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Original poster

Need help getting out of this mess.

24 replies

Leftphalange100 · 31/03/2024 10:00

I've got myself into a mess with credit cards, entirely my own doing. I haven't spent anything on them since last October, and have got rid of 1 and closed the account. I have 2 left, 1 with approx 2500 and the other approx 5k so 7500 total. Please be gentle, I know I've made bad choices and trying to sort it.

It is really stressing me out. I've been paying more than the minimum payment but I can't afford much. This month for example I paid off 250 across the 2 cards, approx 130 went straight back on as interest. I've looked at balance transferring to a 0% but apparently don't qualify even though I've got a good credit score. I have also looked at a personal loan but according to websites like money saving expert, their calculators also say I won't qualify?

So seems like I'm stuck with all this interest. Researching online it seems it could be because I was at the top of my credit limit. However I actually wasn't when I accrued the debt, as barclaycard cut my limit from 7500k to 5k meaning I ended up nearly maxed out and I closed an account losing a limit of 2800k.

What can I do- I'm so embarrassed by this in real life, and the interest each month is making it feel never ending. How would you tackle this? Most I can probably pay each month is 350. Thanks so much for reading.

OP posts:
teaandtoastwithmarmite · 31/03/2024 10:03

Could you pay the minimum on one and a larger amount on the one with more interest? Look at debt snowball plans.

Original poster
Leftphalange100 · 31/03/2024 10:08

Thank you, I'll look at a snowball plan.

It's just so frustrating. If I could get a personal loan this would clear the credit cards and according to the calculator, only pay about 600 in interest over the 3 years. As it stands at the moment, that 600 interest will be added on in 6 months!

OP posts:
DisplayPurposesOnly · 31/03/2024 10:09

I'd contact Step Change for their advice. Maybe it would be possible to get the interest frozen which would make it easier to pay off the balance. You could try asking the credit companies themselves.

Mindymomo · 31/03/2024 10:13

Have you contacted the companies to ask for a payment plan, that would be my first call, that way they may freeze some of the interest. You will need to give them details of your income and expenditure and hopefully they will give you a plan that you can stick to, to pay it off. I wouldn’t be taking out any loans.

Bumblebeeinatree · 31/03/2024 10:15

Have you tried to get a loan or just assumed you can't? Ask your bank they may be sympathetic if you have a credit card with them. Even if you can't get the full amount to pay off the credit cards it would help.

westisbest1982 · 31/03/2024 10:16

I would contact the companies and explain your difficulties. I think it’s unlikely they’ll freeze the interest charges, but they could reduce the percentage:

https://www.stepchange.org/debt-info/your-rights/freezing-interest-and-charges.aspx

It’s a horrible feeling have unsecured debt hanging over you. Regardless what they say about the interest, I would plan on having a very frugal year and throw everything I could on the debt - is there any chance you could pay a bit more than the £350 a month?

Original poster
Leftphalange100 · 31/03/2024 10:19

Thanks for your replies. I didn't think the companies could freeze interest unless you were in real financial difficulty which technically we are not, I can make some monthly payments. However you're right that I should try.

I've done a couple of the eligibility calculators on different websites and it says I'm not eligible. I am considering trying direct but worried it'll affect my credit score and make things even worse if rejected. My husband might be able to take out a loan as technically they are joint debts just in cards in my name. I just know we could pay the set loan amount every month, much less interest overall, and then cut up those cards so I'm not in this position again.

OP posts:
NearlyBritishSummertimeYay · 31/03/2024 10:25

Definitely try calling the bank/s they're with & seeing how they can help.

is there anything you bought that you could sell and pay a chunk off?

Was it bigger purchases that you 'needed' (like a bed/car repairs/washing machine) or just excess treats (meals out/hotels etc)

have you got control of it now? ( I see you've got rid of one card) but it's more the mindset you need to get under control.

Dong be embarassed, just make sure your head is in the right place now.

Mrsttcno1 · 31/03/2024 10:25

As you are able to make the repayments, they are unlikely to freeze or reduce the interest. They only tend to do that if you are struggling to make repayments and can demonstrate that via your budget, it’s quite an intrusive process actually, you have to give all income, all outgoings and any other debt info and THEY then make a decision. Considering you have £350 a month to put towards them, that’s going to be a no from them.

I would do as previous poster suggested and snowball it, that’s the best way. See which card has the worst interest rate and put the majority of your money towards that one first, just make minimum payment on the other one. I’d have a proper look through at 0% cards though just to make sure you aren’t eligible.

Bumblebeeinatree · 31/03/2024 10:30

Why are you not eligible for a loan? Have you tried asking for different amounts you may be asking for too much for your income. See if your DH can get a loan or both of you get smaller loans.

Original poster
Leftphalange100 · 31/03/2024 10:33

NearlyBritishSummertimeYay · 31/03/2024 10:25

Definitely try calling the bank/s they're with & seeing how they can help.

is there anything you bought that you could sell and pay a chunk off?

Was it bigger purchases that you 'needed' (like a bed/car repairs/washing machine) or just excess treats (meals out/hotels etc)

have you got control of it now? ( I see you've got rid of one card) but it's more the mindset you need to get under control.

Dong be embarassed, just make sure your head is in the right place now.

I have totally got it under control now. Haven't used any since October, we have cut our spending right back to basically essential purposes only with just some treats for the children.

It was accrued through a renovation project that went over budget, then unexpected bills, one for the car, another for a vet bill for our dog. And with rising cost of living etc we just haven't been able to get it paid off as much as we'd wanted to.

Can't wait to have it paid and some savings accrued again. Debt really is a horrible feeling.

OP posts:
Bjorkdidit · 31/03/2024 12:53

Have you actually applied for a balance transfer offer? The eligibility calculators aren't always accurate, one application doesn't actually tarnish your credit rating as much as people fear so it's worth a shot even if you only transfer part of a balance it will save interest.

Also you say 'we,' and talk about joint expenses being the reason for the debt. What's your partners financial circumstances and could they qualify for an interest free card to take on some of the debt?

Original poster
Leftphalange100 · 31/03/2024 13:52

Based on the calculators my husband would qualify for an interest free card. To be honest, I didn't think he would be able to balance transfer from an account not in his name though? Clearly I need to do more research on this.

OP posts:
RandomMess · 31/03/2024 13:57

Yes you can do a balance transfer onto a card in his name

RandomMess · 31/03/2024 13:58

I would then pay the minimum off the interest free card and put everything else into a savings account ready to pay it off when the interest free period ends. Means you will then have a buffer for any other emergency.

Original poster
Leftphalange100 · 31/03/2024 14:33

I've just had a look at different ones such as Natwest and Lloyd's but they are all saying that the card you're transferring from needs to be in your name. Maybe it's been tightened up recently, which is a shame as that seemed like a brilliant solution.

OP posts:
Tygertiger · 31/03/2024 14:37

You can definitely do a balance transfer to a card not in your name. Your husband applies for the card and then gives the details of the card he wants to transfer the amount to. It’s definitely doable - I think they know people do this for each other.

Original poster
Leftphalange100 · 31/03/2024 14:41

Do you know what banks do it? The only one that I can find which allows you to transfer from an account not in your name is Barclaycard, however unfortunately that is who my main card is with so can't use that one as won't allow transfer within same bank.

OP posts:
HumanRightsAreHumanRights · 31/03/2024 14:44

OP, work on clearing them (I'd go with the snowball method too if I were you) but DON'T close the accounts as you clear them, just put the card for the cleared one away and keep the account.

You will make it through and then you'll have these 2 cards available to use sensibly in the future, instead of potentially ending up with none.

Wishing you luck.

hedgehoglurker · 31/03/2024 15:21

He can try for a card with a 0% money transfer offer. They are often a better deal than balance transfer. He requests the amount, it is paid into his bank account, then you make the payment onto your card.

PineConeOrDogPoo · 31/03/2024 15:35

Ask bank for loan for 7500 which has monthly repayments of 350 a month.

Pay off the full balances immediately.

Cancel the cards if you cannot trust yourself.

Pay off the loan in 350 a month increments

In the meantime, create a budget that keeps you from living beyond your income and follow it.

PineConeOrDogPoo · 31/03/2024 15:38

^ If bank will not give you a personal loan, ask your husband's bank for one. Request a renovation loan from the bank if you have receipts from recent renovations.

Original poster
Leftphalange100 · 31/03/2024 15:49

PineConeOrDogPoo · 31/03/2024 15:35

Ask bank for loan for 7500 which has monthly repayments of 350 a month.

Pay off the full balances immediately.

Cancel the cards if you cannot trust yourself.

Pay off the loan in 350 a month increments

In the meantime, create a budget that keeps you from living beyond your income and follow it.

This is my thinking now too. Ideally I'd like him to get a 0% interest but worried he takes that out, they don't accept a transfer from the cards as they are in my name, and then he can't get approved for a loan. The money transfer option isn't bringing up much that is feasible.

Currently, he's coming up at 100% preapproved for a loan with affordable monthly payments. Will need to have a really good chat with him about it.

Good idea also to keep one card, I will keep 1 for true emergencies as I trust myself not to get into this mess again and once monthly payments for this is sorted I'm going to build some savings for emergencies.

OP posts:
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