over spending and yes it should have been addressed earlier but sometimes life isn't that easy. None of you know my circumstances of how i have got here so comments such as 'Stop Kidding yourself' aren't helpful

DCFC79

Needs_sorting wrote: »

Interesting replies, considering i can on here for help not to be bashed. I earn £35,000 per annum, i don't have any other credit cards or store cards or any outstanding bills. Yes i have been over spending and yes it should have been addressed earlier but sometimes life isn't that easy. None of you know my circumstances of how i have got here so comments such as 'Stop Kidding yourself' aren't helpful

Well what replies would you like, you have some credit and you applied for 2 forms of consolidation and have been rejected so theres only 1 option which is to cut your spending.

Maybe answer the questions in rpely #3.
Reply #5 answers why you can get the 10k loan.

Needs_sorting

Thank you DCFC79, Reply number 5 has been helpful as i now have a better understanding of how creditors will see me. No one comes on this site unless they need helpful productive advice about debt not to be told that 'i'm living above my means' of course i am that is why i am here trying to sort it out. The kind of answers anyone is looking for here is what the next step should be. Not to be slammed by people