credit cards making me suicidal

confused101

Dear MSE Forum please help.

I am at my wits end, I can't sleep, eat and am gnawing at my fingers because of credit card debit I see no way out and feel totally trapped. I know some might be unsympathetic in that if I take cards out I shouldn't complain. However I really think that these companies are walking a fine line with regards to the law and they are certainly neither fair or ethical towards customers.

I have a number of cards (Egg, MBNA and a Cahoot flexible loan). These were all taken out several years ago with rates below 8% for them all, I had a well paid job and regularly cleared the balances. I have a mortgage which is unfortunatley with Northern Rock, they have just upped my rate to 7.69%, well above the BOEBR and an extra £400 per month. I have had job troubles and for a few months was forced to use credit cards to pay bills. I am now back at work and am struggling to get back on my feet.

I think credit card companies, N.Rock and Cahoot are deliberately trying to bankrupt me. They keep putting my rates up. My Cahoot loan is now nearly 30% APR and my Egg credit card 22.9%. The problem is I can't get another credit card to switch the balances so I'm stuck being bled to death. I rang National Debt helpline who informed me they can do what they are doing and I have no options or rights.

I obtained a credit score from experian in December. My score was 981 and Excellent with no adverse credit history. So I applied for a few 0% balance transfer cards. I was refused by every single one.

Due to Northern Rock mortgage problems I applied for another mortgage, first with Cheltenham and Gloucester, who refused then Woolwich, refused again.

I'm powerless to get out of this situation and the credit card companies are killing me. Surely this cannot be legal? How can they be allowed to do this?

I have always paid my cards, mortgage, everything on time. I have no defaults or late payments on my credit report, no CCJs. Despite this everyone is refusing me credit. To make matters worse, due to all the searches my credit score has gone from 981 (excellent) to 686 (poor) in just a month!!!!

I even followed the advice for obtaining cards with a poor credit rating, i followed the link to moneysupermarket as advised and used the smartsearch. I filled everything in honestly and accurately and was given a list of several cards, I applied for two and surprise, surprise was refused. That was my last hope. I don't even need a 0% card, just something more reasonable that the extortionate 22.9% companies like Egg are charging.

I can't see a way out of this. I am utterly depressed and the credit card companies, Cahoot and Northern Rock appear to be trying to cripple me and there's not a single thing I can do about it.

If anyone out there has any advice for someone on the brink of suicide it would be much appreciated.

calibrax

Speak to Egg - I was in a situation like yours with over 21.9% interest on a balance of £12k, and they were happy to convert it to a loan at 14.9% over 5 years, and cancel the credit card. Oh and they didn't do any credit check on me in the process.

Hope this helps.

binnie

Hi Confused,

Sorry to hear of your troubles. I'm in a similar situation where I have loads of cards and now pay all my income and more on them and loans.
I've been getting stressed at work, so from March will be cutting my hours, so I suppose I will worry more as I won't be earning as much to pay my bills.
But I suppose my health comes first.

I also applied for 0% balance cards and for the first time in years and years, I got turned down. it was quite a shock.
I always pay them on time if only the minimum payment.

I've heard that if you ring the card companies up and explain the situation or threaten them that you are going to leave them for another company, they will then try and keep you and reduce the interest rate.

I've read that on this forum somewhere.

Also why not go to the Citizens Advice and ask them to contact your creditors on your behalf. I did this several years ago, probably about 10 years ago, and they froze all the interest on them.

I'm sure someone else will come along on here and help you.
Please don't comtemplate suicide, it's really not worth it.
I used to get thoughts like that, but with the help pf my doctor and some anti depressant tablets, I can control the feelings of that now.

Have you tried Ebay, I do that too, and totally rely on it to help pay the bills.

Please take care, and remember lots of us are in the same boat if that helps.
xxxxx

Bismarck

I've not been the first to post to so distressed before so please bear with us.

Do you have someone you can talk to ? A friend, family...

I had similar thoughts months ago when I just couldn't be bothered and it wasn't fair. The main thought I had then was that it wasn't fair not to give the people I loved a chance to help me.

It also ruins other people's lives too.

Please keep online until more experienced people come along with the right words.

confused101

Dear all,
many thanks for your replies and support, it makes a big difference. Part of the problem is all my family are totally reliant on me financially so I've got to keep a brave face on and try sort all this out on own and can't show how stressed I am. Just being able to talk on this forum helps.

I'll also follow some of the advice. Citizen's advice will give me someone to talk to and know where I stand if nothing else. I might try writing to the credit cards explaining the problem, I'm not sure how to word it though. Should I tell them I am struggling financially? Or should I bluff and say I'll move if they don't lower interest rates? I think if I bluff they'd probably know because I'm maxed out on the cards and barely making minimum payments, so they probably know they've got me over a barrel.

What's most ironic is as soon as I changed my spending style, i.e. out of work so started using cards and changed from clearing balance every month to minimum payments they starting hiking up my interest rates. Is this not taking advantage of customers they know are in financial difficulty?

Thanks again guys. Think need to go for a walk and clear my head, spent too long tonight poring over the internet trying to find a miracle.

xxxxx

confused101

P.S. When I get back I'll maybe rummage in cupboards for stuff to sell on ebay which is a great idea, I've loads of stuff. On the bright side it will give me more space too )

xxxxx

Bismarck

Good on you.

try Amazon too! CDs, books, PC games....list them on Marketplace....they just sit there and if they get bought, you clear some space and get a bit extra....think of it as beat the Bailliff...you get more for your stuff if you sell it at your pace than if it goes belly up and they sell a case of your CDs for a quid.....if you can get good cash for it now, do it....think about when you've spare cash again and you can buy and enjoy.

If you want to.

Also, your family would rather live in a rent house with you than without you. The thought of the dependants lives ruined was the final straw.

quick tip. be confident when haggling with them as they'll "forget" offers they have available and if you say you're in the pooh, they'll devour you.

keep posting, there's people on here who've done some incredible things And I've learnt loads.

another thing to think, I'd rather have £100K of debt than some health problems for me or my family.

stick with it, once you open your eyes, it's still not fun but there are worse things....hard though it seems to believe!

Bismarck

to reiterate...don't say financial troubles to the vultures , they already smell blood. It's not personal but they see your situation as a good feed. Once you tell them you can't take it back. Make sure you talk to the CAB.

please

sleep well

Squirrel29

Instead of 0% cards which seem to be difficult to obtain these days, even for people with good credit histories, could you try to get a life of balance card? I always pay on time but got turned down for 0% cards, but last week I was accepted for a 6.8% LOB rate for Barclaycard with a £2250 limit which I will use to pay off my Cahoot 16.9% card.

Don't harm yourself, it is just not worth it. As Martin says somewhere on this forum - no matter how bad things are, there is always a solution. It sounds as though you got generic advice from National Debtline re rights of credit card companies. Are they looking into your personal circumstances, could you also try Payplan or CCCS?

Bismarck

Good point re life of balance transfers...mine aren't the headline grabbing ones but I've got a lot in total, mostly life-of-balance and under 10%. Not ideal but a big improvement...once I'd broken the cycle by clearing one card and clearing that space on the limits. it felt good too, as each step in the right direction does...

boredofbeingathome

Is it worth posting this on the debt free wanabee board? It will work out, keep exploring the options.