# Getting rid of Credit Card debt



## Crea (27 Apr 2013)

I have a BofI credit card with a balance of eight thousand euro. At the moment i'm paying 250 per month but at this rate it won't be paid off till 2053 - or so they tell me. I have missed a few payments so I owe them around 600 in arrears. I really want to get rid of this debt but I haven't a clue how to pay it off. I am not working so the money comes from the family joint account with the AIB.

I have a credit union account and have around 100 in it but don't have a regular savings history with them.

I have a B of I account but that's for the childrens allowance and they money goes out as fast as it goes in.

AIB won't give a loan as they are not taking on new debt outside of the bank. They did give us a load to get rid of husbands AIB CC

I'm not confident either will give me a loan even if I arrange a direct debit. Has anyone been in this situation and how did you get out of it??

BTW - debt was amassed when my self employed husband was out of work and we had no income. My CC paid all the bills for over 6mths. I haven't used it in over 2 years.


----------



## vandriver (28 Apr 2013)

It won't be paid off till 2053 if you only pay the minimum,but this is a decreasing amount every month.If you pay a level €250 you will pay it off in about 4 years.


----------



## T&R (28 Apr 2013)

Cancel the card in writing ask the bank to freeze the amount and then agree a monthly sum you can afford. If they do not agree to this engage with a PIP once they are up and running.


----------



## Gerard123 (28 Apr 2013)

Forget that holiday in France you posted on elsewhere and use the money to repay your credit card bill!


----------



## Jim2007 (28 Apr 2013)

Gerard123 said:


> Forget that holiday in France you posted on elsewhere and use the money to repay your credit card bill!



You missed the 14K bonus last September, which the OP was advised to use to pay of the debt due to the high interest charges...


----------



## Crea (28 Apr 2013)

The bonus didn't come hence no holiday or pay off. 
So glad you check up on everyone and judge them before you post.

Thanks to those who were helpful. I'll contact the CC company.


----------



## Lsquared (29 Apr 2013)

I have read about a concept called snowflaking which is essentially making extra small payments when extra money is found against credit card debt so that you are chipping away at the balance and it decreases faster than just making the budgeted monthly payment. "extra" money could be money not spent on a take away, or money not spent on a discretionary item - any small payments of money that would not normally be missed. 

I have been trying to make extra payments against a credit card debt which built up this past year and I use photocopies of the payment stub with account number for this purpose. 

The feeling of being in charge is necessary when you are facing credit card debt because of the compounding interest. You are right to no longer be using the card.

good luck


----------



## mark1 (29 Apr 2013)

+1 I have been doing this for the past almost 5yrs on a weekly basis on a credit card debt of an initial 8k, it's now down to 450 and only achieved because of setting it up and paying it using mybills.ie.i know if I had depended on paying it monthly when the bill arrived I would not bein the same position I am in now, try the service they provide and I'm sure you will be in a better position too


----------



## Gerard123 (29 Apr 2013)

There was no attempt to judge here. The fact is that you were inquiring re a holiday when you knew you had a large CC bill outstanding, so what else could one reasonably infer? Apols if your sensitivities were offended, it was not intended; I appreciate someone in your situation has a lot on their plate! 

Re your CC - given what you are saying the critical thing is to get yourself off a high interest charging CC account ASAP. Talk to the bank about getting a term loan at a rate which will be much lower than the CC debt. Insist on it and play hardball if you have to, ie state you will 'refuse' to pay any more CC payments unless they help you, they need to act reasonably so they should facilitate you. 

Also cut up the credit card and never use it again. The amount of people who are in this situation, who get a term loan and then use the credit card again is astounding. Switch to cash only. If necessary get a prepaid 'credit card' which means you still have the functionality of a CC, but can only use the card if you have already lodged cash to it. 

You also mentioned a 'family joint account with AIB'. What's that about? Is there money it in which can partly pay down the credit card as part of an agreement to sort out your CC? 

Also you are banking with two banks, it would be better to stay with one, build up a relationship and try to get on top of things such that they start to develop confidence in you. Take this as a suggestion of course, only you know why you use the two banks, maybe there is a good reason.

Sounds like you husband is back working from your earlier email so hopefully things improve. Good luck!


----------

