Cards for low earners

millers11

Hi everyone
A friend of mine is trapped by 2 credit cards - Vanquis and Aqua.
She is up to her limit on both and the interest being charged is horrendous - for example if she makes a payment of £175 her balance only goes down by £50.
In total on both cards she owes £7000.
She doesnt earn much (just £6500) but I need to know are there any cards out there or any government backed help whereby she can consolidate both and make progress when she makes payments instead of seeing very little reduction each month when she is actually making good payments?
Any help or advice would be greatly appreciated
Thank you

Jlawson118

She could look into getting a 0% balance transfer card somewhere and paying it off in monthly instalments? At least she'll still have the debt but she won't be getting the ridiculous interest fees.

I don't think there are any government backed schemes as such, they'll just see her as being bad with credit and she'll just get badgered by the companies until she pays them. I hope she manages to sort something out though!

Anthorn

No government-backed consolidation loan that I know of. But there is plenty of advice and some legislation which might help. It depends on whether she can afford the repayments in addition to everyday living expenses and rent/mortgage. For example, if she can afford the repayments as witnessed by an incoming and outgoing budget, starting a DMP with Stepchange is unlikely to reduce the payments and in addition she will be stuck with the DMP.
https://www.gov.uk/options-for-paying-off-your-debts/overview

She could apply for a 0% balance transfer card which will ease the interest burden but I think she would be better reducing the debt before she applies. Try for a Platinum Low Rate card from Lloyds Bank - the limit is unlikely to cover the whole of the debts but they do have regular 6 months and 9 months 0% BT offers. In these circumstances, every little will help.

[Deleted User]

I'm amazed that between them these 2 cc's gave a limit of £7000, they are both seen as high interest "credit repair" cards.

millers11

Thanks for your comments so far everyone

~Beanie~

venison wrote: »

I'm amazed that between them these 2 cc's gave a limit of £7000, they are both seen as high interest "credit repair" cards.

It's not difficult - my Aqua card started with a £250 limit and following a few increases, is now at £6,400.