Advice Needed Please

A question about : Advice Needed Please

Hi,

I'm just after a bit of advice to see if there is anything I can do to lower my credit card payments, as I am really struggling with the payments and the interest is so high on the card I end up pretty much staying where I am and paying hardly anything off, I feel like I'll have this credit card forever!

My card is with Barclaycard, I've had it for 10 years since I was 18.

I've currently got around Ј6,000 debt with them (which I know to some may not seem a lot, but I only earn Ј9,000 per year), they charge me Ј100.00 interest every month. My credit rating is also poor (1/5 according to Noddle). I'm paying Ј150.00 per month off my card and really starting to struggle, I can't afford to pay any more than this and I feel like this credit card isn't going anywhere soon. I have cut it up and removed it from all websites I would purchase items with it so I have no excuse now.

Is there anything I can do or do I just have to suck it up and pay this amount and wait for the year it'll take me to pay off?

Any advice is appreciated

Thank you,
Ruth.

Best answers:

• Hi Ruth,
  We have been through alot of struggles with credit card debt, and I personally think that the best starting point with a credit card is to ring them up.
  Call them, explain that you are really struggling to make your payments. They will go through an Income & Expenditure form with you and if it is anything like my experience, they will freeze your interest & charges and agree a set amount per month that you both agree you can afford to pay.
  This agreement is usually in place for about 6 months and then you will probably have to go through it all again.
  I have found 90% of them to be really helpful and understanding.
  I haven't found letter writing any use at all, they just seem to ignore it or try to call you anyway.
  It would also help you to do a strict budget every month to help you keep your finances under control to ensure you can afford to pay the credit card some extra money to get rid of it quicker.
  YNAB (You Need A Budget) is amazing
  Good luck, get mad, you can get rid of this debt if you get started now xxxx
• Hi Ruth,
  I agree with Stressedsteph. Call them up and explain your circumstances. I have 2 Barclaycards (I had one and an egg card and barclays took over egg) and when I started my debt plan I was in the same boat as you. My interest and minimum payments were so high I was broke and my payments weren't making a difference due to interest going back on. They were fine with me. They cut my interest to something like 2.5% and let me pay a lower amount each month. They contacted me a year later to review my circumstances and I just said I wasn't any better off and they extended the payment plan for another year. I'm not too far off paying it all off now and have had no hassle with them.
  Don't panic, just ring and talk to them. Hopefully they will work something out for you too. Good luck xx
• Thank you so much, your replies instantly made me feel better, sometimes you feel like you are the only one in the boat despite so many other people having the same struggles!
  I will give Barclaycard a call first thing tomorrow, I had no idea ringing them and explaining might actually do something.
  Fingers crossed they will understand my circumstances :-) thanks again xxx
• My situation was a little different, I was missing payments, catching up, by paying double the next month, making late and partial payments. Barclays phoned me and I told them that I was struggling as I was between jobs which was the truth. They agreed to lower my APR from 24.9% to 14.9% which was a great help, this reduced the amount the debt increased and any over payment I could make big or small made a difference.
  I did think that 14.9% was good, but I have read about other people on this board getting their APR's down even further.
  My point is if you a meeting and exceeding the minimum payment, they may not be in any real rush to help you by lowering the APR. If they can see erratic payments they may be more inclined to help, they would rather get some interest, then none at all if they think you are going to default.
  Obviously any erratic payments will affect your credit file, I was ok as mine was already trashed at that point so it didn't matter. If you have long-term goals e.g. car loan or mortgage then don't risk it. Up your income, sell things and pay down the card.
• What's the APR?
• Hi Ruth
  I agree with Moneymash that maybe if you have been making the payments on time they may not reduce your interest down too much. If you already have a mortgage and your credit score is already trashed, it may be worth missing or pay late for a couple of months and that may make them realise how you are struggling.
  I do know that my L1ittlewoods catalogue and Barclays have put a default against my credit file because of my bad payment record, but frankly, I never want credit EVER again so I am not overly bothered.
  IF you haven't yet bought a home and plan to in the next 6 years, I may be worth, trying a different method, of trying to switch to a lower interest card, or just plain old selling everything but your dog to get money together quickly and also cutting down your home expenses as low as possible to have more available money to pay this card off quicker.
  Its a choice you need to make xx