barclaycard and overdraft

johndawgylt

I have a £5000 barclaycard and nearly £5,000 TSB overdraft – I’mtrying to get a loan or a new credit card to pay it all off and start payingback monthly, but using both eligibility checkers Martin provided, I’m 0%chance for both. How do I get out ofthis mess? No one is willing to help.

grumbler

johndawgylt wrote: »

I have a £5000 barclaycard and nearly £5,000 TSB overdraft – I’mtrying to get a loan or a new credit card to pay it all off and start payingback monthly,

What stops you from paying back monthly now?
A loan or a new card can help only if the interest rate is lower than of you existing debts.

but using both eligibility checkers Martin provided, I’m 0%chance for both. How do I get out ofthis mess?

The only way is to earn more and to spend less then. Start with posting your SOA on the DFW board:
DFW Newbies: Where to start, Challenges, SOAs, ...

No one is willing to help.

Banks exist to make profit from you, not to help you.

johndawgylt

grumbler wrote: »

What stops you from paying back monthly now?
A loan or a new card can help only if the interest rate is smaller than of you existing debts.

The only way is to earn more and to spend less then. Start with posting your SOA on the DFW board:
DFW Newbies: Where to start, Challenges, SOAs, ...
Banks exist to make profit from you, not to help you.

I pay back £150 a month to my overdraft, but over half of it covers the interest.

I'm currently paying £0 to Barclaycard, I'm waiting on them phoning me after sending some threatening letters (they placed my account on a cooling period of a month and I've heard nothing since).

Earn more, spend less - seems simple but it's far from simple. I still want a normal life, I'm a young guy. If I could somehow get a £10 loan at a small % interest, I could pay them both off and pay £250-£300 a month to that, but I cant get a loan or other credit card anywhere!

Tixy

johndawgylt wrote: »

I pay back £150 a month to my overdraft, but over half of it covers the interest.

I'm currently paying £0 to Barclaycard, I'm waiting on them phoning me after sending some threatening letters (they placed my account on a cooling period of a month and I've heard nothing since).

Earn more, spend less - seems simple but it's far from simple. I still want a normal life, I'm a young guy. If I could somehow get a £10 loan at a small % interest, I could pay them both off and pay £250-£300 a month to that, but I cant get a loan or other credit card anywhere!

If you have missed recent payments to the barclaycard then to any other potential lender you will look like a high risk customer.
They'll think you cannot afford, or won't, pay them back either.

At some point you have spent a a lot more than you have earned, and so to pay off the debts you are going to have to tip the balance in the other direction.

As it looks like you can afford the minimums to each of these debts the choices are
-to carry on as you are, with the current debts you have
- or make some lifestyle changes and get the debts cleared off quicker, hoping that once you have made a sizeable dent in the debt that you may be able to refinance some of it to a cheaper rate

The second option will get you debt free quicker and reduce the amount of interest you pay overall.

Posting on the DFW section of the forum may still help you. People there may be able to suggest cost savings your can make to your outgoings without making much difference to your lifestyle.

Candyapple

Young or not, you have to learn to prioritise what you want out of life. Do you want to still be in debt when you are 30, 40, 50 because you can't make changes in your lifestyle now?

For you to be £10k in debt and wanting another £10k loan, you would need to be earning £40k+ do you earn this much?

Also if your Barclaycard account has incurred late payments/defaulted etc. your credit is going to be pretty much shot so no chance of getting any 0% balance transfer cards. As grumbler stated, no easy way out except increase your income and decrease your outgoings.

Post up a thread on the DFW board with your statement of affairs and lots of people will offer you advice on ways to cut down your spending so you can throw more money at clearing your debts. Good luck.

johndawgylt

Tixy wrote: »

If you have missed recent payments to the barclaycard then to any other potential lender you will look like a high risk customer.
They'll think you cannot afford, or won't, pay them back either.

At some point you have spent a a lot more than you have earned, and so to pay off the debts you are going to have to tip the balance in the other direction.

As it looks like you can afford the minimums to each of these debts the choices are
-to carry on as you are, with the current debts you have
- or make some lifestyle changes and get the debts cleared off quicker, hoping that once you have made a sizeable dent in the debt that you may be able to refinance some of it to a cheaper rate

The second option will get you debt free quicker and reduce the amount of interest you pay overall.

Posting on the DFW section of the forum may still help you. People there may be able to suggest cost savings your can make to your outgoings without making much difference to your lifestyle.

I cant afford the minimums to each, Barclaycard are wanting over £300 a month, and TSB £150 - just about all of that is interest.

I've got a new bank account that my wages are paid into, so they don't get swallowed.

I'm sick of paying all this interest its just getting me into a deeper hole and no one wants to help. I'm not willing to be a hermit for the rest of my life to service bank debt that is huge in interest.

Looks like im stuck. Thanks anyway

Tixy

johndawgylt wrote: »

I cant afford the minimums to each, Barclaycard are wanting over £300 a month, and TSB £150 - just about all of that is interest.

I've got a new bank account that my wages are paid into, so they don't get swallowed.

I'm sick of paying all this interest its just getting me into a deeper hole and no one wants to help. I'm not willing to be a hermit for the rest of my life to service bank debt that is huge in interest.

Looks like im stuck. Thanks anyway

If you cannot afford minimum payments then you could possibly consider contacting one of the debt advice charities and consider setting up a debt management plan - on this the charity will work with you to set a budget and see what you can afford a month to your debts, you pay them and they split it between your creditors and ask your creditors to considering freezing interest.

But that will have a long term effect on your credit file and the budget will be fairly limited.

If you post a statement of affairs on the DFW section people will be able to advise if you this may be a suitable option for you and whether your creditors would be likely to accept a DMP.

johndawgylt

Tixy wrote: »

If you cannot afford minimum payments then you could possibly consider contacting one of the debt advice charities and consider setting up a debt management plan - on this the charity will work with you to set a budget and see what you can afford a month to your debts, you pay them and they split it between your creditors and ask your creditors to considering freezing interest.

But that will have a long term effect on your credit file and the budget will be fairly limited.

If you post a statement of affairs on the DFW section people will be able to advise if you this may be a suitable option for you and whether your creditors would be likely to accept a DMP.

I'm stuck between a rock and a hard place - if I 'spent way more than I earned' like you stated in your previous post, why did the banks give me that amount then? Why aren't they willing to give me that now to get out of this hole?

I'm sick of it and how the bank treats people, something needs to be done about it! That's why the nation is in the state it's in.

I'm not willing to stay in every night, spend nothing, and pay back the crooks because of a mistake when I was younger.

There is no help for anyone in this position

grumbler

johndawgylt wrote: »

I'm stuck between a rock and a hard place - if I 'spent way more than I earned' like you stated in your previous post, why did the banks give me that amount then?

To make money from you - as said above.

Why aren't they willing to give me that now to get out of this hole?

Firstly, this means making less money and it isn't in their interests to help you to get out of the hole.
Secondly, now they know that you are a risky customer and they are unlikely to lend you more and and at lower rate. The higher the risk that higher the rate - it's the basic law of finance.

I'm sick of it and how the bank treats people, something needs to be done about it! That's why the nation is in the state it's in.

What about irresponsible borrowing and spending?

I'm not willing to stay in every night, spend nothing, and pay back the crooks because of a mistake when I was younger.

Well, the adult life is full of tough decisions. The fact is that you can't keep the lifestyle you want without paying the debt off. And the sooner you pay it off the lees it will cost you in total.

There is no help for anyone in this position

Who is supposed to help and how? There are plenty of options like IVA, DMP, bankruptcy etc., but all reasonably expect that all your money left after the essential living expenses goes to repaying the debts.

Lawa

Sorry but stop acting like a child.

You made thr choice to spend they just gave you the rope to hang yourself with.

Take me fopr example I have 15k worth of debt and found out todayI still have 10k avaible credit on cards. Now whos fault would it be if i got mysef in 25K worth of debt.

Spend less you can go out and have a good time on less. You enjoy going out drinking more if you do it less as it will be a treat.

Stopping paying your barclycard yo uhave got yourself in more trouble. Ring them and explain the situation or speak weith one f the debt charaties

johndawgylt

Lawa wrote: »

Sorry but stop acting like a child.

You made thr choice to spend they just gave you the rope to hang yourself with.

Take me fopr example I have 15k worth of debt and found out todayI still have 10k avaible credit on cards. Now whos fault would it be if i got mysef in 25K worth of debt.

Spend less you can go out and have a good time on less. You enjoy going out drinking more if you do it less as it will be a treat.

Stopping paying your barclycard yo uhave got yourself in more trouble. Ring them and explain the situation or speak weith one f the debt charaties

Exactly why it took me a while to come on and even post about my issues, idiots like you who talk down to folk.

I watch Martin's show, and it's all great. But in reality, nothing ever changes.

PS: What's a charaties?