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Original poster

What fools we’ve been - credit cards

210 replies

Janedoer · 13/10/2024 21:02

Hi,

so went screwed up spectacularly! We’ve had two very expensive years of renovations to our house. In our stupidity we totally underestimated the costs. In even further stupidity we continue to overspend, using credit cards. We’ve played the 0% credit card shuffle game but it’s about to come crashing down. We fucked up and missed a loan payment and it impacted our credit files. We can now only get very high interest cards and no chance of a 0% balance transfer. This means that in February we’ll have £17k of credit card debt at 26%. This means that our current payment of 170 will be over £500. I’m sick to my stomach.

the good news is that despite the interest hike, we can afford the increase. It’s just a sickening waste of money. We were turned down for a remortgage and we’ve been advised to not apply again for at least 12 months. Probably not the best idea anyway.

were a couple of professionals with a 100k Joint salary. What utter fools we’ve been. I’m so ashamed.

OP posts:
BigDahliaFan · 13/10/2024 21:04

You'd be insane to pay that much interest. Can you get a lian from the bank ir try a mortgage broker.

VestPantsandSocks · 13/10/2024 21:05

Try for just a regular bank loan? The rate will be around 8%.

Original poster
Janedoer · 13/10/2024 21:06

BigDahliaFan · 13/10/2024 21:04

You'd be insane to pay that much interest. Can you get a lian from the bank ir try a mortgage broker.

Sadly not at the moment. We’re just not eligible. The only way that we could avoid the interest is by asking for a payment arrangement however this would trash our credit files even more. We’re also unlikely to be offered that option as we can afford the higher payments

OP posts:
LoremIpsumCici · 13/10/2024 21:07

Well, I’d get a seasonal second job for the holiday season, I’d start selling things as well. You have several months to come up with the money.

Original poster
Janedoer · 13/10/2024 21:07

VestPantsandSocks · 13/10/2024 21:05

Try for just a regular bank loan? The rate will be around 8%.

We’ve tried and have been rejected. Constantly applying and being turned down is a big red flag on our credit files- it’s a vicious cycle

OP posts:
Original poster
Janedoer · 13/10/2024 21:08

LoremIpsumCici · 13/10/2024 21:07

Well, I’d get a seasonal second job for the holiday season, I’d start selling things as well. You have several months to come up with the money.

I know but it’s 17k!

OP posts:
fashionqueen0123 · 13/10/2024 21:08

Sorry do you mean you were only paying £170 a month off a £17k debt on the credit cards?

Original poster
Janedoer · 13/10/2024 21:10

fashionqueen0123 · 13/10/2024 21:08

Sorry do you mean you were only paying £170 a month off a £17k debt on the credit cards?

Yes at 0% the payments were 1% of the balance

OP posts:
WonderingWanda · 13/10/2024 21:12

Do you have any relatives who could help you out? Or is selling the house to clear the debt an option? That one might be hard to consider but I have a relative who lost their house eventually in a similar situation because they refused to consider that option until if was too late.

Original poster
Janedoer · 13/10/2024 21:14

WonderingWanda · 13/10/2024 21:12

Do you have any relatives who could help you out? Or is selling the house to clear the debt an option? That one might be hard to consider but I have a relative who lost their house eventually in a similar situation because they refused to consider that option until if was too late.

I don’t want to sell the house as we’d end up renting and almost certainly paying more than our current mortgage. We can afford the higher payment, it’s just gutting

OP posts:
VestPantsandSocks · 13/10/2024 21:15

This seems to be a very expensive mistake, so unfortunately you will have to bear it in the short term whilst your credit rating gets rebuilt.
At least you can afford to do so......

LoremIpsumCici · 13/10/2024 21:15

At the minimum pay the higher payment NOW so the principle gets paid down more before higher interest starts.

mathanxiety · 13/10/2024 21:16

Can you start overpaying immediately?

SBHon · 13/10/2024 21:16

Was this your long term plan? To pay it off over 8+years? I feel sick for you, I’m sorry OP. How much can you clear by Feb?

Original poster
Janedoer · 13/10/2024 21:16

mathanxiety · 13/10/2024 21:16

Can you start overpaying immediately?

Yes we have. Thankfully a different loan has just ended so we’re using this to throw at it

OP posts:
Original poster
Janedoer · 13/10/2024 21:17

I feel like such a fool and as though we’re the only people I know to be so stupid

OP posts:
Original poster
Janedoer · 13/10/2024 21:17

SBHon · 13/10/2024 21:16

Was this your long term plan? To pay it off over 8+years? I feel sick for you, I’m sorry OP. How much can you clear by Feb?

We planned to keep shuffling it to 0%

OP posts:
PermanentTemporary · 13/10/2024 21:18

Sell the house?? That seems a bit extreme.

I would agree with hunkering down and selling anything else though, and tightening your belts to pay more of it off ASAP.

Could you manage a lodger? (I keep suggesting this).

Freshersfluforyou · 13/10/2024 21:19

I don't understand - if you can afford the higher payments why on earth were you choosing to only pay £170 a month. The point is to use the 0% period to chip away at the debt so that's lower once they start charging interest?
You could have paid an extra £200 per month the last two years and the debt would be nearly 5k less?!

Original poster
Janedoer · 13/10/2024 21:20

Freshersfluforyou · 13/10/2024 21:19

I don't understand - if you can afford the higher payments why on earth were you choosing to only pay £170 a month. The point is to use the 0% period to chip away at the debt so that's lower once they start charging interest?
You could have paid an extra £200 per month the last two years and the debt would be nearly 5k less?!

It’s only been very recently that we’ve had the additional cash- end if childcare costs plus a loan that has ended.

OP posts:
Brainded · 13/10/2024 21:21

Freshersfluforyou · 13/10/2024 21:19

I don't understand - if you can afford the higher payments why on earth were you choosing to only pay £170 a month. The point is to use the 0% period to chip away at the debt so that's lower once they start charging interest?
You could have paid an extra £200 per month the last two years and the debt would be nearly 5k less?!

This!! And how did you miss a payment if you could afford more!? Yes…as you say you’ve been pretty foolish. Sorry but it was crazy of you to let that happen

Onlyonekenobe · 13/10/2024 21:21

You’re probably not the only people to do such things, but it really is quite stupid. I say that because you seem financially literate.

Still, this is where you are. Can you borrow from a family member and pay it all off in one go. Offer the family member 5% if nobody would do it for nothing?

Original poster
Janedoer · 13/10/2024 21:22

Onlyonekenobe · 13/10/2024 21:21

You’re probably not the only people to do such things, but it really is quite stupid. I say that because you seem financially literate.

Still, this is where you are. Can you borrow from a family member and pay it all off in one go. Offer the family member 5% if nobody would do it for nothing?

i don’t think any of our relatives would have that sort of money. My mum could potentially help a bit with a few grand

OP posts:
Superworm24 · 13/10/2024 21:23

In your shoes I would be paying it off as quickly as possible. Everything non-essential would be gone. Have you been through your household budget yet?

AdultChildQuestion · 13/10/2024 21:23

Do you have expensive cars you can sell, and buy cheaper ones? Then use the cash to pay if the credit card?