My credit card is killing me

Help_So_confused

I stupidly ran up a lot on my credit card, they kept upping the limit without my asking (thanks for that then!) I'm sure that I had asked them in the past not to increase it anyway at the time I had a great job, however now my circumstances are so different and I struggle to pay the minimum payment of about £250 a month.

The debt is so big that I wouldn't be able to transfer to credit card and as I'm self employed on a low income doubt they would touch me anyway.

I haven't spent on it for a couple of years now but I just don't see the end in sight.

Any suggestions please

[Deleted User]

Throw as much at it as you can.

Vist the DFW board for ways to cut costs.

Have a look at any BT options open to you.

Accept responsibilty for spending the money, rather than blaming the limit increases.

opinions4u

Help_So_confused wrote: »

I stupidly ran up a lot on my credit card, they kept upping the limit without my asking (thanks for that then!) I'm sure that I had asked them in the past not to increase it

A credit limit is not a spending target. It's a choice to use it. There was always the option to ring up and reject any increase.

If you look to own your problem, rather than shift the buck, you might make some progress.

I haven't spent on it for a couple of years now but I just don't see the end in sight.

Any suggestions please

If they try to increase the interest rate, reject it on the basis that you no longer spend on the card.

Visit the Debt-free a Wannabe part of this forum for help on budgeting. The more you pay, the faster the debt will fall.

Good luck.

Gentoo365

How are you paying it now?

Are you defaulting?

Are you taking additional credit/loans elsewhere?

...or are you just cutting back on other spending?

Obviously the best thing to do is pay if if you can. However if you cannot you need to contact the card company. Explain your change of circumstances and see if they can do anything.

One option may be to change it to a long term loan with a fixed interest rate. You will probably end up paying more in the long run, however depending on the difference in rates and the term the payments may be lower. Also, it will get paid off.


Basically you need to contact them and explain that while you are willing to pay if off, you are unable to do so.

Don't complain to them about the credit limit increases though, as by doing so you are implying that you are unable to avoid temptation. You want to make it clear you are willing to work with them to pay the money back.

On your credit card statement there should be some numbers to ring if you are struggling to pay. Numbers for both the bank, and for some helplines.

Paul_the_Painter

There is nothing to stop you transferring PART of your balance to an interest free card, but be careful as some will have a higher minimum payment than you are currently paying. Not a lot of us for your current situation if you transfer say half of the debt, but your minimum payment goes up to a combined £300

p00hsticks

The OP says in their original post that they 'had a great job' at the time they ran up the debt, so it sounds more like that they were simply living beyond their means rather than having to use credit for necessities.

So the comments by dhva and opinions4u that the OP could probably have avoided getting into the situation they are in now by not continually spending up to the limit as it increased and stopping use of the card sooner is perfectly valid, although it doesn't help the OP now.

As opinions4u also says, the best advice for the OP now is probably to go over to the Debt Free Wannabee board, where there are lots of people in the same situation who will be able to advise.

Bex296

Hi! I know how easy it is to fall into the increase trap- because the money is there, you buy something because it's payday next week and you'll pay it back... Or something similar. Only I never paid it back. So while I agree you need to take responsibility, I know how easily it's done and have done it myself, and have one card with a limit of £5700 and two which were both at £1400.

If you can't get a loan/balance transfer, try paying just a little more than the minimum payment if you can afford it. There's a great tool on this site that shows you how long it takes to pay off your debt at minimum payments and how long if you pay a fixed amount each month, and the difference is terrifying and a great motivator. I'm a newbie so can't post the link, but it's easy to search. I've been doing this for a while now and am making progress (slowly- see below!). I also started reducing my limit online each time I made a payment, as it's harder to go back up. So now my limits are £5700 (that one has less interest), £900 and £1000, so I can't spend the extra money because it's not there. Learning self-control is a slow progress, but I've found that limiting the damage I can do has helped!

If you're in real difficulty, try a debt charity for advice (again, some good links on the site).

YorkshireBoy

Bex296 wrote: »

I also started reducing my limit online each time I made a payment

Be very careful when doing this, as it'll increase your credit utilisation, meaning, at it's worst, you'll appear maxed out and struggling to other lenders searching your file.

Far better to find some willpower!

zenthra

the way to avoid the massive debt on credit card situation is to always set up a Direct Debit to pay the full amount each month when you first get the card. that way you can never get into debt with them!

Help_So_confused

Thank you for your words of advice - will power - not my strong point, but no spending on my Credit card for a few years now, so getting a bit better.

I have taken full responsibility for the debt, just annoyed at both the increase in limit and my rubbish financial control/spending, for the last 3 years my wages have been pretty low, at times the min repayment has represented 2 weeks wages but I have never defaulted on a payment.

I shall check out the debt free wannabe board