Wife Confesses £10,000 CC debt, help please.

MissEyre

Thats right-CC company get a new customer who has already got a track record of building up debt on cards, so they see it as a great chance-not many people pay off the whole balance within the 0% time limit, so whatever is left is put onto their standard rate (often 16% or thereabouts). Essentially, they are banking on you not being able to pay it off, and that even if you do, you'll probably keep the card and keep spending on it. Not nice people, those card companies...

kcmatt79

Have a read through this.

Merlot

shocked wrote: »

I don't grasp the theory behind transferring to a zero percent card. Why would another CC company want to take on £10,000 of debt on 0%?

You mean I could transfer all this money to a zero percent account, and it would just sit there with the debt diminishing as payments are made against it over time?

Yes, but remember to re-transfer the outstanding balance before the last 0% month, otherwise you will pay interest.

Read this, I hope it helps. http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

kcmatt79

Sorry,

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#what

mrs-d_3

Yes that's true but most of C.C.'s now charge one off payment around 2.9% of the total amount so make their money there. They also bank on the fact that most of us will slip again and start using the card for spending and that's when they start charging.

mrs-d_3

Also wanted to say well done for being supportive........."in sickness and in health".

angelflower_2

shocked wrote: »

I don't grasp the theory behind transferring to a zero percent card. Why would another CC company want to take on £10,000 of debt on 0%?

You mean I could transfer all this money to a zero percent account, and it would just sit there with the debt diminishing as payments are made against it over time?

It does sound completely unbelievable huh? Welcome to the 'consumers fight back' or rather more fondly known as MSE!!! The advice you get on here really is invaluable.

Merlot

I do hope we have offered you some support tonight, please do not lie awake thinking about this, £8751 is not a lot of debt compared to many others, and it is certainly not worth a huge argument over, Mrs Shocked needs to realise that she cannot spend unnecessarily and if she does, she pays it back, not you.

Wishing you the best.

Merlot

kcmatt79

Agree, merlot. I'm sitting here thinking "I wish my debt was £9k". Terrible, I know!

To be fair to Mrs Shocked, I have no idea how/where my debt got racked up either. I was in very good financial situation until about 2003 when things all went wrong. I went through a crazy spending spree after splitting up with my o/h, then moved house as a student and had to fork out for rent etc. Wasted £10k on nothing (from separation settlement) then got into massive debt ON TOP! I have no idea HOW! I look back and realise what a fool I was and I'm sure Mrs Shocked feels the same. She will have to live with that, and it's not nice. I'm glad she has a supportive husband like you who will share her burden, but I do still think it has to be up to her to repay (or at least make a real contribution).

shocked_2

Although it is up to her to repay her debt, realistically, as a household, the whole family is going to be paying this back, her, me and the two kids. Any money that goes towards that debt will be coming out of the household income and as such the whole house is going to suffer.

Thanks for the CC links, I'll read again tomorrow about zero percent. Shame about the upfront charge, it's like in order to get zero percent you have to pay this entry fee - and that is what I am trying to avoid, paying out any more. That's why using my life savings seems like the easy and least-loss option.

If I got a Barclaycard Platinum CC at 0% interest on balance transfers for 14 months from account opening (2.5% handling fee applies), and put £5,000 balance debt in it (the max they allow) how much is the minimum monthly payment they would accept on that?

Thanks for all advice.