Transfer balance onto new Credit Card - if unemployed/on a low income

Unicorn79

I am asking for a friend with this..

She has a balance of around @1.4K which was on a credit card with 0% interest.  Then had an unexpected vet fee which was not covered by insurance, so her only option was to use her CC.  Now, the interest has commenced and she has lost her job, which means she has no regular income aside from UC.  She is about to set up a self-employed business, but it will not make a huge amount in the first year until she builds up business.

I helped her apply for a credit card last night though an eligibility check and it looks like she cannot apply for a balance transfer.  Can anyone advise of what she could do in this situation, so she does not pay the silly interest the CC is now charging...

Brie

Suggest she ring up the card company and explain she's in a tight spot and ask that they waive the interest.  Also give them a realistic (!) time frame for repayment.  Some companies will be ok with not paying for a couple of months while things get sorted and others are a bit trickier.  They may consider this defaulting or might log it as an arrangement to pay. 

Potentially they will ask to see her budget to see if a payment is possible at all.  To prep for this she should go on the debt free board and look for the SOA (statement of account).  If she completes this and posts it there the lovely people who hang about will see what they can suggest to make her budget more manageable until things are a bit better financially.  

Inbetweeners

Just be aware that any attempt to reduce payments etc is going to have a negative effect on their credit rating.

Nasqueron

Inbetweeners said:

Just be aware that any attempt to reduce payments etc is going to have a negative effect on their credit rating.

Less of an impact than missing payments or defaulting though.

Lenders have to follow financial hardship rules