credit card- really struggling to make a dent!

michellejm

Before I start, I'd just like to say- yes! I know I've been stupid, but im really trying, and I need some help with this, please.😊

So, when I was young I acted like an idiot and ramped up 15k on a Halifax credit card. I never missed a payment, but was late 5 times and the account was closed. 5 and a bit years later, I've been dilligently paying off the same amount (£330) each month and my balance is now £12990. As my account was closed I get no statements, Halifax say they're electronic but I can't log in and look at them as my account is closed. I spoke to a helpful lady today who told me they can't look back further then 6 months, -and she can't see what my Apr is, but I have paid £1990 over the past 6 months and my balance has gone down by £196. She sounded shocked but just said it'll be the interest. She's trying to get someone to print out and send me some statements so I can try to work it out. I'm honestly at the end of my tether, trying so hard, following the plan of paying a sensible amount each month, but I'm getting nowhere. What am I doing wrong here? The interest calculators say I should be making a dent in my balance but I'm just not. Any help would be really appreciated!

National_Debtline

Hi

If your account was closed it suggests that you defaulted. As that’s a sign of you experiencing financial difficulties I think you should request that Halifax freeze the interest. It’s discretionary but many people have success with negotiating reduced payment plans with frozen interest on the basis that they’re experiencing financial difficulties.

I appreciate that you might be able to afford the payments now but if you have defaulted on the account it’s technically due all at once, so I think you’d have a good case.

James
@natdebtline

bertiewhite

Can you get a loan to pay off the balance?

I was able to get a Tesco Clubcard loan which meant not only am I saving around £150 on the MINIMUM CC payments, I know that the amount will be paid off within 5 years, whereas it might never have been with CC's

michellejm

Thanks James, she said today that if I negotiate the payments my credit history will be ruined. But the thing is, I have no paperwork and it's been closed for nearly 5 years and I don't even know what they've done with my interest. I don't even know the number of my account t as apparently that's changed because my card got lost. Who would I write to to negotiate the interest?

michellejm

bertiewhite wrote: »

Can you get a loan to pay off the balance?

I was able to get a Tesco Clubcard loan which meant not only am I saving around £150 on the MINIMUM CC payments, I know that the amount will be paid off within 5 years, whereas it might never have been with CC's

I really don't know. I could try I guess, but I have lupus and am looking after a autistic daughter, so cant work any more hours and probably don't look like a good prospect for a large loan with this hanging round my neck.

[Deleted User]

Look on your credit files for the account. What is the status?

michellejm

Deleted_User wrote: »

Look on your credit files for the account. What is the status?

It's down as an active account? Not settled.

michellejm

I haven't ever defaulted on payment and only paid a week or so late a few times. I think Halifax just saw me as a risk as my earning dropped when my daughter deteriorated. Understandable, as It's far too much debt. But I don't understand why my Apr has been made so high (although they can't tell me what it is?) I'm confused and need a plan to sort this. Which is hard when I get no statements/paperwork etc!

michellejm

Also, my expiron credit score is excellent, which can't be right as my Halifax debt is out of proportion to my earnings?

DawnW

Surely you have grounds for complaint? They are hardly treating you fairly if they cannot provide you with the APR, accurate statements of what you owe etc :mad:

EssexHebridean

I'm not expert on this - it may be there are others who can give you better advice, but I would get back to the person you spoke with today, and ask that she gives you an address to write to, and a reference to put on the letter. Get the full name of the person you are speaking to, and note the date and time of your conversation. If she says there is no reference to give you because the account is closed, ask politely that she escalates it to her line manager as you need to put correspondence in writing and need to know how to address this. The account may be closed, but it still has an account number, and sort code, applicable to it.

When you write, quote the details of the conversation, including that name. State that you need to know the details of the full amount outstanding, the payments made, and the interest rate applicable.

Generally speaking, a loan to pay off CC debt isn't always a great idea, but in your case it may well be a good way out of the situation you're in.