Asda credit card

hendipoo

I took out an Asda Credit card in 2007 with a limit of £750 , I probably spent about £400 and then did not use it again . 14 years onwards and paying about £9 a month I still owe 
£332 pounds the payments over 14 years add up to £1,512 ? The amount that is reduced from the debt is minimal about £3 the rest is charges ? Is there anyway I can get rid of this any quicker ????

Brie

Well the short answer is pay more.  Stating the obvious - the higher the payment you make each month then the more of the original debt is paid off and less interest will be charged.  Even an extra £1 a month will help.

The longer answer is to talk to Asda or actually whatever bank it is that runs their card.  Explain the problem of trying to pay it off and ask for a reduction of interest - preferably to zero.  If you are fortunate they may agree but possibly only for X months.  During that time do try to clear as much as possible as I suspect you must be on a high interest rate if it's dragged on all this time.  

Good luck with it - it's a burden to keep carrying a debt like that for so long and I'm sure you'll be much happier once it is gone.

Ebe_Scrooge

Brie said:

The longer answer is to talk to Asda or actually whatever bank it is that runs their card.  Explain the problem of trying to pay it off and ask for a reduction of interest - preferably to zero. 

Just be aware that, even if they agree to reduce or freeze the interest, this will have a substantial negative impact on your credit history.  This may or may not be an issue for the OP - it's not an issue if you have no intention of applying for further credit (including a mortgage) for the next 6 years.  Must admit, I'm surprised the OP has not been contacted by the bank under the "persistent debt" guidelines if they've been paying only the minimum for 14 years.

Alex9384

Ebe_Scrooge said:

Just be aware that, even if they agree to reduce or freeze the interest, this will have a substantial negative impact on your credit history. 

What exactly will show on your credit files in such case?

kaMelo

Alex9384 said:

Ebe_Scrooge said:

Just be aware that, even if they agree to reduce or freeze the interest, this will have a substantial negative impact on your credit history. 

What exactly will show on your credit files in such case?

Paying anything less than the minimum payment at the agreed interest rate could result in a default or Agreement to Pay (AP) marker, both of which have quite a negative impact and will prevent credit from any mainstream lender.

Brie

kaMelo said:

Alex9384 said:

Ebe_Scrooge said:

Just be aware that, even if they agree to reduce or freeze the interest, this will have a substantial negative impact on your credit history. 

What exactly will show on your credit files in such case?

Paying anything less than the minimum payment at the agreed interest rate could result in a default or Agreement to Pay (AP) marker, both of which have quite a negative impact and will prevent credit from any mainstream lender.

I don't think Ebe_Scrooge was suggesting paying less than the minimum.  I suspect there may be some "interest frozen" marker but have never seen one on a credit report so am guessing.  

Ebe_Scrooge

Brie said:

I don't think Ebe_Scrooge was suggesting paying less than the minimum.  I suspect there may be some "interest frozen" marker but have never seen one on a credit report so am guessing.  

Correct.  It's usually flagged as an AP (Arrangement to Pay).  Which means that you have been unable to make the requirement minimum payments, so the bank have agreed to you paying a lesser amount (whether that be via a reduction in interest charged, or just a specified fixed sum).  So you're abiding by the terms of the agreement that has been reached, but the fact still stands that you've effectively defaulted on what you were originally supposed to pay - which is obviously a bad thing as far as your credit history goes.

Stuart_W

If Asda won't budge on interest rate, check your current interest rate and see if any loan options at a lower rate are available to you - if you can't access any 0% transfer deals your local credit union might be an alternative place to start. They are often happy to deal with small loans (what a £330 loan would be seen as by a bank).
But as others have said paying more per month - even if just a pound of two - will make a big difference. 

Sncjw

Can you reallt not find a spare 330.quid or bigger chunk to pay a month.