How can I cheaply pay off my one remaining credit card?

Treadway1

Hi all,

I was wondering if someone could offer a bit of help regarding my one reminaing credit card. I recently paid off (Thanks to a compensation payout) all of my credit cards, bar one, and in doing so, wrote off almost all of my £15000 debt. However, I now have one credit card left to pay off with £2500 on it. Its not a huge amount of money and I am paying it off in a manageable way, but of the £90 I can afford to pay off of it a month, only £30 pound is going towards paying off the debt and the rest being swallowed by interest charges. Ive tried applying for 0% balance transfer credit cards but get refused because I still have a dismal credit rating. I dont want to apply for another loan, as the only companies willing to offer me one have even worse rates than what im paying now. My last option (that I found on this forum) was to ask my mortgage company for a payment holiday and use that to pay of a large chunk of the credit card, but unfortunately, because I have only recently paid off the arrears on my mortgage, that wasnt possible either.

As I say, Im not losing sleep over this matter, but I do begrudge paying so much in interest charges each month and wondered if anyone has any ideas as to what I could do. I really appreciate any help.

Many thanks in advance

Peter

YorkshireBoy

Treadway1 wrote: »

...of the £90 I can afford to pay off of it a month, only £30 pound is going towards paying off the debt and the rest being swallowed by interest charges...

...wondered if anyone has any ideas as to what I could do.

If your credit rating really does prevent you applying for a card in the near future, could you ask a family member for a loan?

Maybe offer to split the difference (ie the £60 a month interest you're paying now) with them?

Everyone's a winner.

benf90

The cards which you paid off... were they closed or are they still open?

You may already know this but thought I'd mention it anyway.

If they're still open you may be able to reduce the amount of interest you're paying. Find out what rates of interest are charged on each card, then transfer the debt to the one with the lowest rate of interest.

For more info and an in depth explanation see here:

http://www.moneysavingexpert.com/cards/cut-credit-card-interest

As you've mentioned you have a poor credit score then there's a couple of tips from an article here:

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