Credit card help

Missile9

Hi, can anyone give me some advice? I've got a credit card balance of £5,345.39 and have been paying off £100 per month but still being chardged interest of £31.84, even though I have agreed to pay off the card and not use it...they have blocked it anyway. I am on a low income and it will take me 4 years or more to pay it off at this rate. Any suggestions? I have bad credit history so I can't transfer it to another card or get a loan.

YorkshireBoy

You have 3 options:

1. Earn more
2. Spend less
3. Restructure the debt

Since you have discounted option 3 (due to a "bad credit history"), you're going to have to go with options 1 & 2.

savingjenny

I think it depends on whether you CAN afford the monthly repayments but are just fed up with them or if you CANT afford the monthly payments in which case you need debt advice. Look on the Debt Free Wannabee forum here.

If you can afford the monthly payments, then I am afraid you "just" need to find ways of saving a bit of money so you can throw extra at it. Every £10 extra this month will not only reduce the amount you owe but also the interest, so the next month that means your £110 will clear even more of the debt. So it's slow at the start but gets quicker and quicker if you keep it up.

jonesMUFCforever

OP if your credit status is that you cannot switch the debt to a cheaper card then paying it off in 4 years or so is the best deal you can expect.

Sorry there is nothing better I can suggest - other than have a clear out and sell items no longer wanted and pay the money towards the debt.

SnowTiger

Missile9 wrote: »

Hi, can anyone give me some advice? I've got a credit card balance of £5,345.39 and have been paying off £100 per month but still being chardged interest of £31.84, even though I have agreed to pay off the card and not use it...they have blocked it anyway. I am on a low income and it will take me 4 years or more to pay it off at this rate. Any suggestions? I have bad credit history so I can't transfer it to another card or get a loan.

I haven't worked it out, but I think it will take you significantly longer than four years to pay it off.

Perhaps your only realistic option is to throw as much money as you can at it. The odd extra tenner here and there will make a difference.