Credit Card Debt Question...

18
Found 21st Oct 2017
So I made a big mistake recently by making a late payment to Virgin as my baby boy was born early this month, wife went through hell so I had to stay put with her in the hospital for a few days...

Anyway I missed my payment and now Virgin have hit me up with there 20%+ Interest and are not willing to do anything about it...

The card has £7500 outstanding and I've already got another card from Lloyds which I balance transferred £2500 to the Virgin Card...

What is the best solution for me as I know I'll get rejected if I try fill out another CC trying to get that 7.5k and I don't want that rejection to go on my record... I am a property owner if that helps? Remortgaging my house is out of question right now as I recently joined a new job. (dont have 3 month payslips)
Community Updates
  1. Ask
Groups
  1. Ask
18 Comments
I know it's locking the stable door after the horse has bolted, but always have a minimum payment direct debit. That way you can over pay if you have the funds, but you won't miss a payment if you have other things on your mind.
Well you could use the Moneysavingexpert credit card checker to see what your chances to get a new one are...
Otherwise just wait a few months then see if you can get a balance transfer card.
it sounds like you are starting to get into debt as you have £10k of debt on your credit card so it is getting out of hand and you need to start doing something about it. you need to reduce your spending, which is going to be difficult as you have just had a baby.

you may need to get another job. remortgaging won't need 3 months of payslips as the mortgage provider will look at your financial status as a whole. having a new job may give them worry as you will be in a probation period.

you could look at taking out a loan and pay off the credit card debt. the personal loan will have lower interest rates than credit card interest.
I take it your Virgin CC was a 0% interest offer. I'm afraid all CC companies expect that you will build up a healthy debt during the 0% period and then move on to their normal rate . I'm afraid the CC companies aren't in the business of giving away free money the 0% offers are a "teaser" to get you paying their normal 20% + rate sooner or later.(if you breach the T&Cs sooner they are more than happy ).

Anyone thinking of taking one of these "teaser" offers should be very aware of this , monitor very closely and have a fireproof plan to pay off the debt before it reverts to their standard rate. Of course the CC companies want you on their normal rate so its very unlikely they will help .

I think you will probably have to swallow the high interest for a few months (overpaying as much as possible ) until you can make other arrangements for paying it off .As you appear to realise jumping from one 0% CC to another is not always possible as many people seem to assume .
Edited by: "rogparki" 21st Oct 2017
Original Poster
psychobitchfromhell23 m ago

I know it's locking the stable door after the horse has bolted, but always …I know it's locking the stable door after the horse has bolted, but always have a minimum payment direct debit. That way you can over pay if you have the funds, but you won't miss a payment if you have other things on your mind.


yeh I had it on direct debit but because I made the 2.5k payment on one particular month from the other CC I cancelled my direct debit because I didn't want money coming from my bank that month (already overpaid)

I agree... Stick to the direct debit and don't cancel -_-

Thanks everyone for your input.
This is how the company finance balance transfer offers they bank on so many people missing payments and they can get you onto their payable rates.

You need to balance transfer that or get a bank loan to pay it off. Best bet is a loan with your current mortgage company. Or get your wife to get the credit card if she can
Edited by: "Dannyrobbo" 21st Oct 2017
I'm very old fashioned. I'm 44 and never had a credit card. Sometimes through out my life I may have felt I was missing out by no going on the best holidays when all your friends seem to be going. My point being is sometimes you have to cut your cloth accordingly. It's not always fun it may mean you need to sell things and go with out the so called latest must haves.
I know this is a generalisation and if not applicable to you I'm sorry, but moving forward unless you structure your payments without keep borrowing more your situation will never really go away.
The important thing is your wife's knows about all the borrowing too so you can work through it together, as otherwise she may have unrealistic expectations of how much spare money you have. All the best and hope you get through it.
Original Poster
hubcms37 m ago

I'm very old fashioned. I'm 44 and never had a credit card. Sometimes …I'm very old fashioned. I'm 44 and never had a credit card. Sometimes through out my life I may have felt I was missing out by no going on the best holidays when all your friends seem to be going. My point being is sometimes you have to cut your cloth accordingly. It's not always fun it may mean you need to sell things and go with out the so called latest must haves. I know this is a generalisation and if not applicable to you I'm sorry, but moving forward unless you structure your payments without keep borrowing more your situation will never really go away. The important thing is your wife's knows about all the borrowing too so you can work through it together, as otherwise she may have unrealistic expectations of how much spare money you have. All the best and hope you get through it.

Salute to you... my father is 66 and also has never taken any loans or credit cards - my wife certainly knows the situation thanks for your input.
Original Poster
Dannyrobbo1 h, 17 m ago

This is how the company finance balance transfer offers they bank on so …This is how the company finance balance transfer offers they bank on so many people missing payments and they can get you onto their payable rates. You need to balance transfer that or get a bank loan to pay it off. Best bet is a loan with your current mortgage company. Or get your wife to get the credit card if she can

Exactly. I was thinking this when I signed up to the 0% - my initial thought was “I’ll never miss a payment” because I’ve been good with my mortgage but I messed up.
hubcms51 m ago

I'm very old fashioned. I'm 44 and never had a credit card. Sometimes …I'm very old fashioned. I'm 44 and never had a credit card. Sometimes through out my life I may have felt I was missing out by no going on the best holidays when all your friends seem to be going. My point being is sometimes you have to cut your cloth accordingly. It's not always fun it may mean you need to sell things and go with out the so called latest must haves. I know this is a generalisation and if not applicable to you I'm sorry, but moving forward unless you structure your payments without keep borrowing more your situation will never really go away. The important thing is your wife's knows about all the borrowing too so you can work through it together, as otherwise she may have unrealistic expectations of how much spare money you have. All the best and hope you get through it.


Using credit cards isn't something that people who have no money do. I use them, always have, but pay them off every month.

Being blind to credit isn't necessarily wise. You get nothing for doing what you do.

I use credit cards and (paying them off because I am savvy with my money) I fly First Class with BA (thanks to my Amex cards), I stay in hotels for free/reduced rate (due to the credit cards I use). I have cash back cards, rewards cards and points cards. But that doesn't mean I am in debt. It also doesn't mean I am not old fashioned (or new fashioned, if indeed that is a word). What it means is, I do cut my cloth, but the difference is, I can spin the cloth in another direction and make free money/rewards/things out of the cloth.

Patronising people does no one any good, education is key.
Original Poster
windym2 m ago

Using credit cards isn't something that people who have no money do. I use …Using credit cards isn't something that people who have no money do. I use them, always have, but pay them off every month. Being blind to credit isn't necessarily wise. You get nothing for doing what you do.I use credit cards and (paying them off because I am savvy with my money) I fly First Class with BA (thanks to my Amex cards), I stay in hotels for free/reduced rate (due to the credit cards I use). I have cash back cards, rewards cards and points cards. But that doesn't mean I am in debt. It also doesn't mean I am not old fashioned (or new fashioned, if indeed that is a word). What it means is, I do cut my cloth, but the difference is, I can spin the cloth in another direction and make free money/rewards/things out of the cloth.Patronising people does no one any good, education is key.


Wow.. What a nicely written response. My brother has the american express takes advantage of the free louge at airports
Whatever you do dude, don't take on any more debt.£10k is a lot to have unsecured hanging over your head,especially with another mouth to feed. Given the circumstances, I would look into the possibility of a consolidation loan so you can get rid of the debt all together. I worked with credit cards for many years and I've seen the mess people can get themselves into. They don't repay, they just keep spending. I use a credit card but only for the extra protection it offers and I have a full repayment direct debit. Good luck, the main thing is to deal with the situation now and don't let it get out of hand.
windym1 h, 6 m ago

Using credit cards isn't something that people who have no money do. I use …Using credit cards isn't something that people who have no money do. I use them, always have, but pay them off every month. Being blind to credit isn't necessarily wise. You get nothing for doing what you do.I use credit cards and (paying them off because I am savvy with my money) I fly First Class with BA (thanks to my Amex cards), I stay in hotels for free/reduced rate (due to the credit cards I use). I have cash back cards, rewards cards and points cards. But that doesn't mean I am in debt. It also doesn't mean I am not old fashioned (or new fashioned, if indeed that is a word). What it means is, I do cut my cloth, but the difference is, I can spin the cloth in another direction and make free money/rewards/things out of the cloth.Patronising people does no one any good, education is key.


I didn't want to come accros as patronising, it's just my wife got into money trouble once (part of it involved credit cards).
In life I've learnt banks aren't in the habbit of giveing you free money. Well Barclays didn't when i worked for them!
I guess the irony is while you use yours extremely wisely the poor OP is funding you.
hubcms9 m ago

I didn't want to come accros as patronising, it's just my wife got into …I didn't want to come accros as patronising, it's just my wife got into money trouble once (part of it involved credit cards). In life I've learnt banks aren't in the habbit of giveing you free money. Well Barclays didn't when i worked for them!I guess the irony is while you use yours extremely wisely the poor OP is funding you.


I have used credit cards as soon as i was old enough to have one and i have used them wisely as they have been cashback or 0% balance transfers. I have had so much free money from them, it is rediculous. However i agree that credit cards are not great for those who can not control their spending as it encourage people to spend and you often lose track of how much you have spent.

i often had credit several times the amount of money i could afford to repay so it is very easy to buy more than you can afford on credit, which is the whole business model for the credit card companies.

if you have a problem controlling your spending, then stay away from credit cards, even those give cashback or 0% balance transfers.
Banned
Option 1 Pay up the 20%

Option 2 Get a loan & on £10k you should be able to get less than 10%

Option 3 Get another interest free credit card

Option 4 Secured loan/mortgage

Option 5 A combi of above

Personally I would attempt another balance transfer card as a given & then rip up all my cards & start living a tough life for 12 months to pay that Virgin bill right off.
hubcms1 h, 23 m ago

I didn't want to come accros as patronising, it's just my wife got into …I didn't want to come accros as patronising, it's just my wife got into money trouble once (part of it involved credit cards). In life I've learnt banks aren't in the habbit of giveing you free money. Well Barclays didn't when i worked for them!I guess the irony is while you use yours extremely wisely the poor OP is funding you.


Credit cards are great for people with the time to get good deals and the will power not to overuse them. I like to spend so I have always avoided them
Original Poster
Kmore3 h, 4 m ago

Option 1 Pay up the 20%Option 2 Get a loan & on £10k you should be able to …Option 1 Pay up the 20%Option 2 Get a loan & on £10k you should be able to get less than 10%Option 3 Get another interest free credit cardOption 4 Secured loan/mortgage Option 5 A combi of abovePersonally I would attempt another balance transfer card as a given & then rip up all my cards & start living a tough life for 12 months to pay that Virgin bill right off.


These steps are awesome dude, appreciate the write up. Thank you.
If you are stuck, then get a 3% bank loan over 7 years. Get low payments and lower interest than credit cards.

Use the money to clear the card.

Use the card and clear balances every month.

After 6 months apply for a money transfer card and repay bank loan or keep bank loan and pay off early to avoid interest.

Always check direct debit and expect 1st month not to work and pay it your yourself with a standing order and early to allow 5 working days to clear.
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Merchants