financial help

angelheart_sue

Please can someone help me. Last June I bought some furniture from a store on an interest free option providing it was paid back by this June. The interest rate is very high if not paid back by then. I am now in the position where I know I am not going to be able to repay this on time. It wasn't bought with a store or credit card so I don't think I can transfer it to a different card. I'm not very good with finances as you can tell. Please someone help me.

GeorgeUK

Can you tell us what credit cards you currently have - so we can apply for a different card and hopefully do a Super balance transfer (these allow you to pay money not only to another credit card, but also your current account).

No idea if you'll get the desired limit though - is it alot?

Have you had any late payments or defaults on anything recently?
Do you know how many credit checks you've had in the last 6 months?

angelheart_sue

angelheart_sue wrote: »

Please can someone help me. Last June I bought some furniture from a store on an interest free option providing it was paid back by this June. The interest rate is very high if not paid back by then. I am now in the position where I know I am not going to be able to repay this on time. It wasn't bought with a store or credit card so I don't think I can transfer it to a different card. I'm not very good with finances as you can tell. Please someone help me.

Thanks for answering me George. I think it's around £2,900. I have a marks and spencers and more card and a bank loan also with abbey. I have no idea how many credit checks have been done recently although I recently applied for a River Island card and that was ok I received it a couple of days ago. I tend to bury my head in the sand and I really do need to face this. Thank you for trying to help.

CannyJock

Sounds like you should get your free Experian credit report (cancel subscription within 30 days or you'll pay £ 6.99 a month). That'll let you see if you've had any missed payments recorded and details of credit searches.

If you're able to, a Virgin Money card would allow you to do a balance transfer directly into your current account. You could then use this to clear the loan - there's enough time for this to be processed and the funds in your account within a few weeks if you're accepted for the card.

Virgin charge a 2.98% fee (£ 86.42 on a £ 2,900 transfer). Your first payment will be £ 89.59 followed by 14 payments of £ 25.

Best advice would be to do this to avoid the interest on the furniture, then divert maximum funds to repaying your other debts, highest APR first.

If you've got a balance on the M&S card or the River Island card and they're charging you interest, then you should cross your fingers that you'll get enough of a limit on the Virgin card to clear these and let you close them.

Is the Abbey loan on a fixed term or can you repay it early or make additional payments to it?

Out of curiousity, why did you apply for a River Island card? Was there a special offer on it?

angelheart_sue

I guess it must be fixed because I haven't noticed any difference in the payment each month. I sent for the River Island card purely because my daughter loves their clothes. Have only used it once I think the outstanding amount is negligible I can pay that off when the bill comes in.

CannyJock

angelheart_sue wrote: »

I guess it must be fixed because I haven't noticed any difference in the payment each month. I sent for the River Island card purely because my daughter loves their clothes. Have only used it once I think the outstanding amount is negligible I can pay that off when the bill comes in.

Might be worth asking the loan people for a settlement figure and compare this to how much you would pay if you continue repayments to the end of the term - cousin has just saved £ 14,523 by clearing an Abbey loan early.