I am in debt with my credit card

B

buzzibee

Guest
Ok, I dont know how I did it but my credit card (MBNA) is over €3,000 and I cant pay it back as the amount I do pay off only seems to go off the interest and it just keeps getting higher. Its a vicious circle and I always swore I would never get into debt but I kept my head in the sand for so long and now I have to take action.
Has anybody got any advice re: options? Does it make sense to change company and get lower interest, are there any financial institutions that will pay it off and I pay them back with a smaller amount over a longer period. What if I took out a loan? I already have a loan with the credit union and that is going ok.
Any advice would be great :confused:
 
IMO

It completely makes sense to go for another credit card which charges 0% interest on your balance for a few months and try and clear as much of your debt as you can.

Switch again later if you still have to.

Cut your credit cards into small pieces so you don't keep using them.
 
buzzibee.. sounds like you only pay the minimum each month... if you continue paying the min, then your debt will continue to increase

I think its best that you speak to CU about increasing the loan, pay off the credit card and then dispose of the credit card in a timely manner.
 
Banks are more than happy to give you a loan to clear it. Cut up the old card and get a new one with a small limit. Halifax are now doing a visa debit card also, which is very useful.
 
Buzzibee, the advice that d2x2, chlipps and James have given you is very good and worth taking on board. All I would add is that when you cut the card up, don't get another one for a few months at least.

When I was younger and more foolish than I am now, I allowed my credit card to get a little out of hand. It was easy to spend today and worry about it tomorrow. Whoever said that tomorrow never comes was an out and out liar! :(

Good luck with it.
 
Thanks for the advice guys but aaaagh my bank declined my loan, Im horrified, I was really depending on it.
I have a direct debit paying off minimum payment and then I throw between 100-200 off per month and that leaves me with no spare cash.
Ill look around for a another card and hope for the best
 
The only thing I'd add to the above advice is to get in touch with MBNA themselves to explain the situation, especially if you're in danger of defaulting on payments. The one thing the banks hate is not being told when you're in financial trouble. You might (just might) be able to persuade them to freeze
the account and stop any more interest accumulating. Might give you a chance to whittle the balance down a bit.
The banks are generally more open to negotiation on these matters than people realize. I once got into trouble with mortgage re-payments and the bank agreed not to charge any interest for six months.
Good luck with it.
 
buzzibee...if the bank dont give you a loan, i suggest you define within the money makeover forum how much you earn, how much you spend, etc... You need to get a spread sheet in place and record every penny you have and on daily basis every penny you spend..then challenge your daily spends to the limit to maximise your spare cash to allow you get on top of the credit card. If you buy lunch daily, stop and make your own..go to aldi instead of local convenience store, ensure you have all relevant tax credits, med 1 as applicable completed. Get rid of sky, minimise mobile bill etc.. This might sound mad but think you have to in order to get rid of the 3k loan
 
Thanks for the advice again. Im not in danger of paying nothing and have recently applied for 0% balance transfer credit cards.
Chlipps its not mad at all, You are right. Ive started to really budget only spending when necessary, I never buy lunch anyway, I drive less etc.. Summer childcare is what will eat me up for the next two months but ill manage.
Dewdrop - The bank has no idea of my debts!
 
Before giving a loan a bank usually asks for details of your liaabilities in order to assess your repayment capacity
 
aaaagh my bank declined my loan
Click to expand...


Dewdrop - The bank has no idea of my debts!
Click to expand...

Not meaning to sound smart , but your bank more than likely does know of your current debts and liabilities and is probably why you were recently refused a loan.
 
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