Credit Card Debt Situation

Good to hear that you're coming out of the problem now Steve.

Well at 2000 a month a 5500 credit card debt shouldn't take you too long to remedy. You have the right idea about doing a balance transfer to a 0% card. make sure you do this sooner rather than later as many if not all card companies are about to put a 2% charge on for balance transfers. The age of the 0% balance transfer is coming to an end.

If you move to a card like the Virgin credit card you will get 9 months interest free which should be long enough for you to pay it off entirely. Check out

If you pay off in chunks over the next 6-9 months you should be able to clear it all relativly quickly leaving you free to move on.

All the best.

Try to get a 0% balance transfer card.

Rob Graham

"Sam Smith" wrote

You can still make money on a "0%" balance transfer, even if you need to pay a 2% fee -- for instance, if it lasts for 6 months then you just need to get over 4%pa (net) interest in your 'savings' account. This is often achieved if you have an "offset"-type mortgage.

Thanks Sam for the kind regards!

I meant i earn 2k net - ie after tax not expenditure! I reckon i prolly clear 300/400 quid after expenditure a month. Not lately tho - bloody car repairs!!

But like I said I'm looking to sell a load of my stuff, in case I do move overseas. It's mostly Sun Microsystems stuff I used for my job - lot of it! Might get a couple of grand for it. And a couple of Rickenbacker guitars! Place having a tidy place and more space even if I don't move abroad...

Hope that clears things up a bit!

Steve

I was just saying that it is best to move sooner rather than later. :)

Sorry for the misunderstanding! ;)

Even at 3/400 quid a month you are still moving in the right direction and unless you have a really high APR card that should leave you paying off about 3 times more than the minimum. At 350 a month that will take you about 16 months so it is still an achievable near-term target.

Best of luck with everything it sounds like you have quite a lot of stuff that will do rather well on ebay! :)

"Steve" wrote

Definitely get on the electoral roll - it helps eastablish you as of fixed abode and improves your credit score no end. Depending on how long ago your debt problems were you might still have problems getting a 0% deal, in which case your next best bet is to get a storecard and use it sparingly, paying off the balance every month. The advantage of this is that they are easier to get, and used properly, will help create a respectable recent credit history for you. After 6 months or so, try for another 0% deal -- too many applications can, reportedly, damage your credit history in themselves.

Don't know who you're with but Egg and MBNA do generous credit limits.

"John Redman" wrote

Nah - Egg has a maximum of only 15K for their credit limits - hardly "generous" compared to others!! [Eg MBNA maximum is 50K...]

Really, I've never heard it going over 25k. Interesting.

Steve, this website might be of use, a list of 0% cards that have no fees

"Jo Reed" wrote

Even more interesting: I know a bank that quotes (on their website) "Maximum credit limit 25,000" but actually gives out credit limits *over*

"Jo Reed" wrote

In message , Tim writes

I think its because with regard to unsecured borrowing the limit for regulated agreements under the Consumer Credit Act is £25k. If the advert offered unsecured borrowings in both below and in excess of £25k then it is possible that different rules would apply making each bit of the advert requiring different wordings and making the advert overly complicated. Therefore unsecured borrowing is generally advertised as £25k max even though larger credit limits are available without the protection of the CCA.

In message , Jo Reed writes

The Consumer Credit Act rules for Regulated Agreements apply to unsecured lending up to £25k.

Other regulations within the CCA regulate the provision and advertising of secured loans of any amount where the security is a legal charge over the domestic home without the loan itself becoming a regulated agreement.

If a secured loan is less than £25k then some secured lenders introduce extra procedures for their loans whilst others will not lend below that amount.

"john boyle" wrote

MBNA quote maximum credit limit of 50K on their website. The adverts don't look overly complicated!

"john boyle" wrote

If the agreement is headed "regulated by CCA", even if the credit limit is over 25K, then is it protected?

If you take out a credit card with a limit of under 25K, protected by CCA - and the limit is subsequently raised to over 25K - are you still protected?

If you agree to take a card with a limit of under 25K, but the issuer actually issues you with a card with a limit of over 25K from the start - are you still protected?

In message , Tim writes

No, its quite simple really. The compliance department of some lenders really like to make a meal of things!

No.

In both cases I would say not, but thats only an opinion.

"john boyle" wrote

Really? You could agree with the lender for a credit limit *below* 25K,

Sounds fishy to me!

In message , Tim writes

Well we all know what the law is!

In message , Tim writes

On re-reading this I would add to my earlier reply...

I dont know of a situation in which an unsecured credit facility in excess of £25k WOULD be headed as being a "Regulated Agreement". I note you didnt use these words but I assume that is what you meant.

Having said that I do know of such a facility in which the credit provider claimed a debt was regulated by the CCA when the credit granted exceeded the then limit. The debtor defaulted and the creditor sued and lost because despite claims on the form that the credit was a "regulated Agreement" in fact it was not and therefore the whole agreement was void and the debtor was not liable for the debt. Unlike the situation which you describe the circumstances in the case I describe was merely due to a c*ck up by the credit broker involved.