Credit card with limited income

[marshallzumarubble]

I have been a bit stupid and found myself with £7500 on a credit card. The back story is that in September 2014 a friend needed some money, she was completely desperate and couldn't get a loan as she was currently out of work etc... I had a credit card with nothing on it (paid it off years ago) and, very stupidly, offered to let her use it for her bills, food and other expenses until she got work. She ran up about £9000 on it over the course of about 8 months.

I know. Completely stupid of me but we were very close and I had known her since we were at university. I was confident that it would be a short term thing as she was looking for work and qualified in a high paying industry. Sure enough, last summer she got a new job and stopped using it, thanking me hugely and promising to pay it all off quickly. No problems.

In the autumn my friend was in a car accident and died from her injuries. It was terrible and I was heartbroken, we were very close and it was absolutely devastating. Now though, not to sound callous, I am left with the debt. She had already paid off £1500 of it so it leaves a balance of £7500.

I have resigned myself to the fact that I will have to pay it off; there is no other option, she left nothing and legally it is my debt.

The problem is that the interest free period on the card has run out. I went to open a new one and transfer the balance but I found that I can't open a new card as I work part time (I have young children) and don't earn enough money to qualify for a new one.

I am now sort of stuck in no man's land; I can make the minimum payments without too much issue but I am paying two thirds back in interest each month! I called the company who said that unless I was unable to make any payments (which would obviously impact on my credit score) then there was nothing they could do to limit the interest. I am reluctant to apply for cards as I am aware that a rejection will appear on my score as well.

Are there any companies or card providers that anyone knows of that offer interest free balance transfers for people with a low income?

I don't want to spend on it at all. I just want to clear the money. I can manage the minimum each month (although to be honest I could definitely use the money elsewhere, we aren't well off in anyway) but at this rate it will take me years and years to pay it off.

Any help, recommendations or advice would be massively appreciated. I am at a loss as to what to do really.

If you're on a low income no one is going to give you that amount on a credit card. Sorry.

How much spare income do you have after paying bills each month? A loan may be your best bet to get it cleared in full, and the interest rate is likely to be a lot lower.

Alternatively you can set up a standing order (not a direct debit!) for slightly over the minimum payment. This way as the balance goes down, you are still paying the same amount monthly but less interest will accrue so it pays it off a lot quicker.

If you go on the Martin Lewis site, there are some credit cards that you can do a sort of 'soft' application for - it tells you if you are likely to be accepted, but isn't a full application so doesn't show up I. Your credit file. Might be worth a look?

whatever you first payment is set up a standing order for that amount every month. If you can afford it the first month it should always be manageable. That way as the months go on at your minimum payment decreases you will pay more and more of the interest off.

What an awful situation

I think you will struggle to get any more cards, so you need to look at how best to manage the debt that you now have

Pay as much as you can each month to clear it quicker

x

Oh dear.

You won't get an interest-free balance transfer on a low income, I'm afraid.

How much more than the minimum can you afford to pay each month?

I assume you have no one (DP/family etc.) who would be willing to loan you some money to clear it?

I think you need a loan if possible in order to pay it off. Do you own your own home (mortgage etc.)? It may be possible to approach your bank and see if you can add to your mortgage.

CC interest will be at a high rate, a loan over a fixed term would be much lower.