£55k credit card debt-seeking advice

kmswing

Hello and thank you for your time,

I am a sports professional and after a particularly bad season with injury I have about £55k of credit card debt from expenses (travel, hotels, etc). I am paying about £1300 a month in minimum payments (£900 of which is interest).

I am reluctant to call the lenders because my credit rating is still good ish (900) as I haven’t missed a payment but I am really struggling to keep up. (I have been advised as soon as I tell them I’m struggling to make payment it will effect my credit) I would love to consolidate it into one loan at a lower rate. Currently I’m paying about 20%apr on average across my cards. Although in the last 6 months two of them have put the rates up from about 20% to 28% which is extra scary.

Using the eligibility checker on this site nobody is willing to lend to me currently. I am conscious that this is a credit card search and of course I’m unlikely to be eligible with my current borrowing situation. Is there another type of loan I might be able to get?

I am protecting my credit and avoiding companies like step change because I believe it will effect me for years to come? I will struggle with a mortgage etc.

I could currently turn my situation around with a good result or two, now I am fit, but if I sign up to step change I feel I am resigning to the fact I am stuck for years...?

The pressure of this financial situation isn’t helping my sporting performance either though..

Does anyone have any advice?

Many thanks and best regards.

cajef

You would be better off posting this in the credit card board.

https://forums.moneysavingexpert.com/forumdisplay.php?f=11

Nile

Hi, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.

I’ve moved your thread from the ‘I wanna’ board to the ‘Credit Cards’ board, where it is better suited.

Regards

Nile

[Deleted User]

Ignore your credit score and rating.

Post a SOA on the DFW board to see where cut backs can be made for you to pay the debts off quicker.

Failing that do speak to StepChange for help and advice

BoGoF

In all honesty you won't have many, if any, options. Any attempt at approaching the card companies for help will affect your ability to get credit in the future.

Sometimes you have just got to take it on the chin and approach step change or similar and see what they say. Sounds like you can't carry on as is......nobody is going to lend you money.

cymruchris

It's likely that the reason the rates were put up, was because your credit profile according to those institutions was deteriorating. Depending on how many cards you have, you may well find others will follow suit in due course while your balances to credit limit ratios are high. If you're not on a fixed income, the reality is you need to make some drastic cutbacks. I'm sure that as a professional - you always want to put on a good show - and let people think you're leading the good life, and are very successful, but as you say with an injury money stops flowing. You need to be realistic - and not worry what people think - and begin cutting back on all but essential expenditure - if you're booking top-notch hotels as part of your schedule, cut them back to budget hotels and take taxis to wherever you need to be instead. (I worked for a company once that put us up in decent enough but very cheap hotels, and would then taxi us to the lobby of a posh hotel to meet clients - so in their eyes we were living the good life, but in fact we were being very cost conscious). If by making cutbacks you can't make a dent in your balances - then the next step is going to be more drastic, and most likely telling the card companies that you're struggling or go to step-change for help. In your current situation, it's likely nobody will lend you anything other than another high rate credit card which will put you into deeper trouble.

kazwookie

kmswing wrote: »

Hello and thank you for your time,

I am a sports professional and after a particularly bad season with injury I have about £55k of credit card debt from expenses (travel, hotels, etc). I am paying about £1300 a month in minimum payments (£900 of which is interest).

I am reluctant to call the lenders because my credit rating is still good ish (900) as I haven’t missed a payment but I am really struggling to keep up. (I have been advised as soon as I tell them I’m struggling to make payment it will effect my credit) I would love to consolidate it into one loan at a lower rate. Currently I’m paying about 20%apr on average across my cards. Although in the last 6 months two of them have put the rates up from about 20% to 28% which is extra scary.

Using the eligibility checker on this site nobody is willing to lend to me currently. I am conscious that this is a credit card search and of course I’m unlikely to be eligible with my current borrowing situation. Is there another type of loan I might be able to get?

I am protecting my credit and avoiding companies like step change because I believe it will effect me for years to come? I will struggle with a mortgage etc.

I could currently turn my situation around with a good result or two, now I am fit, but if I sign up to step change I feel I am resigning to the fact I am stuck for years...?

The pressure of this financial situation isn’t helping my sporting performance either though..

Does anyone have any advice?

Many thanks and best regards.

You need a reality check.

Are you now fit enough to return to your sport? if not how much longer (roughly) before you are?
Are you when fit going to be able to return to your sport ie you haven't been replaced?

You need to start talking to the agencies like step change who can help you, you might not want to, but you have very very few options.

How have you racked up this debt,? do you have anything you can sell?

As already suggested post up a SOA os people can make suggestions, to help you cut your spending.

ie how much is your phone worth? how much is the package each month? May be sell the phone and cut the package.

Terry_Towelling

Seems a bit foolhardy for a sports professional not to have some kind of income protection insurance (if such exists in your sport - whatever that is; you have carefully chosen not to say, but your username suggests you were thinking of golf when you wrote your post). Also seems a bit strange to have been travelling and staying away so much when you were injured and couldn't compete.

Keep plugging away and hope for better next season.

18cc

one opton is to go bankrupt but obviously there are consequences.

speak to stepchange

jonesMUFCforever

Not more school holidays - will they never end?

meer53

If you're only paying the minimum on your cards, things are only going to get worse for you. The new persistent debt changes, which all lenders have signed up for, probably means your rates will increase slowly, along with your minimum payments.

You need to speak to someone as soon as possible, whether that's the card issuers or Stepchange is your choice. Surely sorting this out will mean you can focus more on your job ? Worrying about it will have the opposite effect.