2k debt - high interest

Kimmy22

I'm paying off my credit cards slowly but surely. I have £400 on one and £1600 on another but I am being hammered by the interest. I no longer use the cards and would like to pay what I'm owe rather than all the added interest that comes with it. I am in full-time employment and always make the monthly repayments but when I applied for a 0% interest card to balance transfer, the application was declined. I do not want to apply for too many because from what I understand this will not be good for my credit rating. I'd like to know what other options are available to me if any? Many thanks.

[Deleted User]

In the first place, make sure you are paying as much as you can to the one with the highest APR, then the minimum plus £1 on the other.

What do your credit files show?

Kimmy22

Thanks for your help. Last time I checked I had a good credit rating however this was approximately 1 year ago

[Deleted User]

Ignore the rating. You need to check what's on there - eg any missed payments etc.

Foxy-Stoat_3

Kimmy22 wrote: »

I would like to pay what I'm owe rather than all the added interest that comes with it.

I also would like to pay what I owe rather than what I owe plus the interest that is added to my debts that was clearly stated on the application and subsequent credit agreement which I duly accepted and signed.

If you can magically get out of your accepted agreement, do share.

guy_incognito97

Hi

Yesterday I called Barclaycard and asked them to change my apr to a lower rate to help me pay it off. They said yes and I am now going to save hundreds on a balance of only £1200. I suggest you give that a go. Here is how I approached it:

"Hi. I am trying to clear my debts and the interest rate on my card is higher than I would get elsewhere. I have been a customer for X years and I don't really want to go through opening another account and then closing this one so thought I should speak to you first. What can you do to help?"

They put me on hold for 5 minutes then came back with an offer to reduce my apr from 23.9% to 6.9% for 2 years.

I am in the same position of not being able to open a 0% card so this was a very good alternative for me.

The other thing you can do is to try and improve your credit score so that you can apply for a 0% card in a few months.

stator

If you have a good history with your main bank they may offer you a loan to clear the credit cards.

planteria

Foxy-Stoat wrote: »

I also would like to pay what I owe rather than what I owe plus the interest that is added to my debts that was clearly stated on the application and subsequent credit agreement which I duly accepted and signed.

without wanting to be harsh, foxy-stoat does have a point. i don't pay interest, because i clear my balances in full each month. if i didn't, i'd be charged interest, and i would accept that.

in the bigger scheme of things, your balances are not enormous, so i would have thought you just need to tackle your position head on, committed to throw as much at the highest interest card as you can, and then when it's clear move on to the other one.

if you can follow guy_incognito's lead too, even better still...but still channel as much money at the debt as you possibly can..forego some treats, ask other people to wait for payments...whatever it reasonably takes:)

planteria

good point stator, and could help you. but i am not sure it is necessary/worthwhile to move the debt rather than clearing it.