Credit Card Debt

LegacyUser

I have a question here. I owe about 1500 on a credit card which i am always late paying. I had a credit card b4 which was cancelled by the bank. The thing is I was lazy and careless on my debt. The problem is I ordered a MBNA credit card last week and i did not get approval. I dont know what to do. I understand that ill pay all my debt off in the next 6 weeks. I want to know if I will be in trouble if I ever go to get a mortgage and if i pay all my debits off will it still effect my credit rating and how i can boost my rating.

If find this stressful

Please Help

Ruu_Old

It might be good for you to talk to someone at Mabs. Also get a copy of your credit report from the ICB and see what exactly is on there.

Victor

If you have debt, do not get more debt. Its a vicious cycle. Possibly swop it for a loan, but then reduce your CC limit by the amount of the loan.

Work out your income and expenses. Keep a little black book of what you are spending. Talk to MABS, your CC company and arrange a schedule to pay it off.

Bradidup

I had hassle with banks over five years ago when I went into trouble with a business. I was getting endless "hate mail" from several banks and ended up taking out a personal loan with the local credit union to shut them up.

It took me a while to build up my credit rating again, I would be very slow to borrow more than I can chew. A very good alternative to credit cards are these pay as you go cards you top up, https://www.3v.ie/

ambman

did you build up your debt online maybe playing poker

SoBe

as ruu said get your credit report from icb,you can even do it online.

costs about €6 and you can pay by laser so u dont have to use the cc

EDIT: forgot the most important part,dont just get another card.its only a short term fix to a long term problem.it will make it worse in the long run

Savman

tered77709 wrote:

I have a question here. I owe about 1500 on a credit card which i am always late paying. I had a credit card b4 which was cancelled by the bank. The thing is I was lazy and careless on my debt. The problem is I ordered a MBNA credit card last week and i did not get approval. I dont know what to do. I understand that ill pay all my debt off in the next 6 weeks. I want to know if I will be in trouble if I ever go to get a mortgage and if i pay all my debits off will it still effect my credit rating and how i can boost my rating.

If find this stressful

Please Help

€1500 is not loads. I don't see why you tried for a second card. Just pay off your current card and you'll be grand.

0utshined

tered77709 wrote:

I want to know if I will be in trouble if I ever go to get a mortgage and if i pay all my debits off will it still effect my credit rating and how i can boost my rating.

If find this stressful

Yes you probably will and yes you will but it's not the end of the world. If your last credit card was cancelled by the bank then that'll remain on your record for 5 years. Contact http://www.icb.ie/ for your current credit report ( it costs €6 ) and get in touch with Mabs.ie to figure out how to get your finances in order.

I know it seems stressful but once you start working on getting yourself in order it doesn't feel as bad. There used to be a good "dealing with debt" board on fool.co.uk which you might find useful.

seamus

If you find yourself with a debt that you're struggling to repay, then your first port of call is to cut off the source of the debt. Cut up and cancel and credit cards that you have at the moment.

If you're going to be shouldering this debt in the medium-to-long term (> 1 year), then borrow the money from a lower-cost source. A €1500 personal loan @ 8% p.a. is much cheaper than a €1500 credit card @ 14% p.a.

It will cause problems getting mortgages and the like, but not *that* much. The longer you keep yourself debt-free, the better it will look. Although to get a *better* credit record, you need to borrow more and pay it off regularly, I wouldn't recommend getting into any more debt if €1500 is a problem for you.

Beruthiel

ambman wrote:

did you build up your debt online maybe playing poker

I fail to see what difference it makes how his debt built up.
B

Victor

While gambling debts are not enforceable in Ireland (and some other places), I suspect such situatiosn are a debt to a CC company, not a gambling website.

Steyr

Those Credit Cards are terrible why do you need them can you not just use the other "top up" cards instead you know the vouchers that you can use anywhere just put whatever you need into it, its the same as topping up your phone. Credit Cards suck, you dont need them.

LundiMardi

Do yourself a favour, cancel the card.

CC companies tend not to lower or cancel credit cards until the balance is payed. I'd even go so far as to say your card was stolen, so they would have to cancel it.

I have the same problem, built up a bit of debt over the years and the only way to stop it building is the cancel the card completely, not lower the limit, but just get rid. Then i can focus on getting the debt cleared.

Mezcita

OP check out www.moneysavingexpert.com

Heaps of advise of what to do to help getting out of credit card debit. Highly recommended.

Sangre

Try and apply for a card that offers a 0% balance transfer, just apply to a few. If accepted they take the 1500e balance onto the new card and you pay it off at 0%, just make sure you don't use the card after.

johannson

My advice to you is to take control. Be proactive and contact the credit card company and make arrangements to pay off the outstanding balance.
If you are receiving letters from the company requesting payment, do not ignore them. Act now because the next stage will involve debt recovery agencies or solicitors.
I have been through this process myself and have had summonses served upon me for defaulting on loans. Although my debt was of a greater amount the process is the same for all cases.
In the end these companys will persue to the ends of the earth to get back their money, and rightly so, after all they did lend it to you in the first place.
Cut the cards up, clear the balance and live your life without the burden of debt.

wyndham

Beruthiel wrote:

I fail to see what difference it makes how his debt built up.
B

Gambling activity on credit cards/accounts is noted by financial institutions and, for obvious reasons, affects credit rating.

Cormic

I had a similar problem about 12 years ago. I ended up getting a personal loan out for 2 years and paying off that way. I still have a CC but I pay it off at the end of each month.

I believe that it was the correct course of action at the time. I have not had problems with loans since.