Credit Card Advice

Smivvers20

Hi All


I have got 2 credit cards that have large balances, and I have recently had to take a lower paid job further away (so less salary, more petrol).


I need to get this sorted as I am currently paying over £500 a month to them (which is 1/3 of my salary) and it is not making a dent.


Virgin Card


I have £6,978.48 on this charged at 17.48% and £5,190 at 0% until September 2018. Currently paying just over £200 a month as minimum payment.


Barclaycard

This is who I bank with. Debt is £13,045.20 at 13.08%. Again paying around £300 a month which is just over minimum payment.


I have asked both if they could stop interest on the cards for a short while but Virgin has said no chance, and Barclaycard have asked me to phone and discuss my outgoings.


My partner (we have a mortgage together etc.) has said he would get a 0% CC out to do a balance transfer and I just pay towards that, but I don't think he will get the full amount I need to pay off both cards (he is self employed) plus I feel awful he is having too.


Is there another way? I don't think I would be able to get another CC out to transfer the balance of both, I mean my credit rating is good, I don't miss payments. Would I just do the Virgin one as its the higher APR if I did manage to get one?


I really want to try and sort by myself as I was the one that spent the money (even though it was for our new house etc. I used the cards).


Thank you in advance


(p.s. I have cut up both cards, and disassociated them with any online accounts - PayPal, Amazon etc.)

PeacefulWaters

I'd suggest posting on the Debt-free Wannabe board, including a statement of affairs.
http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=76

Asking lenders to waive interest can negatively impact your credit file if they agree to it. I'd suggest a last resort.

I would include your other half in any discussion around this as he is almost certainly financially associated to you. Damage your credit file and you damage his. Let's face it, if he borrows without discussion while you're dealing with this it'll be a tough thing to accept. His 0% card idea has merit. Some debt reduced to interest free is better than no debt.

Good luck trying to resolve things. If you have any spare cash after minimum payments throw it at the most expensive APR first.

Smivvers20

Thank you. What do you mean "if he borrows without discussion"?


He doesn't have any loans or credit cards and would only get it out to transfer the balance.


I budget so know what spare cash we have (none!) so don't really need to do a SOA but thank you I really appreciate you replying

PeacefulWaters

Smivvers20 wrote: »

Thank you. What do you mean "if he borrows without discussion"?

I wrote that in the context of you dealing with things by yourself. Then realised that you are talking to him about it and forgot to change what I'd typed.

eskbanker

Smivvers20 wrote: »

I budget so know what spare cash we have (none!) so don't really need to do a SOA but thank you I really appreciate you replying

I think the steer towards the DFW board was more to do with trying to encourage you to understand the scale of the issue you're facing, rather than to finesse your budgeting capabilities.

Based on the figures in your OP, you owe £25K but only have an annual salary of £18K (net perhaps?), and 20% of your debt starts incurring interest in a few months so things will be getting worse in the foreseeable future.

Having the good folk of the DFW board review your spending (in a non-judgemental way) has proved a valuable exercise for many others who are/were in substantial debt and for whom the only real answers are to earn more and/or spend less.

Your desire to sort this out yourself is admirable but realistically it needs radical steps to make a difference as there aren't any quick or easy shortcuts....

dresdendave

eskbanker wrote: »

Having the good folk of the DFW board review your spending (in a non-judgemental way) has proved a valuable exercise for many others who are/were in substantial debt and for whom the only real answers are to earn more and/or spend less.

...

I second this. Many people think they have no scope for reducing their spending any further but usually the DFW folks will find extra savings by reviewing outgoings from a detached perspective.

Candyapple

Smivvers20 wrote: »

I really want to try and sort by myself as I was the one that spent the money (even though it was for our new house etc. I used the cards).

So you spent £20k on your credit cards buying stuff for your new home that both you and your partner have a mortgage together on, but somehow you think only you should be shouldering this debt? :huh:

Smivvers20 wrote: »

He doesn't have any loans or credit cards and would only get it out to transfer the balance.

Sounds like his credit history will be slim to none then = no chance of him getting a 0% card. He could always try putting his details into the eligibility checker to see:

https://creditcards.moneysavingexpert.com/?balance-transfer&_ga=2.106839563.90571393.1523535212-1900589276.1523535212

I have to ask, you spent £20k on credit cards with high APRs. Did you not factor into your decision before spending the money how you would pay it back before incurring lots of interest?

Your only solutions are:
1. Your partner applies for a card or several balance transfer cards to put as much of the debt onto 0% and then both of you make sure you clear this debt within the time frame.

2. If your partner can't get a card, you need to either find a better paying job, or get a second job, and just suck it up and pay as much extra towards the debt as you can. Regardless of how long it takes you to clear, think of it as an expensive life lesson.

3. Same as number 2 except your partner pays his half too given that you bought things for your home.