Please help a clueless girlfriend!

Batgirl22

Newbie to this site! Please be nice lol

I need some advice really!

My Boyfriend has an overdraft of £300 and a credit card (which he has now frozen) with 1800 on. HOWEVER just recently found out his has missed QUITE a few payments over the last two years on the credit card. no because he didn't have the money because he is just too damn lazy and/or forgetful to make the payments, regardless of the reason his has missed payments.

He has a very good job and has recently been paid a bonus, enough to pay both debts off ( Which he has the overdraft, and £700 of the credit card) Should he

a) Pay off the credit card in full in one big swoop

or

b) Pay each month on time till its paid off,

Our Morgage is due for renewel in October and I am really really worried about his credit score what will be the best way to tackle the problem, oh and I am also worried because I have found out also that Vodaphone who he has his phone with go to get payments out of his old savings account to which he has it all set up too, but he never makes sure the money is there (because he is a slack Alice) so will that effect it also because he does alyways pay his bill, but only when his bank send him a lovely letter and charge him £70 for it!

Thanks

Batgirl!!

timnicebutdim_2

If he pays off only the minimum each month he will be paying it off for many years and the interest would be astronomically high so the best option in my opinion is to pay the full balance off (if he can afford it).

Failing that transfer the balance to a 0% card and set up a standing order of say £150 per month and he'll at least avoid the interest for the 0% promotional period and will have paid it off in a years time (subject to a balance transfer fee of about 3%).

I *think* the credit rating will be improved if he pays off the balance in full........ and as for the bank charges, have a go at trying to reclaim them with one of Martins bank charge reclaiming template letters.

Batgirl22

Thank for the advice it really helps!

I would get him to get another credit card with an interest free balance transfer on but I am really really scared he might get refused because of the slap happy daisy way he has treated this one, thus making his score even worse!

He is an idiot and don't worry I have told him so!

Moggles_2

Batgirl22 wrote: »

I would get him to get another credit card with an interest free balance transfer on, but I am really, really scared he might get refused because of the slap happy daisy way he has treated this one, thus making his score even worse!

TBH, I think you're right. A 0% BT card isn't an option at the mo.

At present, you're financially linked because of your mortgage, so applying for a 0% credit card in your own name (not that I'm recommending this), wouldn't help.

IMO, the best way forward is for him to settle his debts asap. That way, you'll reduce the risk of further late payments, cut the interest he pays and improve your credit rating (his as well as yours) in the process.

Very best
M

jonesMUFCforever

I fully agree with Moggles - the only thing I would add is make sure that he sets up a direct debit for any future card!

Volcane

Batgirl22 wrote: »

Thank for the advice it really helps!

I would get him to get another credit card with an interest free balance transfer on but I am really really scared he might get refused because of the slap happy daisy way he has treated this one, thus making his score even worse!

He is an idiot and don't worry I have told him so!

If you are prepared to get this sorted and (meant with all due respect) your relationship is solid enough you could take out a 0% transfer card in YOUR name and and transfer his debt to you and yyou would ensure the debt is paid off. You would be 100% liable for this balance though if you did.

Batgirl22

If he has the money (which he does!!!) I think he should pay it all off at once.

However his mate has told him to improve his credit score if he did it in monthly installments.

I don't see the need for me to get one in mine name (But I would if it helped)

Volcane

Batgirl22 wrote: »

I don't see the need for me to get one in mine name (But I would if it helped)

You probably might not be able to get one as you are financially linked (ie his non-payment has affected your credit rating too in this case).

For the same reason it is also in YOUR best interest to get this sorted asap.

Batgirl22

No I got one about a month ago, with a MASSIVE credit limit I was shocked!! But I have no problems with credit full stop Never have, Ive been a very good girl all my life!!

GeorgeUK

Get him to pay it off all in one go.

I think his friend is focussing more on the fact that payments are being made on time to the card which may improve his "dependency" of being able to pay on time. He can do this just the same by clearing the debts in full and after using his CC during the month, clear it in full at the end of the month (or after payday) so that he isn't charged interest

simongregson

It might help in the future if you both agree to put bills in one place in the house, then you can be nosy and root through them and nag him until he pays them

In principle a direct debit to pay off the entire balance is a good idea, but he must remember to have some money in his account when the direct debit comes out!

Pay off the whole lot at once, his credit rating will be shot for a while anyway if he has loads of late or missed payments. It will actually improve his rating as he will have less utilised credit.

Bear in mind his contract phone will also show on his credit report

It is possible that the late payments will affect your mortgage application, but there isn't much you can do about this now, you will have to wait for the lates to drop off your credit file. You should get a copy of your credit reports to check exactly what has been reported. They are £2 each from www.experian.co.uk and www.equifax.co.uk.