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Help Needed

edited 30 November -1 at 12:00AM in Debt-Free Wannabe
11 replies 1.4K views
Corpsebride86Corpsebride86 Forumite
106 posts
edited 30 November -1 at 12:00AM in Debt-Free Wannabe
Hi everyone,

Hoping someone can help, sorry for the long post :(

I have an Evans store card balance of £700 and a TSB Classic credit card balance of £1200

I was totally against the cards in the first place knowing that I am bad with money.

But the bank dragged me in for a meeting to update the information they hold on me, it was discovered in this meeting that the banks systems were completely out of date, as far as they were aware I was 15 years old in school but some companies were mysteriously paying me a large sums of money every month (I was actually 20 with three jobs, working full time and the mysterious sums of money were my wages)

I was bullied into having an overdraft, credit card and told to go get a store card. I told the bank I didn't want them and several times told them no, but during the conversation the manager noticed I was engaged and told me that unless I got them and used them then I would never get a credit rating, meaning that I would never be able to get a mortgage to move in with my fiance, I would never be eligible for other things such as loans or credit anywhere.

Skip forward a couple of months to Christmas, I was signed off sick, had presents to buy and used the card. I then became redundant as the shop I worked in went into administration and that left me unable to afford to pay back anything more than the minimum.

It took me a long time to get back into proper work, and I've had to fall back on the cards a few times but now i'm in a position to be getting these cards paid off and got rid of! I would love to get these paid off asap! The cards are snapped up and any new cards that come through get snapped up straight away!

Me and my partner have been paying chunks off but it doesn't seem to go anywhere fast, i'm paying £100 per month off the TSB and £40 + per month off the Evans.

I now bank online so have been dealing with all the payments online, as I work out of town and can never get to a bank. as I was on holiday last week me and my fiance decided to go into the bank as we had some spare cash and pay off an extra sum (£60) against the card. Whilst in the bank I had 3 staff members try to sell me a loan, this was part of the reason I also switched to online banking as I hate them trying to sell me extra debt while i'm in the bank.

The only person who knows about the debts is my partner, and I really don't want my family knowing.

What is stressing me out at the moment is TSB are hounding me to try to get me to take out a personal loan. Despite the fact I have declined the offers of loans and I'm TPS registered they are now calling me to try sell me a loan.

The TPS should cover this as when I registered I got a letter from TSB about 3 weeks afterwards asking me to sign a form and return it to them to allow them to make marketing calls to me... needless to say I ripped up the letter as I don't want to receive marketing calls.

I've also received letters not just the standard mail merge ones sent in bulk, but also ones sent directly from my local branch, trying to get me to take out a loan.

I want the cards gone, I've been advised by a close friend not to take a loan, as I would then be stuck to a set repayment over so many months and in a short month where I may only afford £80 rather than the £100 or a month I may be able to afford extra on a payment then it would go against me, as I would then have to rearrange lower/higher amounts and that the loan would have interest associated too.

They told me the best thing to do would be take out another credit card, one with 0% on balance transfers for so many months and then when the 0% period finishes transfer that balance elsewhere with 0% and keep shifting it round till its paid as that would give me a better chance of getting it paid off sooner and cheaper.

I am really stuck at trying to find a card as I don't understand the APRs and other stuff.

Any help is gratefully received.

Thanks in advance

Kirsty
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Replies

  • R_P_WR_P_W Forumite
    1.5K posts
    Are you for real?

    So the bank dragged you in? The bank forced you into having a credit card and an overdraft? They also managed to force you into going to get a store card from a shop?

    Why would a bank think you were 15?
  • jobdone1jobdone1 Forumite
    747 posts
    Eighth Anniversary 500 Posts Combo Breaker
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    I am lost with this you say you want to clear this debt that you cut up any new mail or cards this is how i read it, Then you are asking what card is best to clear the debt or personal loan. You need to snowball i.e pay the debt with the highest a.p.r with the most amount of spare cash and so on.

    By you getting further credit whats stopping you from using that for other things.
  • Sounds like you were a pretty naive 20 year old! No-one can force you to take out a loan or credit, just stick to your guns and say no, it's not that hard.

    This link has info about 0% credit cards: http://www.moneysavingexpert.com/cards/best-0-credit-cards

    I don't understand the ins and outs of APRs myself but I know that whatever interest rates are advertised to look for the lowest one! Simple as that :) If you are paying 0% interest, you will not pay anything more than the money that's actually on the card. A loan at best will probably be 5-6% interest but those rates are usually for big loans, and yes they will tie you in for years of repayments.

    As your friend advises, take note of the 0% period (most cards have a limited time when you can pay 0% on either purchases or balance transfers) and either make sure you pay off the debt by this time or move the debt afterwards. Once cards are paid off, don't just cut them up, ring the banks and close the accounts (they will try and keep your custom, STAY STRONG AND JUST KEEP SAYING NO THANKS!)
    Savings target: £25000/£25000
    :beer: :T


  • I imagine the Store Card is around 30% APR so if you can switch it to a 0% card then that would be good advice as £40 a month, is probably only covering the interest and so the balance will hardly reduce.

    That said, I don't know where the additional cards that you cut up when they send them come from? To the best of my knowledge, banks don't just send out credit cards unless you make an application for them in the first place!
  • jobdone1 wrote: »
    I am lost with this you say you want to clear this debt that you cut up any new mail or cards this is how i read it, Then you are asking what card is best to clear the debt or personal loan. You need to snowball i.e pay the debt with the highest a.p.r with the most amount of spare cash and so on.

    By you getting further credit whats stopping you from using that for other things.

    As the store card and credit card go out of date and they send new ones I cut the new ones up. no cards means no further debt on them. I only have the two card accounts, no others.

    I read the letters, I turn them down regularly on their offers

    Yes maybe I was a naive 20 year old.

    As the bank hadn't updated their information on me, according to their system information when I went in I was still in high school, not had been through sixth form, and had gone into full time employment. At that point I didn't have any form of credit or things such as mobile phone contracts.

    As a 20 year old just out of sixth form, and not having much experience the ins and outs of things it terrified me when they told me I would never be able to have anything such my own flat or house to move into with my fiance or even something so simple and often taken for granted as a mobile phone contract as I had no credit rating.
  • TixyTixy Forumite
    31.5K posts
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    Just tell the bank that you are definitely not interested in a loan. They do not force them on people. If you receive offers in the post you are not interested in just bin/shred them. If they phone simply state that you do not want a loan and are not interested in their marketing calls.

    0% cards balance transfer cards are only generally available to a small selection of the population, whether you are likely to be eligible depends on your financial history and circumstances.

    What do your credit files show? have you ever missed any payments / paid late for anything?
    Are you on the electoral roll?
    Are you employed and if so how much do you earn (some cards have minimum income criteria).
    How old are you know (some cards have minimum age restrictions).

    What are the APRs on your existing debts?
    Is £140 the maximum you can afford towards your debts?

    In terms of a 0% card - whilst this would save you interest (assuming you keep within the terms and always repay of time) it may not be the best option if you feel you are not good at handling debts / managing your money.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • bargainbettybargainbetty Forumite
    3.2K posts
    Part of the Furniture 1,000 Posts Name Dropper Debt-free and Proud!
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    Call your bank using the telephone service they usually offer. Speak to customer services. Ask them to bring up the details of your marketing preferences on their database and then formally withdraw your consent to telephone calls, texts, direct mail, email or any other form of marketing. If they try to tell you that you wil miss out on great offers, politely say that you don't wish to hear their offers. They are legally obliged to remove you from their lists and stop calling you.

    With regard to the debt, look up the APR on each card and try to pay off the highest rate one first. If you can obtain a card with a low-life-of-balance transfer rate that might help, and is sometimes slightly easier to obtain than a 0% card. As long as the rate is significantly below the rate you have on your cards, it will be worth it.

    In the meantime, use all your spare cash to pay down the card with the biggest rate. Even if you go online and make little payments every few days (didn't buy lunch - pay a fiver off the card) which seems less noticeable.

    Good luck.
    Some days, it's just not worth chewing through the leather straps.... :wall:
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
    MFW - Joined May 2012, aiming to cut the mortgage by an extra two months every year. (Overpaid £3000 so far), only 11 years to go.

  • Ive just gone onto Experian,

    No Late Payments everything is green.

    My score says fair with 847 points. and that I am deemed as low risk. There are two positive pointers and no negative pointers.


    One thing I have noticed on experian is it says my credit limit is £2400 its not, I have £1200 avaliable credit on the store card and £3200 credit avaliable on the credit card. Could this affect anything if I go to get the 0% card?

    Im 26 now, and work full time I get around £870 per month. generally i pay the £140 and what ever is left after rent and bus fare, phone bill and shopping goes in to paying extra off.
  • jobdone1jobdone1 Forumite
    747 posts
    Eighth Anniversary 500 Posts Combo Breaker
    ✭✭
    As the store card and credit card go out of date and they send new ones I cut the new ones up. no cards means no further debt on them. I only have the two card accounts, no others.

    I read the letters, I turn them down regularly on their offers

    Yes maybe I was a naive 20 year old.

    As the bank hadn't updated their information on me, according to their system information when I went in I was still in high school, not had been through sixth form, and had gone into full time employment. At that point I didn't have any form of credit or things such as mobile phone contracts.



    As a 20 year old just out of sixth form, and not having much experience the ins and outs of things it terrified me when they told me I would never be able to have anything such my own flat or house to move into with my fiance or even something so simple and often taken for granted as a mobile phone contract as I had no credit rating.

    Sorry was not being hard on you and i do feel for your situation.
    Look at the past 4 to 6 months statements work out what interest you have paid and the amount you put down to see how this has reduced your balance. It would be a great idea to go 0% on a card if you can and from your credit check sounds good that way the amount you pay every month does come off the full balance but remember if you do transfer to a 0% card never spend on it as this will affect your 0% period and gain you interest. P.S cut up your store cards after transfer if you go down this route:D
  • edited 18 October 2012 at 3:36PM
    TixyTixy Forumite
    31.5K posts
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    edited 18 October 2012 at 3:36PM
    Given the level of credit you have, and your income then you may struggle to get a 0% card. Thats not to say it might not be worth trying 1 application to a provider.

    Before you can decide on a course of action - you need to know what your existing APRs are on each card. Check your statements as they will tell you. Its likely that your store card has the higher APR, and if so then you probably need to change the split of the amount you pay each month between the cards. It might even be worth considering transfering from one card to the other.

    Regarding your experian report - are you sure it says your credit limit is £2400? maybe its says your available credit its £2400 (which is roughly the limits on the 2 cards less the balances).
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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