RBS credit card repayments horror

thewiseoldman

My first post so apologies if this topic is covered elsewhere.


Am paying £200 a month via standing order on an £8900 credit card balance. Account hasn't been used for two years as just want to pay off balance.


But about £145 of the £200 is taken as interest so only £55 is deducted from the balance each month.


This seems brutally high.


Any advice?

little_miss_muppet_face

Transfer onto 0% card ?

dotdash79

Pay more, try and transfer some to 0% card. See if you can get a life of balance card?

Have a look at a loan?

What's your credit limit on the card?

thriftylass

But that amount seems right to cover the 17% or similar APR. Agree try and transfer to a 0% card.

thewiseoldman

Poor credit history makes switching cards difficult. Credit limit is about £12000.


Is this amount of interest--over 70%--typical?






Have talked to RBS already at length and its response to requests for interest freeze and such has been a polite but firm No, can't do that...can it?

dotdash79

If you do that you will at risk of defaulting and making you have even more issues around obtaining credit?

What's the interest rates on the card?

Do you have any other cards and what's the outstanding/limit/rate on these?

Also what issues have you got with credit? Missed payments? Arrangement to Pay? Defaults? CCJs?

thriftylass

the interest is not 70%, well it is out of your monthly payment.

Rough calculation:

Your balance is £8900,

guessing an APR of 19% = £1690 per year or £140 per month just in interest.

Credit cards are expensive

I also don't think they would freeze the interest, why would they? They might only consider that in exceptional circumstances, i.e. you couldn't afford your payments due to salary change I think.

could you afford to pay more towards it each month?

CLAPTON

thewiseoldman wrote: »

Poor credit history makes switching cards difficult. Credit limit is about £12000.


Is this amount of interest--over 70%--typical?






Have talked to RBS already at length and its response to requests for interest freeze and such has been a polite but firm No, can't do that...can it?

the percentage 70% is entirely up to you.
you are choosing to pay only just over 2% of the debt : if you pay a lot more then the 70% will fall
so paying 400 per month then the interest is only 36% and the debt will be cleared much more quickly

thewiseoldman

Missed or late payments were main problem. No CCJs or anything that heavy. My bank (Lloyds) froze interest on its credit card balance for a limited time (yet to expire). I chose £200 pcm with RBS as it is affordable and is £20 over minimum payment at present.
Couldn't really afford higher monthly repayments but understand that to do so would improve situation.
Will look again at 0% balance transfers.
Am too old and too limited a financial future to be in this boat!

eskbanker

thewiseoldman wrote: »

Am too old and too limited a financial future to be in this boat!

Were you previously theprofligateyoungman perhaps?

dotdash79

Anything that you can sell to reduce the debt? any extra income you can generate? Are you entitled to any benefits?

As you are making minimum payments to RBS they won't do anything as they can't see you are in distress.