Credit Card Debt

PricklyPear

Hi,

Not sure where to start or in which direction :rolleyes:

I have a credit card debt of about £11,000. I have been with the Company for 25 years. Things have spiralled a bit to say the least. I have checked some of the 0% card offers but still the minimum payment is going to be a toughie Just noticed that on my latest statement, the purchase annual rate is 29.3% which is the same as the cash annual rate. Annual rates not being a particularly strong point for me (minimum payment is £278 of which £192.25 is interest !!)

Any guidance on where to start or the correct place to get advice would be very very much appreciated.

Toastie

PricklyPear wrote: »

Hi,

Not sure where to start or in which direction :rolleyes:

I have a credit card debt of about £11,000. I have been with the Company for 25 years. Things have spiralled a bit to say the least. I have checked some of the 0% card offers but still the minimum payment is going to be a toughie Just noticed that on my latest statement, the purchase annual rate is 29.3% which is the same as the cash annual rate. Annual rates not being a particularly strong point for me (minimum payment is £278 of which £192.25 is interest !!)

Any guidance on where to start or the correct place to get advice would be very very much appreciated.

If you are stuggling with debt repayments then CAB could be an option.

Or if you think you can (although you say it will be tough) look at a balance transfer card. Virgin offer 15months 0% - however interest rates are high on these cards and you would need to switch.

http://www.citizensadvice.org.uk/

Another option maybe be part time work at the weekends? Supermarket maybe?

Your not alone. Look at the debt free wanna be board for alot of help on ways to clear debt.

Alot of us will be able to advise you on what you could do.

Best of Luck.

dhassen

Hi PricklyPear,

First off I think you'll find that if you go to the Debt-Free Wannabe board, you'll get loads of advice and help.

Also, if you get a 0% card, the minimum payments won't be anything like what you're paying at the moment, if only for a year or whatever. At 0% at least your payments will make a dent into your debt. Hope this helps

PricklyPear

Many thanks - I will have a read and check out the Virgin Offer

Toastie

PricklyPear wrote: »

Many thanks - I will have a read and check out the Virgin Offer

They offer very high rates. Do you mind me asking if you have hade late payments. This would affect your credit rating.

Equifax or Experian have free trials and any incorrect data can be changed.
Hopefully there will be nothing wrong.

If your earn enough you might want to look at life of the balance deals. HSBC and Tesco have them (although i'm not up-to-date).

Also you say the purchasing rate. Do you buy things on to this card? Maybe look at a 0% purchase card so no interest is paid.

However do not take out multiple credit cards as this will affect your credit history and make you look desperate for money.

PricklyPear

Toastie wrote: »

They offer very high rates. Do you mind me asking if you have hade late payments. This would affect your credit rating.

Equifax or Experian have free trials and any incorrect data can be changed.
Hopefully there will be nothing wrong.

If your earn enough you might want to look at life of the balance deals. HSBC and Tesco have them (although i'm not up-to-date).

Also you say the purchasing rate. Do you buy things on to this card? Maybe look at a 0% purchase card so no interest is paid.

However do not take out multiple credit cards as this will affect your credit history and make you look desperate for money.

I may have had a couple of late payments, I really can't remember. To be honest I have got to the stage where I don't even open the bills anymore (except today), I just make a payment via online banking every month although not at the same time every month. They have just put up my credit limit yet again and my available cash limit (although I have never obtained cash from my card). I do use the card for purchases as this is the only credit card I do use when shopping/paying for holidays etc, but I have now got into the habit of using my Bank debit card more and basically going without things I really don't need. My husband and I have another card that is only used for car insurances and pet insurance premiums and that is regularly paid and the balance at the moment is about £800, but that is managed ok throughout the year.

We have no loans (other than the mortgage).

Would it be better if this was in the DFW section

Toastie

PricklyPear wrote: »

I may have had a couple of late payments, I really can't remember. To be honest I have got to the stage where I don't even open the bills anymore (except today), I just make a payment via online banking every month although not at the same time every month. They have just put up my credit limit yet again and my available cash limit (although I have never obtained cash from my card). I do use the card for purchases as this is the only credit card I do use when shopping/paying for holidays etc, but I have now got into the habit of using my Bank debit card more and basically going without things I really don't need. My husband and I have another card that is only used for car insurances and pet insurance premiums and that is regularly paid and the balance at the moment is about £800, but that is managed ok throughout the year.

We have no loans (other than the mortgage).

Would it be better if this was in the DFW section

Yes, have a look around about different things.

I'm just wondering if you would get a card, probably if they put up your limit in this financial market.

I would go for Virgin to get interest free payments, then look at balance transfering continulously. Look at the credit card section for a better understand of transfers and available offers.

Thought about getting a cashback card (in your husbands name probiding he is debt free) you can earn 1% a year and in some cases around 5% for the first three months.

Good luck (sorry about pestering )

PricklyPear

Toastie wrote: »

Yes, have a look around about different things.

I'm just wondering if you would get a card, probably if they put up your limit in this financial market.

I would go for Virgin to get interest free payments, then look at balance transfering continulously. Look at the credit card section for a better understand of transfers and available offers.

Thought about getting a cashback card (in your husbands name probiding he is debt free) you can earn 1% a year and in some cases around 5% for the first three months.

Good luck (sorry about pestering )

Pestering is good It is making me sit up and really think about things instead of sitting on them

I was wondering if it may be worth approaching my existing Company to see if they can offer me anything (also with the mention that I am looking at other Companies as well) ??

Yes, husband is debt free. He is the wise one :rolleyes: