Credit card missed payment - please help!!!

[ShePersisted]

Guys, I have been an idiot. I've missed a payment on our 0% interest credit card and now face the standard 17% apr on our balance -- which is £3,700.

Can anyone advise on whether it makes sense to transfer the balance now to a new, 0% balance transfer card for +/- 20 months and pay the 1.45% balance transfer fee? The original credit card was initially intended just to see us through these very expensive couple of years while our daughters still have very high childcare costs and, generally, I am good with money and not debt happy at all.

Is this a good idea? Is it likely to work? Is it worth the hit on my credit report? Does anyone have better ideas? I otherwise have no negative marks against my credit report. Please help!

(Also please don't judge me too harshly -- believe me, I'm already beating myself up about this.)

No-one should judge you. The banks work very hard at getting, and keeping, people in debt. It is worth asking them to keep the 0% on your account. If things get difficult I can strongly recommend contacting Christians against Poverty.

Thank you -- unfortunately no CAP in my area

Try calling them up and explain it was an honest mistake and won’t happen again. They may reinstate the 0% offer. Not guaranteed but it’s worth a shot.

I did try that but they said no. I'll probably try again tomorrow but I don't hold out much hope.

You could consider finding another 0% balance transfer card to put the balance on to. If it starts to become unmanageable then definitely contact a debt support agency rather than ‘going alone’- the agencies can get the bank to freeze the interest and arrange affordable repayments so you can get on with your life.

It would definitely be better to face this head-on now than some time in the future when the debt could be unmanageable.

If you manage to transfer the debt to another 0% card, don't forget to set up a direct debit to pay the minimum payment so you don’t forget again

Is it worth the hit on my credit report?
The effect on your credit report will be nothing compared to the hit it will get for a missed payment. So open a new card now before the missed payment is reported to the credit agencies.

I would get another credit card with zero% transfer and close the current one once you have transferred to stop temptation of further spending.
I would set up a minimum balance payment to go out if your bank every month so if you forget about the date the card still gets paid and then overpay when you can.
No judgement from me. I've been thete in the past.

I had this happen recently due to an accidentally deleted direct debit on a phone app.
I rang up and they reinstated it immediately as I threatened to move the whole balance there and then. I did make an immediate payment though to cover what was missed. I do quite a good job of getting my own way on the phone though - it's all the years I dealt with complaints in a previous job! I managed to get the woman on the phone to apologise to me somehow.....

I've never done anything like it before - so I was glad to get away with it. Mine was a balance from our bathroom refit which went over the saved budget due to some unexpected issues that were found after work had started. We had to finish it and didn't have enough cash so had to borrow £3k on credit.

If they won't re-instate it I'd definitely transfer it to another card with 0% asap and close the card with the missed payment maybe?

If you apply for a new card do it now. Your credit report will turn to shit when the late payment hits.

New card now before affects credit rating.

Direct debit for minimum set up.

Lesson learnt - all fine - no beating yourself up!

The banks have everyone trained to accept debt as normal and keep them in it as long as possible. If you do get the balance transferred to a 0% card then I would suggest paying it off by the end of the 0%.
The bank will be hoping you don’t do that so they can make more money out of you. One missed/ late payment on a credit card won’t stop you getting another card. I went bankrupt two years ago (£42000)- am now debt free, and I have a credit card. Don’t let the banks trick you with ‘credit-fear’, you can live without debt as I have learned.

Either that or just carry on worrying about credit ratings and such nonsense like everyone thinks they should instead of saving up for things.

You're right @Grantleyreef. And all my instincts are with you. I got the new card, with the extended 0% balance transfer and this ended up being a not-as-terrible-as-it-seemed error. The direct debit is already set up and we should have the debt paid down well before the 0% term expires. Thanks to you all! Everyone makes mistakes, and I'm going to make it my business not to make this one again...

Great ShePersisted,

I’m really glad you sorted it! X

Change the direct debit for a standing order instead and you'll pay the debt off quicker!

Change the direct debit for a standing order instead
But if you do that, there's still a risk of missing a payment and being responsible for it. At least if its a direct debit and a payment fails, it will be your bank or credit card company's fault (unless you haven't got enough money in your account)