where has the credit gone?

[winterblues25]

I’ve usually never had a problem being accepted for credit but just tried to increase my credit limit on my card recently and was refused, new balance transfer card and loan applications refused, credit score good, even the balance transfer offers on my credit card which I’ve had for years have been withdrawn??

So do you have ANY savings? You keep mentioning gloves… I mean you couldn’t buy a two pack of gloves from Primark for something like three quid if you can’t budget that in your real budget, then there’s something seriously wrong. How many pairs of gloves does a child need? Mine never fucking wore them anyway 🤣

Doesn't fit the OP narrative of banks being evil, but yes I have recently been offered 0% balance transfers (to answer the original question). I also have a loan and every time I log on, they ask if I want to increase the limit.

Banks are there to make money, not help families - I guess you can choose to accept the interest rate and carry on or choose to buy less/cheaper items.

Kids are expensive - not many families can easily afford 5, so you're not alone in struggling. Once your older ones graduate, I'd recommend saving their uni costs in anticipation of the younger 3 starting.

I also have toddlers and school age children, high mortgage repayments, activities to pay for and a good job without family help and live relatively comfortably without credit. So it can definitely be done. The issues arise with having available credit in the first place as you are then spending money you don't have and then continually playing catch-up and it turns into a vicious circle as you then have to spend more money on credit to make up for the extra you are using to make repayments. I know that's not the case for people who pay off in full, but it seems to be the case in this instance. Maybe stop using the card and focus on repaying it rather than trying to increase your credit level.

As they say on MSE op hasn't had her light bulb moment. I do feel for you op. It is hard. Basic living is expensive these days. Things aren't what they used to be.

I put 8k in a calculator paying it off a minimum payment. Even just on the waste of money that is interest try to get it down.

At 20 percent apr
Your current card (minimum payments)Based on minimum payments, it could take 36 years and 1 month to repay, with an estimated total repayment of £21,130.02

or paying 3 percent of minimum
This £8,000 debt will take 25 yearsand 1 month and cost £7,984 in interest.

at 7 percent
This £8,000 debt will take 24 yearsand 9 months and cost £3,075 in interest.

To answer this question: no, I haven’t personally experienced a pull back in credit offerings. If anything, they keep offering to extend my credit. (I use stozing as a tool with my CCs—rather than being “in debt” I use CCs as a tool to earn me money.)

Op try MSE and post and SOA you could here also. I bet there are many ways you can save without the kids going without.

I am 45 still paying mine off. I mean ai would love it to be. You must have an earlier plan than me.

I think the issue now is that you’ve been declined for too much—CC applications and now loans. Rejections sit on your credit report for a long time and now every future financial institution that you apply to will be able to see that you’ve been rejected from multiple applications. The smart thing to do is to only apply for products that you’re guaranteed to get, without leaving a black mark on your credit score by way of a rejection. Martin Lewis has tools to show you the guaranteed products.

OP you have your head in the clouds! You are massively over estimating your income , you don’t have the income to sustain the lifestyle you are currently living.

And this is your problem, you are not prepared to make financial changes to love within your income..kids can be dressed in any clothes, they don't need to be decent which I'm reading as branded clothes. Food, again ditch the brands for store bought own labels, they aren't terrible and I find some to be far nicer than the brands. School trips aren't essential and it won't affect your children of they miss the odd one.
With £3900 income after deductions you and your husband should be able to pay more than minimum payments.
Don't moan you can't get better credit when you aren't prepared to make changes to provide you are a candidate that can manage credit.
I earn half what you and your husband earn, I don't get UC top ups, I have a mortgage and a car, I commute, yet I can afford tasty food and clothes that last without needing to put things on credit.
Your kids really don't need spare uniform, I mean seriously how often are you and husband that I'll you cant put a wash on

And thankfully the bank is aware of thad and hopefully preventing the situation from further spiralling

@winterblues25 do the older children live mainly with you or with their mother? If their mother, their student finance should be based on her income not your husband's. That might increase the amount they receive.

Credit wise - at the very least over pay each month by £100 to start reducing the amount you owe. With almost £4k income per month very minor adjustments should achieve this.

What I would say is the banks are cracking down on “persistent debt” in recent years. I have a few credit cards - prioritising paying off one and then switching to another. The ones with minimum payments are chasing me a lot more than in the past. Telling me it will take longer to pay off etc. so maybe you need to see the credit each month as a priority to pay off as much as possible. Not judging as I’m on the same boat, but I wouldn’t dream (now) of more credit while paying minimum payments because that approach got me into a right mess. Yes you transfer the balance, but then you put the odd thing on the old card… and so on and so on.

I agree with this. A lot of people struggling get 2nd credit cards and max them out and only make the minimum repayments. It’s best not to get another one, but to pay off your debt instead. Is there anything you can do to pay it off? Could you contact step change or another debt advisor for help? Could you access food banks to help you with food banks? We have a local one that’s open for anyone struggling.

Do you have one card at a better rate than this one? A high interest rate like that is going to spiral. You can say you're fine with it but you really are storing up problems for yourself.

If more credit is no longer an option, what will you do if the boiler breaks or the roof leaks? It's okay saying this is the minimum level of day to day life I will accept but if something goes wrong you'll be much more impacted than buying clothes for a toddler on vinted for a few months.

In your position I would have six months of serious belt tightening and try to chuck every spare penny at the high interest card.

You may also need to be clever in the way you spend if purchases are available on the lower rate card - but this requires discipline. If you need to spend £50 do so on the lower rate card and immediately pay £50 off the high rate one

At the moment yes your debt is manageable but people are trying to warn you that once your minimum payment does nothing more than cover the interest, it soon gets out of hand.

Your children are young enough not to be impacted by second hand clothes, taking picnics rather than eating out etc. Deal with it now and don't end up in this position when they are teenagers and really will care. Phone every supplier of your TV, internet, car breakdown etc and see what you can shave off then put the difference straight to the card.

Make sure you always take drinks and snacks from home so there's not £15 here and there for something that doesn't really add to quality of life. Still go on the day out but take your own food so there's not another £40 on top. I agree with you that is better continuing school trips and swimming lessons but there are plenty of ways to make smaller adjustments without depriving your kids in any way.

Be utterly ruthless until summer and then see how your credit rating looks. This is absolutely a short term pain for long term gain situation.

I think you've fallen into the very common trap of thinking as a higher rate tax payer you deserve a much higher standard of living than what it will actually buy you. Being a higher tax payer used to mean that you were a high earner but with the constantly frozen tax bands it no longer does, especially with a family of 5.

We are both higher rate tax papers and shop on Vinted, watch the electric like a hawk, have cut back the food shop, kids don't get everything they want etc etc. Sadly you have to live within your means and your kids will get far more expensive as they get older, phones, gym memberships, driving lessons, possibly Uni etc etc and at some point you have to say no, I can't afford it.

I think my concern would be that if you can only afford to pay off £2k per year, and the interest is going to go up to £3k per year, you surely aren't going to be able to make the minimum payments? Because I'm pretty sure the minimum payments have to be greater than the interest so people's debt doesn't just keep increasing.

I think banks have a duty to take steps if you are in ‘persistent debt’ ie just paying the minimum every month. This is after years of them happily taking the minimum while charging whopping amounts of interest and people getting into real trouble financially as the debt grew and grew. Maybe related to that? I do wonder if you are paying for essentials on credit that you cannot pay back in full that maybe you need to find ways of cutting back. I say that as someone going through the process of cutting back on things as the money is just not going as far as it used to and I realise we have to change how we spend. Good luck.

The only people I know who used credit cards for every day items pay off the whole balance every month. They only use the card because they get points for doing so. Relying on credit is a bad habit.

Just to add as well, I have recently had the credit limits on both my credit cards automatically increased without my even asking, but admittedly I don't have anything on a low rate etc because I just use them to pay for things over £100 for section 75 protection. I was actually thinking when it happened that I thought it was quite high risk that they were just increasing my credit like that, but it's also convenient for me as my income has increased so I do want to be able to spend more on e.g. a holiday etc.

Yes this is going to be the case if Op cant find another 0% transfer.
The days of stoozing are over @winterblues25 as people to just keep spending and transferring to a new card.This is termed by lenders as persistent debt and regulations changed to stop this.
Intetest rates were very very low, credit( debt) was cheap, now its not

Things will get very difficult from now on if you dont make changes.
Everything you spend will cost you an extra 25% per year anyway so those bargain coats arent really bargains and then the interest really accumulates and you pay intetest on the interest accumulated
Can you sell on Vinted and then use that money to buy spare uniform, next season coats/ gloves?
If you are buying food on a credit card it makes no sense to pay for swimming lessons- could a family member pay as a birthday gift instead?
You are heading towards this being out of control so at some point changes will have to be made-better to make them now rather than when the debt is spiralling.

yes, I've had this. Have you applied for anything else recently? Changed mortgage? I waited a few months and then all was fine. I've also fallen into the trap of buying things on there in the sale. I also recommend Dave Ramsey, I'm working through his steps. Allen carr the easy way to get out of debt is good too. My monthly payments are a lot and I can't wait to get rid of them!

Totally get what you're saying about buy cheap, buy twice. This is my thinking too, so I'd rather buy something decent on credit than buy and replace a cheaper option. I've tried to change my mindset about this though, and I've snapped all credit cards and I'm trying to sell stuff to save up, which is annoying when my kitchen floor is breaking up (buy cheap, buy twice 🤦‍♀️) and all I want to do it hand over a card and get a new one instantly!

This is not necessarily the case. I have high childcare costs, husband in average job myself a good job. 2 cars, expensive commute, mortgage. No financial help other than government childcare schemes which weren't in place for many hours till recently and still leave us with a bill of 500+. We don't need or use credit cards for day to day spending. Surely that just means you will never pay off the debt? I don't know anyone who lives day to day on credit, although I know plenty for whom things are financially tight

If you're not in loads of debt, just pay it off and then live within your means instead of borrowing. Even low rates of interest increase how much you owe.

They look at what % of editing credit you’re utilising too. So if you’re using a high % of your current credit limits, that won’t go in your favour.