Can't cope with C/C interest/charges :-(

missshughes

I work around 30 hours per week, rent privately, live alone and take home around £920 a month after tax. There is no overtime at work to bring in more money. I don't claim any benefits (I was told by working tax credit people I am not entitled). I have run up my Vanquis credit card to its £3500 limit over the past year whilst in a relationship (which has now ended) and now I am in a situation that is making me feel sick with worry. I am paying as much as I possibly each month to Vanquis (£200-£300 each month by selling things on Ebay, living on £10 for food each week and not having my heating on over the winter to make these payments). The charges each month are about £150 so I am using £300 a month to reduce my debt by just £150. I have bad credit so I can't get a balance transfer (I tried the 'soft search' and 21 cards gave me 0% chance of being accepted). I don't have anyone who can get a loan on my behalf so I could then repay them instead of the card. I am so sick with worry and stress over this, I don't know what to do to get out of this. Please can someone advise me. Thank you.

Candyapple

If you have cut your budget as low as possible and there is no other way of gaining extra income, all you can do is keep doing what you are doing and paying off large chunks until the debt is paid off. There is no easy solution to it.

Out of the £3.5k spent, is there anything of value you could sell?

Based on this it should take you 15 months to clear.

g6jns_2

missshughes wrote: »

I work around 30 hours per week, rent privately, live alone and take home around £920 a month after tax. There is no overtime at work to bring in more money. I don't claim any benefits (I was told by working tax credit people I am not entitled). I have run up my Vanquis credit card to its £3500 limit over the past year whilst in a relationship (which has now ended) and now I am in a situation that is making me feel sick with worry. I am paying as much as I possibly each month to Vanquis (£200-£300 each month by selling things on Ebay, living on £10 for food each week and not having my heating on over the winter to make these payments). The charges each month are about £150 so I am using £300 a month to reduce my debt by just £150. I have bad credit so I can't get a balance transfer (I tried the 'soft search' and 21 cards gave me 0% chance of being accepted). I don't have anyone who can get a loan on my behalf so I could then repay them instead of the card. I am so sick with worry and stress over this, I don't know what to do to get out of this. Please can someone advise me. Thank you.

Go to the CAB and ask for help.

Candyapple

g6jns wrote: »

Go to the CAB and ask for help.

Realistically, what are the CAB going to do? She will have to book an appointment and take time off work to probably be told to go on a debt management programme.

For such a small debt, that is a bad choice to make especially considering her credit rating will be destroyed for the next 6 years plus the OP is working and already paying off big chunks of it. 15 months of hardship to be debt free surely is the better option and also learning a valuable lesson of never to be in debt again.

OP you will be better off posting on the DFW board and posting up your statement of affairs, they are really good on there regarding ways to cut your budget down even further.

missshughes

Thanks for replying, and for your comments Candyapple.


I suppose I will just have to continue living in virtual poverty to get the debt down and learn a hard lesson as a result!


There's nothing of value to sell - I don't have a car or any modern appliances (my TV is nearly 10 years old, I don't own a smartphone etc). I don't own any jewellery, watches, expensive clothes etc. Just keep having a clear out of old coats, clothes, shoes etc to try and raise an extra £50 a month if possible towards my monthly c/card payment as paying £300 from a £920 wage when my basic essential outgoings are £650 is far from ideal!!!


I'm already on single person's council tax and water tariffs and don't use much electric, so I don't believe I can cut costs any further without resorting to shoplifting or prostitution!!

Foxy-Stoat_3

As you already know, the Vanquis card with its 40% interest rate isn't for credit spending and should only be used for credit building.

The time to address the cause would of been when you realised that you were using it for credit spending.

You may be able to address the effect by getting a lower interest card, try applying for 1 to see if you get declined assuming you havent missed a payment and are on the electrol roll, as it won't do you any harm. Try your own bank, but I wouldn't apply for any more. Maybe Capital One if they offer a balance transfer option.

Luckily your debt is only £3500, a lot of folk come on here with the same story only they have another zero on the end of the debt.

Good luck and keep selling stuff and living as cheap as you can.

soolin

If you are only doing 30 hours a week then you have enough time to try and find a second part time job. It won't be easy running two jobs, but even another 10 hours a week to bring you up to 40 hours would mean a larger chunk of money to throw at the debt.

byjimini

Sorry for asking personal questions, but do you have no family that could get a 0% credit card on your behalf? It may feel humiliating to admit to family about debt, but it's going to clear your debts much faster, and you'll feel the pressure on your shoulders ease off.

If you're doing 30 hours a week, could you not spend the other 10 doing odd-jobs for neighbours, maybe take an evening cleaning job to pay down your debts? I was part time a few years ago (25 hours a week) in a shop and did evenings cleaning a school until I was taken on by the shop full time a year later.

InsideInsurance

Whilst you are making overpayments like you are then there is going to be little incentive for any credit card company to help you.

You could reach out to a debt charity like Step Change but realistically it is going to come down to if you prefer to do what you are doing and get it paid off and preserve your credit history or allow your credit history to be wrecked and then creditors will be more open to negotiating freezing interest etc

Upsidedown_Bear

Do have a look at the Debt Free Wannabe board:
http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=76

This would be a good place to start:
https://forums.moneysavingexpert.com/discussion/4895819

foxtrotoscar_2

Could you maybe get a part time job?