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Credit card advice please.

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Oh yes I thought for example the credit card company would say 'the minimum payment each month is £50...' and I can meet that or pay more, which I will!

 

Before you jump into this, do you need the item now? Or could you save up for a couple of months or so, and buy it then? Or are you like me, and crap at saving? :hihi:

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As to how the CC companies make money, they get a small percentage from the retailer for each transaction you make. That's how they can afford to give cashback, points etc. Even if you never pay interest or a late fee they'll still cover their costs.

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Not always, earlier this year I just totally forgot to pay my credit card before the due date. Phoned credit card company up and made a debit card payment over the phone. I asked if the missed payment would be a mark on my credit score / record. I was told I would be charged a late payment fee of £12 but as the payment would be credited to my account only a couple of days late, it wouldn't effect my credit score / record in anyway.

You're fortunate; at least one client of mine was declined a mortgage advance because of one missed debt repayment.

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Before you jump into this, do you need the item now? Or could you save up for a couple of months or so, and buy it then? Or are you like me, and crap at saving? :hihi:

 

Ha yes I'd like it now more than need it now, saving would be a lot simpler though! :)

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Just found a bill, my limit was actullay £650, and the cards been defunct since about March. I think I got it last April and used it to buy a new pram and other baby stuff, maxing it out. I've paid £16 a month since, and according to latest bill, I still owe £560 on it, this months bill of £16 includes £10 in interest, so the balance is clearing VERY slowly. I'll maybe start making bigger payments on it actually!

 

With the interest you are been charged I would try to pay as much as you can afford each month and try to get the balance down ASAP.

 

£16 this month but with £10 been interest you are only paying £6 off the balance, if you keep on just paying the minimum each month, it will take you years to pay the card off and you will pay 100's if not a few 1000's in interest.

 

Depending on what your current credit rating is, try looking into getting a card card with a interest free period on balance transfers.

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Depending on what your current credit rating is, try looking into getting a card card with a interest free period on balance transfers.

 

Not sure I want another card :hihi:

 

It was just a case of right, I need this now, I'll try and apply - Got refused for any card I tried. Whilst logged into PayPal, I saw their card advertised and thought I'd give it a go, and I got it, straight away, and before even getting the card I could use it to pay for things online via Paypal. Great stuff! :hihi: Just got to pay the bugger off now. Never bothered with it though, used it for about 3 transactions online, never even used the physical card.

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Not sure I want another card :hihi:

 

It was just a case of right, I need this now, I'll try and apply - Got refused for any card I tried. Whilst logged into PayPal, I saw their card advertised and thought I'd give it a go, and I got it, straight away, and before even getting the card I could use it to pay for things online via Paypal. Great stuff! :hihi: Just got to pay the bugger off now. Never bothered with it though, used it for about 3 transactions online, never even used the physical card.

 

Doing a quick on the back of a fag packet calculation, if you pay just 3% each month on your current balance of £560 which is currently about £17 a month on a balance of £560 and with a APR of 29% it would take you over 20 years to pay the balance off and you will pay over £1500 in interest.

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3% a month? Coo. Bad news. Get it repaid asap, maybe by a balance transfer from a less-extortionate card.

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Doing a quick on the back of a fag packet calculation, if you pay just 3% each month on your current balance of £560 which is currently about £17 a month on a balance of £560 and with a APR of 29% it would take you over 20 years to pay the balance off and you will pay over £1500 in interest.

 

I know!

 

Shall certainly be getting onto them to up the DD! Would be easier if I could still manage it online and pay a bit extra :rant:

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Leah, do you have online banking on your bank account?

 

If you do phone the credit card people and ask them for their bank details, then make a bill payment from your bank account whenever you can spare a few pounds. It'll all help.

 

I'd be surprised if they can't sort your online access out for you though.

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I know!

 

Shall certainly be getting onto them to up the DD! Would be easier if I could still manage it online and pay a bit extra :rant:

 

Thats a wise thing to do if you can afford it. If you can afford to double your monthly payments and pay £35 a month every month, the balance would be cleared in less than 2 years and you would pay only about £150 in interest. Pushing the monthly payment to £50 a month, balance would be cleared in just over 12 months paying only £100 in interest.

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If you cant even afford something for £700 dont ever get a credit card, as you would get into like so many dumb people have.

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