Desperate to get out of my debt

SLK10

I really need some advise. I have never missed any payments so haven't defaulted. But I am in lots of debt and need to get it cleared as it causing me anxiety. So I called MBNA with whom I have 3 credit cards totalling approx. £8k to explain this. They immediately froze the cards even although I haven't used the cards for spending in a very long time. I usually just balance transfer when they offer a good deal, so now that won't be available anymore which isn't helpful. They also offered a repayment program so that interest would stop but I need to understand how this affects my credit score as I am desperate not to spoil it. Has anyone done this before and how has it affected your ability to get credit. I am NOT looking to obtain more credit but I need my other cards to offer good balance transfer rates in the future. I'm just trying to get out of this mess and will NEVER borrow anymore money! I have enough money to make all my payments and just want to get out of this mess I got myself into when I was on unpaid maternity leave. Most of my 0% deals come to an end at some point this year and I am being declined new balance transfer cards probably because of the cards I already have. My clearscore is 400. I pray that if I keep making all my payments plus an extra £100 per month this will help clear the debt and open up new transfer offers to avoid interest. I also have a few cards with a £0 balance and up to £7500 credit. I don't know whether to cancel these cards but wanted to keep them incase they give me a balance transfer rate, am I doing the right thing? Can anyone give me any advise please?
Thank you all so much. I already feel better by writing this.

Pixie5740

Stop worrying about your credit score. There's no such thing as a universal credit score and no lender using the scores made up by Experian, Noddle or Clear Score. It's your credit history that's important when you apply for credit not the numbers made up by the credit reference agencies and since you never want to obtain credit again your credit history doesn't matter either.

Do you really need to transfer balances in the future? Could you not do with your other card providers what you have done with MBNA and get them to freeze the interest? The result would be more or less the same except you won't have to pay a balance transfer fee.

sourcrates

Balance transfers, are warning signs you cannot handle the debt you are in, its time to stop, and take a long hard look at your situation, before 8k becomes 20k.

If you are struggling to make the minimum payments to your debts, then there are no two ways about it, you are in financial difficulty, and you should seek help on that basis, not keep on trying to balance transfer your way out of trouble, you only prolong the problem, you dont solve it.

Do an SOA, post it up, let us see what your situation actually is, wether it can be sorted by better budget control, or if more formal action is needed to sort out the problem, your credit score, and further borrowing, should be the last thing now on your mind, you are in serious debt, and need to find a way out of that first and foremost.

Link to SOA calculator here :

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

National_Debtline

Hi SLK10


Your credit report (I am loath to say "score" - as others like Pixie will tell you, this is not an absolute measure) is a means to an end, namely the ability to take out further credit.


Therefore your logic seems a little muddled to me as you have stated pretty categorically that you do not want to take out any more credit. Why not simply negotiate with existing providers to freeze interest, and repay what you owe at affordable rates based on your disposable income.


It might be worth talking through your situation with one of the debt advice charities.


Dennis
@natdebtline