Egg Card Balance Advice

Kimbos2

I currently have a Egg credit card with £500 debt on it. I have had it over a year and have moved into the period of paying interest. My min payments is £11 per month but I currently pay £40 trying to clear it. Unfortunately can't afford £40 per month now as just returned to uni and cannot seem to get accepted for any other 0% balance transfer cards - tried 3 in last month?? Not clever I know

I know it's not sensible to only repay minimum amounts so can anyone suggest other options?

I should add I have a unpaid utility bill on my credit record (which I never recieved after moving flats) , however just recently been accepted for a joint mortgage through nationwide?

Major problem at the moment is that I am not earning as a student.

Any suggestions greatly appreciated!

benf90

You can always change the DD to the minimum amount for now if you can't afford the £40 per month. Remember that you get charged £16 if a DD is returned unpaid so better to have the DD as an amount you know you can afford.

You can make additional payments at any time to your egg card. So whenever you're able to afford it then make a debit card payment to egg to clear some of the balance. The minimum the egg website will accept is £1 - even if its only a small amount then its better than nothing (but always remember these payments are in addition to the DD each month).

Also... is your bank account a student one or just a regular one? It may be worth booking an appointment at your bank to see if you can change to a student account with a 0% overdraft.

wayoflife

Kimbos2 wrote: »

I currently have a Egg credit card with £500 debt on it. I have had it over a year and have moved into the period of paying interest. My min payments is £11 per month but I currently pay £40 trying to clear it. Unfortunately can't afford £40 per month now as just returned to uni and cannot seem to get accepted for any other 0% balance transfer cards - tried 3 in last month?? Not clever I know
Why is everyone obsessed with a 0% balance transfer card! grrrrr! ok I know it sounds like the best option, (which it is for your sort of debt) however, why dont you pick a car with a lower apr than the one you have instead of the 'all or nothing method?' I.e. Barclaycard have a card with 5.9% for the life of the transfer and NO FEE. The fees on a 0% (not typially at least 2.5%) will outweigh the advantage of having 0%

I know it's not sensible to only repay minimum amounts so can anyone suggest other options?
If you have any savings accounts at all then opt for one with monthly paid interest,(HSBC online saver being the best one) this way as soon as the interest comes in, you can pay off your card. Also, as soon as you have any spare cash in your pocket pay it in to your current account and arrange to pay it to your Egg, even if its only a couple of pounds. Youll be amazed at how much this trims your interest down. Always ask for the quickest method of paying to your card.

I should add I have a unpaid utility bill on my credit record (which I never recieved after moving flats) , however just recently been accepted for a joint mortgage through nationwide?

Major problem at the moment is that I am not earning as a student.

Any suggestions greatly appreciated!

The other advice I would give is to contact the utility company and explain what has happened. Say you are not willing to pay the amount off, and you did tell them that you moved house, it has caused you major problems e.t.c. e.t.c. they should arrange for the debt to be written off, (depending on the amount) and ask them for an ammendment on your credit record. Alternatively you can put a note on your credit file, which explains why you have the unpaid payment there.


Alot of people say they cant afford to pay something off, when they actually can. Im not being patronosing and you can clearly see Id like to help, you can do alot to help yourself without worrying.

Write down a detailed list of all the things you spend money on i.e.

Food
Petrol
Car Insurance
Car maintenence
Going out/Entertainment
Stationary
Other

Work out weekly, monthly how much you spend. Then look at this and see where you can cut back. For example spending;

50p a day on a can of coke
going out at £5.00 a week
£5.00 a week on food
Cinema 1x a week at £5.00

you could be paying off over £78.00 a month!!! This will equate to more than this however, as remember you will cut interest aswell as make payments

Sacrifice all this for a couple of months and you will pay the debt off much, much quicker.

Hope this helps, let me know how you get on!!!!!!!!!!

Kimbos2

Hi wayoflife,

I just realised today you had replied with some really good advice! I am going to carry out the steps that you recommended firstly getting in touch with utility company to try and sort out the credit problem.

I'm going to try hard to pay off more of my balance by cutting back on life's luxuries! Bought a flask for tea and saved myself 60p a day for the last 3 weeks- over 5 days a week equals £9 saved already which is getting thrown onto credit card!

Thanks for taking the time to reply

Milarky

I would just point out that Egg's 5 month anniversary deal is suited to anyone with an Egg card balance at standard rates of interest who is only making minimum payments and can arrange to have the existing debt shifted beforehand (eg a helpful relative who can lend the balance amount) It is '0%' but even at the 6.5 rate this actually comes to it compares favourably with 16.9 does it not?