Very New Newbie

Plastic_is_Drastic

Hi all

Have been lurking here for the last few days and have found out a lot of useful stuff and information, but thought I'd register and post a few queries of my own that I haven't been able to find answers for.

I've had a little wobble on the employment front in the last couple of months - now sorted, and start new job on Monday, plus I have a self-employment sideline that suddenly seems to be expanding very well. I have always been able to service my debts (all CC's and one OD), never missed payment or been late. Trouble is, the recent weeks of missing a wage caused me a few worries about whether I would be able to make the next payments (I will)... And which caused me to finally take in just how much debt I've built up on those hideous credit cards - 19.5K over five cards, plus a £950 OD limit which gets used up most months.

And all built up in around 5 years.

Earlier this year, I started to snowball - I didn't have a lot of spare income, but managed to clear the smallest card just before my recent jobless period - of course, I've now run it up again. All my cards are pretty much maxed out, so couldn't use them even if I wanted to.

Hopefully as my income has improved I will be able to start the snowballing again in the New Year, although it will be a long haul - I'm used to working on a tight budget and living fairly frugally when I have to.

What is really stressing me out, though (apart from how much I owe) is the unknown. After years of card companies increasing my credit limit without me asking, one of my cards has reduced down to my spend level (effectively maxing it out), even though it was only this year that it put my limit up. This leads me to my question - do they ever ask reduce the credit limit below the borrowing, so you'd effectively have to pay a lump or even all of the debt in one go? I'm assuming that as long as they're getting paid, they wouldn't do this as I'm a good little earner for them, am I right? Similarly, my OD - I do want to get back in the black, but I need the facility at the moment.

Sorry for the long post, will probably have some more questions, but that'll do for now, because it's the big query that's really stressing me out.

Thanks for reading, and I'm looking forward to your replies,

Cheers, Drastic

Plastic_is_Drastic

...So thanks in advance to anyone who posts, but I probably won't be back on until tomorrow now.

bye for now, Plastic is Drastic

trying-very-trying

Hi PID:hello: and welcome to the site and the dfw community, love the name by the way.

Before anyone can offer advice on your situation, it would be better if you could pop up a full statement of affairs.
This link will help you:
http://forums.moneysavingexpert.com/showthread.html?t=107280
Then all the smart people on here will show you where you can make savings, and give you advice on how best to deal with your financial situation.

As far as the reducing of cc balance goes, I think it would be very unusual for them to reduce your limit so it is lower than your balance. Having said that they do all seem to be tightening up recently.

Sea78

HI

Welcome to the board

Would be really helpful if you could list your outgoings/incomings and we'll be able to help more. Have a look at the newbie post at the top of the board for more details.

Sea xxxx

Plastic_is_Drastic

Thanks for the replies. If you don't mind, I won't post a SOA at the moment. I have had good long reads of many threads on this site and do seem to be doing pretty much what is recommended. I'm not hiding anything, least from myself, but I really have got everything pared to the bone. I'm very fortunate that at the moment my outgoings are low, so although my income isn't huge I can service the debts, and in the new year I will be able to start snowballing again.

I guess it's just that I've had the lightbulb moment (although it feels more like a "falling through a trapdoor and landing in a pile of rusty machinery in the basement moment"); financially I'm not really in any different state to a few months ago and can make the payments, it's just that I have now taken in how much I owe, and how long it'll take to pay it back.

I suppose because one of my cc's unexpectedly reduced my limit, I was getting into a state of panic that, for some reason, they would "call in the loan." I know they would rather have me paying the minimums for ever, but you guys have much more experience with the weirdness of credit card companies and the like, and I just got this mad feeling that I would get on with my snowballing, start paying back, then one or more of the cc's would make some demand out of the blue.

As far as I can see there would be no reason for the cc's to do anything drastic - I've got good credit, never been late or missed a payment, but as I say was getting into a state of panic that they would do something unexpected. Just wondering what you guys thought.

tigerfeet2006

I guess you've signed up to the cashback sites etc. then.

Plastic_is_Drastic

Thanks for the replies so far. #6, I will check them out, have had a quick look, if anything is relevant to me I will certainly sign up as every little helps, for sure.

Keep the replies coming, but I'm off to a boot sale this afternoon to do some clearing out and raise some cash!

In_Search_Of_Me

welcome platic, love the user name BTW! Can understand why you dont want to post an SOA - I never have as feel its very personal info on such a public forum! As tiger says you can join cashback sites & also look at doing surveys, use the old style boards to cut down on food etc & find alternative ways of cleaning & decluttering by flogging stuff on ebay etc! You just need to develop some strategies for getting it paid off asap - one way could be to see hw muh interest you're paying every month! Can be a great motivator!

consultant31

In answer to your original question OP, the credit card companies are hardly likely to reduce your maximum once you've gone past it - call in the loan, as you put it.

Like you said, you're a good earner for them and as far as I can see, someone who's managing to pay the minimum each month is the CC company's favourite customer.

Hope this sets your mins at rest.

Plastic_is_Drastic

Thanks again for the answers. I suppose what was worrying me was that I get on with chipping away at the debt, then suddenly find the rug pulled from under me. The consensus here seems to be that they are unlikely to do that, which is a relief, I must say.

I have made one huge decision which will make me a big saving monthly; I have been keeping a load of stuff in storage until I move into my own place (I'm currently living with a family member). None of it was of any great value, just the usual stuff you accumulate in your home, and I realised that for what I had spent on storage in a year I could have bought most of it all over again. I have started clearing out everything that is not absolutely essential or of too much sentimental value so that I can give up the storage, saving me £135.00 a month - that can go towards the debt, at least until I rent my own flat.

And I have started the clearout today by doing a boot sale, making myself over £100.00! I'll give notice on the storage unit this week, so I'll have to have it clear by the end of December, then that's another £135.00 for the snowball fund.

What I can't sell I'll give to charity shops/freecycle etc.