fed up with debt

mikey_e

Hi,

So i have a credit card that is maxed out at £1200 and a £500 pay day loan . i want to open up a 0% transfer credit card and put the £1200 in and pay that off over a year, the problem is the pay day loan! is it possible to put that on the 0% card as well or whats the deal? I have defiantly learnt my lesson about berrying my head in the sand about debt and just want to be free from it!

Any advice / experience will be much appreciated!

Thanks

M

forgotmyname

If your using payday loans the chance of a 0% card maybe slim to none.

Add a CC thats upto its limit and they wonder how will you be able to afford to pay them if you decide to spend more.

They see that as a risk. You may say your paying them off and spending more.

Post your statement of affairs on the debt free board and they will advise on where you can cut costs and the best approach.

YorkshireBoy

With a low limit card maxed out and a payday loan showing on your credit files your chances of getting a 0% prime card will be slim I'd imagine.

That said, you have two options:

1. Get an MBNA card and BT the credit card debt, then MT (that's a money transfer) the payday loan via a transfer to your current account. Both BT and MT are 0% for x months. Details on their website.

2. Get a 0% on purchases card and put your normal spending (supermarket shopping and fuel) on there. Pay only the minimum payment (1%) and transfer the rest (99%) to your payday loan.

Good luck. I think you'll need it!

grumbler

YorkshireBoy wrote: »

With ... a payday loan showing on your credit files...

Does it really show as a payday loan? Unless the APR is visible, how can they know that it's payday?

YorkshireBoy

grumbler wrote: »

Does it really show as a payday loan? Unless the APR is visible, how can they know that it's payday?

Whilst I don't think it's listed under the heading "payday loan" (I forget now how I've seen it described...thankfully I've never had one), I understand it's pretty easy for lenders to identify such loans (maybe frequency, number (eg rollovers sometimes/often mean a new credit agreement is drawn up), loan amount, payment amount, etc).

Aquamania

mikey_e wrote: »

Hi,

So i have a credit card that is maxed out at £1200 and a £500 pay day loan . i want to open up a 0% transfer credit card and put the £1200 in and pay that off over a year, the problem is the pay day loan! is it possible to put that on the 0% card as well or whats the deal? I have defiantly learnt my lesson about berrying my head in the sand about debt and just want to be free from it!

Any advice / experience will be much appreciated!

Thanks

M

Post you SoA on the Debt Free Wannabe board.
(Details on the board on how to do that)
I'm sure you will get some really advice there.

Trying to obtain more credit when you are already sinking in debt is not usually the best way to proceed, unless strictly managed even if done with the best intentions (you have already demonstrated you are not able to carefully manage debt alone)

You do not have a good credit history and so, as you have know, you may find difficulty obtaining more credit (especially at 0%) anyway

rehanmalik3030

mikey_e wrote: »

Hi,

So i have a credit card that is maxed out at £1200 and a £500 pay day loan . i want to open up a 0% transfer credit card and put the £1200 in and pay that off over a year, the problem is the pay day loan! is it possible to put that on the 0% card as well or whats the deal? I have defiantly learnt my lesson about berrying my head in the sand about debt and just want to be free from it!

Any advice / experience will be much appreciated!

Thanks

M

For a start forget about applying for another credit card. You will not get one and adversely have a negative impact on your credit file.

The important figure in order to help you is what is your net income per month and essential expenditure before paying any debts??

moohound

grumbler wrote: »

Does it really show as a payday loan? Unless the APR is visible, how can they know that it's payday?

On Noddle there is a section for 'Short Term Loans' maybe thats for PDLs

planteria

YorkshireBoy wrote: »

2. Get a 0% on purchases card and put your normal spending (supermarket shopping and fuel) on there. Pay only the minimum payment (1%) and transfer the rest (99%) to your payday loan.

Good luck. I think you'll need it!

i think this is option is most likely. good luck mikey_e. the main thing is to tackle this challenge head on. juggle where your debt is, to your advantage, as best you can. and don't delay throwing as much money as you can claw together at the debt with the highest interest rate. for £500 i would be speaking to friends & family to try to get rid of the PDL's interest rate altogether.

Consumerist

grumbler wrote: »

Does it really show as a payday loan? Unless the APR is visible, how can they know that it's payday?

On my credit report (Noddle), each lender is identified so I would imagine a pay-day lender could be easily identified by name coupled with a small value loan which mainstream banks wouldn't even entertain.

YorkshireBoy

Consumerist wrote: »

On my credit report (Noddle), each lender is identified so I would imagine a pay-day lender could be easily identified by name

The lender's name isn't visible to other lenders when searching your file. Only you and the CRA can see who it is.