spiral of card charges

shez1987

Hi All a few months ago i started to struggle financially
i managed to catch up and most of the time pay off min payment then use it but then end up going over limit so get charged 12 for going over and 12 late payment.
this month i was due pay doubke coz i just didnt have enough money ive paid last month but dont know how im going to be able to pay another before payday
plus how to get out of this spiral
any tips pls

[Deleted User]

Contact the lender and ask them to freeze the account - this should stop all charges and interest

chattychappy

Sorry to hear of your difficulties. Probably time to review your finances. I suggest you try the DFW board here: http://forums.moneysavingexpert.com/forumdisplay.php?f=76 .

That said, I would comment here as follows.

Your credit files have probably taken a bashing what with the missed payments/over limit fees. If these were first "offences", you could call your CC and ask them to refund the fees, promising you won't do this again. That could be £24 in your favour.

If your problems are long term, then yes you need to approach your CC (and other lenders) and come to a payment plan. It might be better to do this through a debt charity (a proper one). Interest will be frozen and it will be a while before you can get mainstream credit again. But better to have a controlled emergency landing than a crash landing!

[Deleted User]

shez1987 wrote: »

plus how to get out of this spiral. any tips pls

A couple of suggestion come to mind:-

1. Cut up the card and stop spending on the account NOW.

2. Post an SOA (link below) on the Debt Free Wannabe Board, to get advice on reducing your household spending, in order to free up additional funds, with which to overpay, and hence clear, the Credit Card.

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

Choose "Format for MSE", then paste into your post.

Sncjw

You pay off the card then pay the minimum. You then going over the limit. You can’t afford to use the card. Your just digging a bigger hole.

The minimum payment you may as well just throw away because it’s not really paying off the card if your using the card again and the charges added onto it.

Cut the card up so your not using it and get yourself on debt free wannabe.

Dobbibill

shez1987 wrote: »

Hi All a few months ago i started to struggle financially

You know when things changed - you need to address why things changed.

i managed to catch up and most of the time pay off min payment then use it but then end up going over limit so get charged 12 for going over and 12 late payment.
this month i was due pay doubke coz i just didnt have enough money ive paid last month but dont know how im going to be able to pay another before payday
plus how to get out of this spiral
any tips pls

You can't afford to use it - you are digging yourself into deeper debt.

The best tip is, as others have said, to head over to the DFW board and fill out a SOA. You can address your budget realistically going forward.

shez1987

it was an instant change im self employed and lost a weekly amount due to not renewing my contract at renewal.
ive had to use it up to put essential things like gas and elec or fuel to get to work not to pay anything.
im done a budget and i have more than enough coming i have done a budget on an app so hopefully new year fresh start
x

shez1987

i wouldnt mind if i had a lavish lifestyle of constantly going out or buying things i dont need but i dont!

[Deleted User]

I think you would mind even more, if that was the case, because you would feel like a complete tool.

shez1987

im a person of i want it sorting now n i cant its driving me mad
i need to find £250 before 15th january to get on top of it so need to cut back on something ie food shop maybe. as nothing else i can think of

chattychappy

You mention you are self-employed. Are you submitting accounts to HMRC and paying tax? Is somebody doing this for you? If you are due to make a payment on account on 31 January, it may be this can be reduced based on your change of circumstances.