Tooo much credit

Katie_Herbert

Hello

Please could someone advise me. I have quite a few credit cards that I pay interest on. I have a good credit rating, however I've tried to get a new credit card that will enable me to do a balance transfer to give me release of paying interest. I've not been excepted my any card companys as I have too much debt on my file. Does anyone know a way round this? I'm not using the new card to get new debt, I just want to use it as a balance transfer to help me pay some debt off without Paying loads of interest and it never getting lower 😩

Thanks

sourcrates

Hi,

Balance transfers, consolidation, are all signs that you might be in financial difficulties.

You need to stop looking at this from the perspective of further borrowing, which is essentially what your doing, post an SOA see where your money is going.

Perhaps you need to admit you've borrowed too much and need a debt soloution, your SOA will tell us.

EssexHebridean

Yes - the way round it is incredibly simple. There's a few steps to it:

- Cut up your existing cards
- Put together your SOA as Sourcrates says - you'll find the link in the "sticky" thread at the top of this board
- review your income and outgoings, make sure everything is accurate, and establish how much of a surplus you have each month - you can post the SOA into here ("format for MSE") if that helps - you'll be amazed where we can find savings you may not have thought of!
- throw that surplus plus anything else you can save at the highest interest card first
- one that first card is cleared, close the account and turn your attention to the next highest interest card
- repeat until debt free
- continue to work to budget, only now your surplus goes to savings, and you have your money working for you, rather than you just working to pay off debt.

It might be sensible at some stage in the process to think about 0% cards, but first you need to prioritise budgeting, otherwise you're moving the problem, not dealing with it.

ReadingTim

Spend less than you earn. Then find ways to:

-spend less
-earn more

It really is that simple.

Ilona

Hello Katie.
A few thoughts in red.

Katie_Herbert wrote: »

Hello

Please could someone advise me. I have quite a few credit cards that I pay interest on. Why have you got a few, how many have you got? Did you max out on some and applied for more? Is your spending out of control? I have a good credit rating, however I've tried to get a new credit card that will enable me to do a balance transfer to give me release of paying interest. Didn't you realize that you might have to pay interest at some point? I've not been excepted my any card companys as I have too much debt on my file. Does anyone know a way round this? Yes, don't spend more than you earn. I'm not using the new card to get new debt, How will lenders know that, given you already show you spend more than you earn? I just want to use it as a balance transfer to help me pay some debt off without Paying loads of interest and it never getting lower 😩

Thanks

As has been mentioned above you need to get to grips why you are spending too much money. I suggest you destroy the majority of your cards and write to the providers that you are closing the account.

Then sit down with your statements, bills, bank accounts etc, and fill out a Statement of Affairs. This will show why you are struggling. The good people on here can advise ways of cutting down your expenditure so you can throw more at your debts.

http://www.stoozing.com/calculator/soa.php

This is fixable, but will not go away on it's own, or if you patch your finances up with sticking plaster. Give it a try.

Ilona

enthusiasticsaver

You are probably failing the affordability test if you have a lot of cards. As others have said there is no easy way out of debt. Just getting more and more cards is a recipe for disaster. Are you paying more than minimums on each card?