Feeling Trapped By High CC Interest Rate

pennypinching_2

I, like others (I would image) pay a minimum payment off my CC by DD and never open any statements. A couple of months ago I opened a statement and was horrified to find that on my MBNA card was paying £74 per month with (no insurance) and only .20p of that was coming off the amount owing. Over a year thats approx. £900 that Im paying and the amount owning will be reduced by £2.40!

This made me feel quite sick and applied for a loan for the amount of £5000 to pay the card off. The loan was declined due to poor credit rating, which I was also shocked at as Ive always had and excellent score of 999.

Earlier this year I went self employed but realising that it would be difficult financially I decided to remain employed but reduced my hours at work so I had a regular income. I decided to ask my loan companies if I could reduced my payments for a period and one agreed without any fuss. So instead of pay £104 per month I have been paying them £60 per month for 6 months. I have checked my credit score and this is what as caused my credit score to go from 999 excellent to 467 very poor.

I feel trapped by this CC and cant see a way out. I know that if i paid extra each month it would come down quicker. But this isnt possible at the moment as Im now on maternity leave from my employed job and my self employed business is quiet in the winter and busy during the summer.

Any suggestions...anyone?

CLAPTON

Without knowledge of your income, spending, full debt details, personal circumstances, assetts etc its impossible to give any sensible advice.

I would suggest you go over to the debt free wanabe board and post an SOA (i.e. the full financial details ).. read the sticky threads on that board.