Credit Card Advice

S

stinkerbelle

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I have two credit cards, maxed out for years now and I'm only able to pay just over the minimum payment each month. MBNA Credit Card 3700 & AIB Mastercard 1300.

I also have a Car Loan and was refused a top up to pay off these cards, I was also refused credit else where. I read somewhere on these boards that I can cancel the cards/close the account with the lenders so that I can't keep ordering new ones and running up more dept. I still have to pay the balance and interest but I basically can't use the account again.

Does anybody know if this is possible?

Thanks.
 
You are a credit card company's dream customer ! Paying each month, but barely over the minimum payment. They will do very well out of you :mad:

Without sounding too harsh, and not knowing your circumstances, you really need to take a look at your finances and do everything possible to stop "ordering new ones and running up more dept." Otherwise, you will be paying off the cards forever and giving the cc companies an obscene amount of interest.
 
Why are you still using the cards? Have you switched to 0% cards? Paying these cards off should be your top priority over everything. Take up a part time job if you have to.
 
You can cut up your credit card at any time, this will prevent you using it, but you still have responsibility to clear the outstanding balance.

You may be able to transfer the balance on one or both credit cards to a new credit card (not with MBNA or AIB) and avail of a balance transfer rate of 0%, i.e. you pay zero interest, and have up to 9 months to clear the balance at this rate. Obviously you should cut up the new card the minute you get it.

If (and it could be a big 'if') you qualify for a balance transfer, over say a 6 month period you would have to pay €833 a month to clear the balance-but I gather this may not be within your ability to pay.

Another option would be to approach your local credit union, who may be more understading than more mainstream lenders.

Talk to MABS (www.mabs.ie) if things are getting on top of you and have a look at the many other threads on AAM on getting out of debt.
 
(posted this before I read yours ccovich)

I know this. That's why I'm about to set off on the road to start once and for all paying them off, cutting back on spending, possible extra work etc.

I've read a lot of posts re credit cards/spending etc this afternoon, and have taken on board all of the advice.

I'm just wondering is it possible to put a stop to cards being ordered?? to take the temptation away (as I can safely say I'm not responsible enough to have credit cards) until I get my spending on track to be able to put more towards repayments every month. I'm on 28K, renting so usual expenses, 10K carloan, 5 k credit card debt, no savings.

I'd no idea I could negotiate interest with the company until I read another post, so will try that too.

I'm 25, and as I said before am serious about my debt and saving for the future for the first time, so please don't berate me.
 
stinkerbelle said:
I
I'm 25, and as I said before am serious about my debt and saving for the future for the first time, so please don't berate me.
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If you are serious about it, you should be able to resist ordering more cards-banks won't prevent you from doing so.
 
You can cancel your cards & the accounts will be closed. The only way you can stop card 'being ordered' is not to apply for them! I'm not trying to be smart - just pointing out that once a card is closed it stays closed.
 
oh I know, I know. I read something that I picked up wrong, thought it was possible to technically close the account while there was still a balance, no more cards could be ordered, interest still accrued obviously, was just trying to verify that point. Now I realise if that was possible everybody would go down that road. Thanks for replys though.
 
I don't know if it is possible to put a block on other cards being issued. Would you have to contact every cc company and ask them to blacklist you ?

Regardless, I don't think it is a good idea to go that route. Who knows what position you will be in in future. Admitting to a lender that you are "not responsible enough to have credit cards" could work against you at some stage.

You have got as far as posting to this board, so you are no doubt serious about it. Can you not just cut up the credit cards and exercise extreme control on your spending ? Set yourself some goals for clearing certain amounts of debt by a certain date and then see if you can beat these goals.
 
Polo-Boy said:
I don't know if it is possible to put a block on other cards being issued. Would you have to contact every cc company and ask them to blacklist you ?

Regardless, I don't think it is a good idea to go that route. Who knows what position you will be in in future. Admitting to a lender that you are "not responsible enough to have credit cards" could work against you at some stage.

You have got as far as posting to this board, so you are no doubt serious about it. Can you not just cut up the credit cards and exercise extreme control on your spending ? Set yourself some goals for clearing certain amounts of debt by a certain date and then see if you can beat these goals.
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Thanks Polo Boy. extreme control with my spending is what it needed,am just at that stage where 'entertainment' is costing me more than my rent. a complete change is needed.
 
lots of money smart people on here to give advice, here's some from a money-idiot :D I left mine at home. If you're like me you have trouble considering card money real money and whip it out on a whim to buy something you like a nice meal out etc. They are useful for booking flights and the like so I want to keep mine. I find tucked away at home I can leave it there and then when I'm out and about I just don't have it on me. Not very drastic and dramatic when you feel like slapping yourself but it works so far. Get saving in the credit union even if they won't help you with the loan right now. They take mine out of my wages before I can spend it and I have hardly noticed the loan I've been paying off with them which was €8000 (for wedding) last september it's now down to half that. Save even a tiny amount, I know you should put all your spare cash to the credit card but I'd put even a tenner a week in the credit union.
 
just a though, as far as I know you can reduce your limit without having got the balance down that far, e.g. if can ask them to reduce it to €1000 while your balance is €4000. Mind you better check this doesn't mean you are constantly fined for being over your limit. A friend also reminded me you can have a black credit card, i.e. lodge money into it so it's there when you want to use it. Laser is also handy.
 
Try this for "entertainment" stinkerbelle: do up a spreadsheet with your current amount of debt and work out how many months it will take you to pay it off at the minimum payment (even if you manage never to use the card again). Then look at the amount of interest you will have paid in this time. Then look at the difference that paying an extra €100 off each month will make.

I tried that method before when my cards got out of control. It was a real wake-up call, and it certainly made me think twice about the €5 I spent each morning on coffee and a newspaper !
 
If you send me your email address in a private message, I will check my laptop when I go home and see if I can find the spreadsheets. It's not difficult to do, but you would need to know a little about Excel !
 
moneygrower said:
just a though, as far as I know you can reduce your limit without having got the balance down that far, e.g. if can ask them to reduce it to €1000 while your balance is €4000. Mind you better check this doesn't mean you are constantly fined for being over your limit. A friend also reminded me you can have a black credit card, i.e. lodge money into it so it's there when you want to use it. Laser is also handy.
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As well as the possibilty of having to pay additional fees for being over limit I believe MBNA at least report information on credit cards to the ICB so they might end up putting a black mark on your credit history for being over limit.

That said there is nothing to stop you reducing the limit every few months to reflect what you have paid off. If in say 3 months time you have paid E1000 off the original E5000 then reduce the limit to E4000 and repeat every so often as you make further progress.
 
thanks polo boy but I don't think I'll go to all that trouble to find out the bad news. see no wonder I'm useless with money. bloody laziness is all it boils down to.
 
rkeane said:
Have you switched to 0% cards?
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If the poster has been refused credit then its highly unlikely he/she'll get any kind of card, never mind one with a 0% interest free offer.

I'd suggest cutting up the bigger card entirely and working on clearing it first, you don't need 2 credit cards.
 
stinkerbelle said:
Thanks Polo Boy. extreme control with my spending is what it needed,am just at that stage where 'entertainment' is costing me more than my rent. a complete change is needed.
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No offence but extreme growing up is what is needed.

It is immature to expect the credit card companies to act like your mammy and not issue any cards to you - as stated above, they love you, they're making a killing off you.

If you haven't got even that little willpower to resist ordering new cards after you cut your one up, you need serious help. I'm not being funny, but have you thought about counselling etc? If you have that little control over your urge to spend and acquire more credit cards, it could be that you need professional help.

Otherwise, cop on, grow up, take responsibility for your actions - you're 25, not 15. Cut your cards up, draw up a realistic budget and stick to it, cut out holidays, stop socialising so much (your friends will still like you, honest), stop getting take aways if that's what you do. Then, once you have your debt under control, slowly start treating yourself again.
 
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