Credit Card Debt

tech bro

Hi folks,

I am new to this forum, joined in to ask similar question re: credit card...My debt is not that bad its only 2.5 k to AIB and 4 k to credit union and other small debts which are irrelevant. Im in college at the mo and will be in 2012 as well. Repaying my minimum commitments on a monthly basis. The only debt I am not able to reduce and having problem with is AIB credit card, as the interest of 45 is almost equal to my minimum payments, meaning I will be in same shape in foreseeable future until pay off the debt in 1 go. I wrote them a letter and explained the situation but to no help, they want interest, BTW I paid them over 1.5 k of interest alone for the past 2 years. I tried to negotiate with AIB to freeze the interest and let me repay without interest charges applied. They said this can only be done if I agree to be reported to ICB because I am charged bad debt. My question is the following: is it worth to get reported to ICB over 2.5 k or is there any other way. Spoke to MABS already, they said that is the only way to stop the interest. I simply cannot afford to pay off the amount in one go but cannot allow them to have a free ride on me any longer...Please advise what the best solution here...Thank you...

filmbuffboy

I would personally not go down the MABS route unless I absolutely had to. Seeing as your debt is reatively small I would consider going down to the credit union and asking them for a loan to pay the CC off in full. That way no more pesky CC interest and you will be able to start taking sizeable chunks off the loan. Have you been keeping up to date with your credit union repayments? if so I dont see any reason why they wouldnt do this for you.

Another option is to do a CC balance transfer to another bank that is offering 0% interest for a set period so you can work on reducing the balance.

Whatever you do dont rack up more CC debt if you manage to shift the balance to another 0%CC or to the Credit Union.

Whatever you decide, good luck! It sucks being in debt, I know, Ive been there!!

chris85

filmbuffboy wrote: »

I would personally not go down the MABS route unless I absolutely had to. Seeing as your debt is reatively small I would consider going down to the credit union and asking them for a loan to pay the CC off in full. That way no more pesky CC interest and you will be able to start taking sizeable chunks off the loan. Have you been keeping up to date with your credit union repayments? if so I dont see any reason why they wouldnt do this for you.

Another option is to do a CC balance transfer to another bank that is offering 0% interest for a set period so you can work on reducing the balance.

Whatever you do dont rack up more CC debt if you manage to shift the balance to another 0%CC or to the Credit Union.

Whatever you decide, good luck! It sucks being in debt, I know, Ive been there!!

Good advice to see if CU will help out. Would be lower interest by a good bit. Have a chat with them. They are usually very helpful sorting these things out.

filmbuffboy

actually the more i think about this the more im convinced you shouldnt go down the Mabs route and freezing interest unless you absolutely have to. Do you really want to get locked out of the credit market for years over such a meagre sum of money?

Will_H

If you go down the ICB route you will be 'blacklisted' to all lending institutions for 5 years. Chris85 & filmbuffboy's suggestion is the best option.

tech bro

Thanks guys, I will try to approach CU as suggested, seems like a best solution at the mo, been talking to MBNS to transfer CC debt to them on 9 month 0% once you join them, but unfortunately they don't open account for students...Yeah, hopefully CU will be considered, I owe them 4 k by keep up to my repayments every month...Thanks again...will let you know the outcome...:)