High-interest rate CC debt, now have a good job and want to reduce interest rate

debtless

In a nutshell:

- 5300 on a credit card – 30% interest (HSBC)

- 1300 overdraft – 30% interest (HSBC)

- My salary is paid into a different bank.

- I have been struggling with these debts for years but now I have a good job and I want to pay them off as quickly as possible.

- I have been making aggressive payments since starting my new job but the appalling interest rate is really eating into my progress.

- I had to make a repayment arrangement with Wonga in February (before I had my current job).

What is the best way to reduce the interest on my debts and so speed up my repayment? Consolidation loans? Balance transfer? Does the Wonga arrangement make this impossible?

Coincidentally, NatWest offered me a credit card with a 1600 limit – but only “in principle” (not credit-checked yet) and it’s nowhere near the 5300 I need.

I want to pay these debts off as quickly as possible!

Thank you kindly for any advice!

_Andy_

With a recent arrangement on file no high street lender is going to approve any lending for you.

izools

HSBC don't charge 30% on their overdrafts.

debtless

Thanks for the replies -- you're right, the overdraft is actually something like 19.9% -- my mistake! The CC is definitely 29.9% though.

Can anyone suggest approximately how much time has to elapse before I am eligible for a balance transfer or consolidation loan with a reasonable rate? Even with my aggressive payments, with my current interest rates I will still be in debt one year from now -- though much less of course :-)

Thanks again!

CLAPTON

check you credit files and see what they say

if you can get 1600 CC at a low rate then take it; better that than 1600 at 29%

NPHammer

Wonga loan on credit file? Bad news.

Arrangement to pay with Wonga on Credit File? Terrible news!

I personally would say you are looking at years rather than months before you would be approved by any lender offering a lengthy balance transfer or attractive rate on a loan for consolidation with this on your file. Being new in your job wont help either.

One glimmer of hope is in checking your Credit Files with all 3 agencies. I believe Wonga only report to Experian and Call Credit so your Equifax file may be ok.

If it is you could try Creation / Sygma bank cards, they also provide the Asda card which offers 12 months 0% on balance transfers for a 3% fee which is the best balance transfer card Creation offer.

They are the only semi decent credit card company I am aware of who only search Equifax.

debtless

Thanks for the tips, everyone. After careful consideration I have decided to apply for the Sygma Bank Balance transfer credit card.

Question: they want the name of the company which employs me, which is fair enough, but will they contact them without my permission?

You-kip

debtless wrote: »

Thanks for the tips, everyone. After careful consideration I have decided to apply for the Sygma Bank Balance transfer credit card.

Question: they want the name of the company which employs me, which is fair enough, but will they contact them without my permission?

Yes they will if they decide they want to but very unlikely.
Why would they need your permission when it's their money they're lending you.