Vanquis Hell

bloc75

Hi,

I made a big mistake after my IVA was cleared 7 years ago, I got a Vanquis credit card. I also split up with my wife 5 years ago, although it kind of started to fall apart 7 years ago.

So I was on a slippery slope.

I now owe £4,000. I do have a decent paid job, but I am just paying the minimum each month, plus I didn't realise that using it to pay petrol during the month would incur a huge purchase interest rate.

My min payments are around £200, and my purchase interests have been £100. I have no clue what my APR is because conveniently they don't show it on their site.

In short they are sub-human scum, but my fault for thinking it would help my credit score.

I basically need some advice on how to get out of this mess.

Sure I could probably afford to pay £500 per month, but am i still going to be getting a charge of £100 per month?

Any advice???

bloc75

I've been told I have a 90% chance of approval at Barclaycard 0% balance transfer. So I'm considering doing that.

CakeCrusader

I'd do a balance transfer for as much as you can to a 0% balance transfer card, and use the interest that you're saving to increase the payment to Vanquis to clear off anything that you can't transfer (or do 2 BT's if you can to 2 0% cards). I had a Vanquis, the interest is eye watering but I can't remember having a surcharge (I did a BT to a 0% card, used the savings to clear the remaining balance )

I hope this makes sense (I'm off to bed). Best of luck!

CakeCrusader

Oh, and always pay more than the minimum balance, as all you're doing is clearing off the monthly interest and a tiny bit of the debt. The more above the minimum you pay, the more of the outstanding balance you clear. A standing order lets you pay £200 monthly for 20 months rather than £200... 195, 187, 167 etc for 50 months, if you see what I mean. You save interest by clearing more of the outstanding balance

bloc75

I've worked it out if I can transfer 4000 to BT, and pay around £400 per month, I can be clear of this debt by September.

[Deleted User]

bloc75 wrote: »

I have no clue what my APR is because conveniently they don't show it on their site.

You'll find your APR on your statements and on your agreement.

They don't show it on their site as yours is just one of dozens of potential APRs. Only the representative headline rate will be displayed.

bloc75

Deleted_User wrote: »

You'll find your APR on your statements and on your agreement.

They don't show it on their site as yours is just one of dozens of potential APRs. Only the representative headline rate will be displayed.

I have electronic only it is not there. I know what I'm going to do and I've got a plan in place. Thanks for the advice.

PeacefulWaters

bloc75 wrote: »

I made a big mistake after my IVA was cleared 7 years ago, I got a Vanquis credit card ... I now owe £4,000.

The big mistake wasn't getting the card. It was using it to spend money you didn't have. Had you simply repeated the cycle of use card>get statement>repay balance in full it wouldn't have cost you a penny and more lenders would consider you for credit.

I do have a decent paid job, but I am just paying the minimum each month

Always pay more than the minimum. Then your credit file won't show you as a minimum payer. Lots is best. £1 extra is better than nothing.

plus I didn't realise that using it to pay petrol during the month would incur a huge purchase interest rate.

Well that one really is on you. Don't pay in full = pay lots of interest = bad idea.

My min payments are around £200, and my purchase interests have been £100. I have no clue what my APR is because conveniently they don't show it on their site.

Look at your statement. It'll be on there, or at least a monthly rate will be. Regardless, it's fairly obvious from the outset that not clearing this brand of card in full is going to be expensive. £100 interest in £4,000 is likely to be somewhere near 33%. I assume you're paying over £100 in interest and the real APR is nearer 40%.

In short they are sub-human scum, but my fault for thinking it would help my credit score.

They offered you are service on terms you agreed. Look in the mirror. Don't blame a lender for doing exactly what they said they'd do. And if you are now 90% likely to get a 0% Barclaycard haven't they dine the job of helping with your credit score?

Sure I could probably afford to pay £500 per month, but am i still going to be getting a charge of £100 per month?

Grit your teeth and do it. Debt free in ten months. £100 of interest will become £90. Then £80. Then £70 ... get the drift?

If you can afford so much, and pay it, you'll be fine.

I've been told I have a 90% chance of approval at Barclaycard 0% balance transfer. So I'm considering doing that.

Don't just consider it then. Get on and do it.

I've worked it out if I can transfer 4000 to BT, and pay around £400 per month, I can be clear of this debt by September.

I'm guessing maths isn't your strong point. I'd say January. But it's £100 a month cheaper than sticking with Vanquis for a similar time period.

Compared to some on here you're well placed to deal with this and get out of it relatively fast. Good luck.
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Also, from the Vanquis web site:

Pay More Than The Minimum Amount
It is important that you always try to pay more than the minimum amount requested on your credit card statement. If you can, try to pay double or triple the minimum amount requested, but any payment over and above the minimum required means you’ll be far better off in the long term. For example if your balance is £1,000, the minimum payment required would probably be in the region of £25. If you only ever pay the minimum it will take a very long time to pay off the amount you owe and cost you more as interest will continue to be added on a daily basis. Your lender may contact you if you regularly only pay the minimum amount. However much more than the minimum you do pay, remember to pay it on time otherwise late fees and charges could be added, creating a larger minimum payment for the next month and a larger late payment charge added to the total again. So, pay more than the minimum amount (as much as you can afford) and pay it promptly.

CakeCrusader

The APR doesn't appear on the statements, they show only a daily APR (helpful, not).

bloc75

Thanks to those who have been helpful, really appreciate it.

bigadaj

CakeCrusader wrote: »

The APR doesn't appear on the statements, they show only a daily APR (helpful, not).

And if you can't work it out from there you shouldn't be allowed anywhere near most financial products.