Credit Card repayments killing me

Drummerboy2

My OH was made redundant last year and I have taken over the management of the credit cards and all other bills as I'm still in secure employment. Anyhow I went to my local bank and asked for a top up loan (I already have loan out with them with 2 years left). Despite my good track record on replaying loans they refused saying I wouldn't have enough disposable income left.

I have plenty of equity in house but I took out a loan a couple of years ago for renovations and don't think the building soc will give me a loan.

As it is I'm crippled with the cc payments. BTW I haven't missed any. We owe about 16000.

If I could get a loan, cut up the cards and start again, I know it would work but where can I go for loan.

daithijjj

Drummerboy2 wrote: »

My OH was made redundant last year and I have taken over the management of the credit cards and all other bills as I'm still in secure employment. Anyhow I went to my local bank and asked for a top up loan (I already have loan out with them with 2 years left). Despite my good track record on replaying loans they refused saying I wouldn't have enough disposable income left.

I have plenty of equity in house but I took out a loan a couple of years ago for renovations and don't think the building soc will give me a loan.

As it is I'm crippled with the cc payments. BTW I haven't missed any. We owe about 16000.

If I could get a loan, cut up the cards and start again, I know it would work but where can I go for loan.

Hi.

I have worked previously with two credit card companies (8 years ago) so il just give you my 2 cents on your situation.

First of all, congrats on keeping up your payments. It is important that you keep the bat channels open with your provider so i would seek an appointment with them to possibly come to an arrangement whereby you could lower your monthly payments. It is a slippery slope if you have fallen on tough times and are over burdoning yourself, the risk of default and further costs to you is not what you need. If you go to your provider/s and talk to them about this, they will do what they can for you. I have been in the situation with people on the phone who have over stepped they're credit, there has been begging, tears etc after acruing further interest and fees due to missing payments.

As far as the loan goes, im afraid i couldnt comment on that for you as i dont have much knowledge of whats out there, hopefully someone will come along and give you advice on that, good luck.

Mr. Presentable

Do you have a car you can sell to raise capital? A credit union loan would be ideal, but sounds like you don't have that option. All you can do is economise all round and do your best to pay more than the interest every month. 16000 is a lot, though.

Ste.phen

COuld you do a balance transfer to a new credit card? Some of them allow that at 0% interest for a few months don't they? That would stop the amount you owe going up, at any ratE?

PCPhoto

Ste.phen wrote: »

COuld you do a balance transfer to a new credit card? Some of them allow that at 0% interest for a few months don't they? That would stop the amount you owe going up, at any ratE?

problem with that is that in the terms and conditions of the 0% balance transfers must be paid off in full after the given 6 or 9 month (0% time)....ie. if you transfer 5K you have 6months to pay off that 5K or it gets loaded with interest.

(Based on experience of my own credit card balance transfer)

peanuthead

As said above, get yourself down to 0% immediately. Thats what I did, it helps a lot. Try to pay off a little more than the minimum amount too, I know you are smashed, but even 20euro more than is asked of you would get it down enormously over a period of a year.

After the 0% is up, tell them you still can't afford the 13.5 (in my case, with halifax) Actually if you're not with halifax, go with them now. Transferring your cc balance is the easiest thing ever.

After my 6months interest free were up, I called them and asked them for more. They didn't give it to me, but without hesitation she offered me a choice between 3 months @ 3% or 6 months @ 6%. Just like that. Which you can agree is a massive drop from 13.5.

Don't be tempted to go with the 3 months though. Take the 6 months at 6%. That will take you up to next Christmas at least.

Good luck

Drummerboy2

Thanks for the replies guys.