Question

Hi Jon,

I took out a credit card a year ago and it had a credit limit of £500, of which I quickly used. The interest rate is almost 40%, and I cannot get the balance to come down. I can only afford the monthly payment so I am unsure what to do. Can you help?

Answer

Hi,

Have you spoke to the credit card company about your situation?

They may be able to freeze the account for a period of time, allowing you to pay more towards the balance to pay the account down or off.

Keep in mind, if they allow you to do this, it may affect your credit and credit score as you will be making payments that are out the original terms and conditions for the account.

Another option is to do a balance transfer to another credit card, or get a loan with better terms and a lower interest rate to pay off the card you now have. This will depend on your credit score and if you qualify for a lower rate loan.

Regards,

Jon

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