Credit Card Problems

colinisla1980

Hello, I have got myself into some issues with my credit cards . I have around 22k on cards and the minimum payments are around 650 a month , which is really affecting my family life. I have a good salary but I have not got a poor credit rating because of these cards, is there any advice on how I can reduce these payments, I am due to receive a big bonus from work in 6 months so this should help.


thanks in advance

[Deleted User]

If you can't get a BT offer, then you need to pay as much as you can to the one with the highest rate, and pay minimums plus £1 on the others.

Vist the DFW board for advice on how to cut costs so you can pay more.

colinisla1980

thanks, will look into, is there any way I can reduce monthly payments ?

[Deleted User]

Only practical way is by transferring to a lower rate card/loan or getting a BT offer.

The other way involves trashing your credit file, which should be avoided.

Who are your cards with? And what are the rates and balances?

colinisla1980

thanks for your time


NatWest 5k
Lloyds £7.3k
Barclaycard £10.5k


not sure of the interest rates

[Deleted User]

Barclaycarad are a fairly soft touch and MAY lower your interest rates if you ask. However, it's a big balance, so they may well figure you don't have any options.

You need to find out the rates so you know where to best put your money.

CLAPTON

colinisla1980 wrote: »

thanks for your time


NatWest 5k
Lloyds £7.3k
Barclaycard £10.5k


not sure of the interest rates

have you stopped spending on the cards?
have you set up detailed budget
try keeping a spending diary to note down every spend and so determine where the money goes.

as already said pay the max you can on the card with the highest APR and only the minimum (plus £1) on the others
have you tried to get a 0% BT card?

colinisla1980

thanks i will check %rates tonight

i have not spent on the cards for 6 months, i had an issue with gambling online, which i am addressing, i feel like an idiot but i have to deal with it now.

thanks for all your advice

grumbler

colinisla1980 wrote: »

I have around 22k on cards and the minimum payments are around 650 a month , .... I have a good salary ... how I can reduce these payments...

colinisla1980 wrote: »

...is there any way I can reduce monthly payments ?

colinisla1980 wrote: »

not sure of the interest rates

Well, you want to reduce the interest (that you don't even know) in the first place, not the minimum payments:

• Minimum Repayments

With £22K debt you need a really good salary to transfer even a part of your debt to 0%, but you can try:

• 0% Credit Cards

You can find a 'soft' eligibility checker there, as well as on come CC companies' websites.

chattychappy

colinisla1980 wrote: »

thanks, will look into, is there any way I can reduce monthly payments ?

Be careful for what you wish for. You need to look at your monthly spending and frankly that includes interest you are paying on the debt.

If you were able to reduce your monthly payments without reducing your spending (inc interest) then as your debt increases, so would your interest bill. Your required minimum payments would then start rising again.

In summary, you need to:
1) reduce your spending
2) reduce your interest if possible (by moving debt)*
3) apply your payments to the most expensive debt first whilst meeting minimums (+£1) on other debts
4) increase your payments if possible. Eg increase your income, sell unwanted stuff...

*if you have a partner with a good rating, they might be able to take a new CC with a 0% BT offer. They would become legally responsible for the transferred debt but you could still make the payments. This woud reduce the interest bill. Of course, they might be well advised not to agree to this!

Nothing much new in my post, I fear.