Help! Stuck with credit card charges..

scottyfocus

Hi all, new to these forums. Just after abit of advice as this is starting to get to me now.

Nearly a year ago now i opened a credit card with barclays. I pretty much maxed it out buying loads of mods for my car. The credit limit is £3500. At the time it wasnt really much of an issue, i had my own key to work and could literally work all the hours under the sun if i wanted to. So paying it back was not an issue.

Anyway, to cut a long story short around september/october time i accidently went over the credit limit. Around this time the overtime was knocked on the head at work too. Over the next few months i also made 2 or 3 late payments.

I suddenly found myself earning basic 18k a year, with 10k worth of finance, owed my folks about 6k and then this credit card.

Sold the car, cleared the finance and set about paying off my parents.

Fast forward 4 1/2 months and i have paid all my debt of with the parents so literally only have the credit card left (balance is £3230)

I tried (when i first went over the limit) a few times to get a balance transfer CC but was rejected. I have since signed up to Experian and my credit score is 970.

I have absolutely no idea what to do, i dont want to try for another balance transfer in case im rejected and the same goes for a loan. Yet i am stuck paying stupid interest rates on this CC.

To top it off i also need a car as my brother has found a new job and he used to take me to work.

Help! LOL, sorry for the essay.

Thanks, Matt.

vics199

What is the APR on the credit card?

As your late payments and going over your limit are still recent then its unlikely you will get accepted for another credit card until at least 12 months after your last late payment (it has taken me 18 months since my last late payment to get another credit card for 0% transfer purposes), although obviously other factors are taken into account other than that.

Plus you will automatically get rejected if you have applied for 3 things in the last 6 months and have been rejected.

Its probably going to be best just to pay this card off ASAP and just accept that you will be paying interest on it.

scottyfocus

Hi mate, thanks for the reply. Im not sure what the apr is but i know its high, something like 20-25%.

The problem is, the minimum payments are roughly £90 so im paying that plus £1. Once ive made a payment the balance is only reducing by something like £40. So basically im paying something stupid like £30-£50 per month in interest.

I know i messed up and ive learned from that, it wont happen again. I just want to get away from the stupid interest rates.

I havent applied for any C.C in the last 6 months, i havent applied for anything in fact.

Im 22, and i earn 18k a year. Have a phone contract, i did have finance on a car which i cleared with no missed/late payments.

I guess i want to know if i have any options at all, apart from just grin and bear it. What are the chances of me getting a loan? Do i have any chance at all of getting a balance transfer CC?

bouncydog1

You need to post up a statement of affairs showing all of your income and outgoings so that you can see where you can cutback. if you live at home then you should be able to easily get this paid off within a relatively short period of time. Paying £1 over the minimum will take years and you do not want to try for another loan!

Sticky is at the top of the page with the statement of affairs link..

scottyfocus

Ok my incomings and outgoings are pretty simple. Up until last week i have been paying my parents £800 a month and am now debt free with them.

Wage after tax: £1128

Board: £120
Meal/cinema with the GF: £260
Petrol money for work: £60
Phone contract: £42
Gym: £36

Im going on holiday on June 20th so need to save spending money on that. Need approx £500

Also my brother is taking me to work, once he finds a job i will need a car.

matttye

scottyfocus wrote: »

Ok my incomings and outgoings are pretty simple. Up until last week i have been paying my parents £800 a month and am now debt free with them.

Wage after tax: £1128

Board: £120
Meal/cinema with the GF: £260
Petrol money for work: £60
Phone contract: £42
Gym: £36

Im going on holiday on June 20th so need to save spending money on that. Need approx £500

Also my brother is taking me to work, once he finds a job i will need a car.

You should have £600 left after those expenses.

Overpay on the credit card until the balance comes down and you're not getting stung for as much interest.

Just grin and bear it.. you can afford it.

DevCoder

TBH, Holidays and spending money are luxuries if you are intent on paying off debt and/or getting a car.

As the previous poster mentioned you have ~£600 spare after outgoings so I don't really see what the issue is.

You state in your first post that your brother has found a new job and you thus need a new car and in your latest post state that "once he finds a job". Which is it?

matttye

Also, are you on the right tax code or do you have pension contributions go out or something? I earn £16,275 per year and I have more money than you after tax each month.

happycamel_2

If you cut back on the entertainment and put the £800 you were paying to your parents you could pay £900+ a month and it'll be gone in no time. A bit of sacrifice now and a lesson learned in saving up for things and you'll save a fortune in interest through the rest of your life.

oopsadaisydoddle

I know it may bot be possible, but is there any chance you could re-borrow the money from your parents? If they know you were previously good with your payments and helped out, you would save in interest.

But other than that, I agree with others, if you're intent on paying debt then you 'can't have it all' until the debt is paid off.

DH and i have credit card debt at the mo and luckily it's on 0%. We're lucky that our situation is that we can pay it back within the 0% and have some luxuries however there are times where i wish I could convince DH to cut right back and clear it sooner. He won't though!!

dancingfairy

So you owe 3,2530 (available 3,500) on a salary of 18k? that doesn't sound too bad to me (unless you have other available credit showing on your file which you are not using?)
If you haven't applied for anything for 6 months it might be worth having a go at getting a cheaper cc or loan. 1 or 2 attempts max.
How much do you need to get a car (max 1,500 I guess?).
I make it that you're looking at about 5,000 ish? If you go for a loan do make sure you can easily afford the repayments.
When will you need to get this car? how many months have you got to save etc?
df