I spoke to my bank about a small overdraft and they did an assessment based on how I manage my account (whether I tend to bounce payments or go over drawn), what my income is (esa and dla count...HB doesn't, most banks have a list of their approved benefits online) and the information I gave about my outgoings. Then they gave me a £1000 overdraft and offered a £2000 low interest credit card (even though I hadn't asked for that). I just applied for one of my other credit cards online and the other I got sent the form for in the post and both of those are smaller limits and much higher interest. Credit cards are ok if you have emergency things to pay and certainly better than pay day loans but generally not good for day to day spending. Plus when manic it is easy to abuse/max them out :p
When you apply they'll run a credit check to see how well you've managed your finances in the past (so making sure any previous credit cards/loans/overdrafts have been managed well, paid on time etc). I don't remember having to mention my income when I applied but it was about 4 years ago when I applied so I might have done.
If you do get one though be careful (I'm not assuming your bad with money or anything don't worry) because as long as you keep within your credit limit, even if you're always just paying the minimum and nearly maxed out, there are some credit card companies that just keep upping your limit every month or so and it can really spiral out of control.
I've had one go that way and had to go onto a payment plan with it because things got ridiculous. I have a second one that is pretty much paid off but I've had to put it up and it's purely for my pets if they need emergency vet treatment and I'm between paydays.
Thanks guys! I think I might go into my bank and have a chat about it. It's just intended for emergency things like unexpected bills and managing bills between paydays.
Although as Emma pointed out, being manic could make things difficult! :P
I'm fine! Totally fine. I don't know why it's coming out all loud and squeaky, 'cause really, I'm fine!
If it is emergency stuff then you could always phone up and get an overdraft added when needed? They can do it over the phone and mine was available immediately. Might stop 'accidentally' spending it by putting a barrier in place? My Cmht are also pushing me to request a max limit with the bank so that once I've paid off some of my credit cards/overdraft the bank will only increase my limit again by a small amount (to cover emergencies) and any large amounts will have a cooling off period. Might that be an idea to stop impulsive spending/trips etc?
I stopped using credit cards years ago. They are the biggest ripoff going. With debit cards you have convenience of the credit cards without the debt and interest. People don't really really need most of what they buy on credit and are better off waiting until they have the cash. I find if I wait long enough, I lose interest in things I really want to buy and often end up glad I didn't. Having access to "emergency" funding seems nice but it often just enlarges the "emergency" and makes it more permanent. Its better to sell something or borrow from someone. Living as debt free as possible should be a top goal
Last edited by Isoverity : 28-04-2015 at 06:03 PM.
I'd rather not get a credit card but there are some bills (like council tax) that have to be paid or I'll get taken to court over it which I'd rather avoid!
I'm fine! Totally fine. I don't know why it's coming out all loud and squeaky, 'cause really, I'm fine!
Re council tax, they have also threatened to take me to court before. When I phoned them and gave a brief overview (just said I'd been unwell), they were great at setting up a payment plan and offered to spread the money I owed over the entire year. Some councils also do crisis loans as a separate thing. If you discuss it with your CC she should be able to advise. Also, if electric or anything are bills you are struggling with, a lot of companies will credit your account (you have to apply by 31 March each year sadly) with £135 ish pounds if you are receiving higher or middle rate care DLA. Might be something to set a calendar alarm to look into around September time?
I stopped using credit cards years ago. They are the biggest ripoff going. With debit cards you have convenience of the credit cards without the debt and interest. People don't really really need most of what they buy on credit and are better off waiting until they have the cash. I find if I wait long enough, I lose interest in things I really want to buy and often end up glad I didn't. Having access to "emergency" funding seems nice but it often just enlarges the "emergency" and makes it more permanent. Its better to sell something or borrow from someone. Living as debt free as possible should be a top goal
Credit cards are good for online purchases because they offer more protection than a debit card. Plus, if you pay your card off in full every month, there are no charges. Borrowing from friends/family can be a disaster, even if it is an emergency.
Quote:
Originally Posted by Epic
If you are struggling to pay your council tax bill, and they are threatening court, you need to sit down and look at your finances and figure out how much of the council tax you can afford to pay back each week.
Once you have done that, you need to write to the council, setting out how you propose to pay off the bill in instalments. Make sure that that letter is sent by registered mail (or hand deliver it and get a receipt).
It would still *possible* for them to take you to court, but as the court would simply do the same (look at your finances and figure out how much you can afford to pay the council per week, and order you do pay it in instalments), then the court would seriously frown on them wasting court resources, and might even order them to pay the cost of the hearing.
This. A million times this.
If your money worries are that bad a credit card (and/or an overdraft) could potentially make them even worse.
You should never use a credit card to pay debts! Because you're just shifting around who you owe money to. And then obviously debts on credit cards rack up interest so you end up owing more, and more, and more.
I really wouldn't advise getting a credit card if there's even a slightest chance you might miss a payment, or use it when manic etc.
Isn’t it funny how day by day nothing changes but when you look back, everything is different…
you once called your brain a hard drive, well say hello to the virus.
You should never use a credit card to pay debts! Because you're just shifting around who you owe money to. And then obviously debts on credit cards rack up interest so you end up owing more, and more, and more.
I really wouldn't advise getting a credit card if there's even a slightest chance you might miss a payment, or use it when manic etc.
I wouldn't say never. You might me able to consolidate the debt onto one card, with lower (or even no!) interest charges for a while. Granted, it's not always the best idea, but it is an option for some.
Credit cards are good for online purchases because they offer more protection than a debit card. Plus, if you pay your card off in full every month, there are no charges. Borrowing from friends/family can be a disaster, even if it is an emergency.
Yes - borrowing from family and friends can be bad. All borrowing is hazardous. I wouldn't argue a credit card can't provide some protections but I have never needed them. Only thing I think a credit card for is good for is medical/dental emergency - and believe it or not sometimes not being about to pay doctors is good because you end up not getting a treatment you don't really need lol. That road I've been down..
Re council tax, they have also threatened to take me to court before. When I phoned them and gave a brief overview (just said I'd been unwell), they were great at setting up a payment plan and offered to spread the money I owed over the entire year. Some councils also do crisis loans as a separate thing. If you discuss it with your CC she should be able to advise. Also, if electric or anything are bills you are struggling with, a lot of companies will credit your account (you have to apply by 31 March each year sadly) with £135 ish pounds if you are receiving higher or middle rate care DLA. Might be something to set a calendar alarm to look into around September time?
^I did that this year and it really helped, it's seen me through the winter. The utilities companies don't promote it much though. I just chanced upon it while browsing the British Gas website. It is well worth applying for.
A credit card would be bad for me. I would live my life like I was Elvis if I had one. for a few months anyway! Spend what you earn is how I live but as others have said contacting who you owe and sorting a payment plan is the best way for handling debt. I've always found them understanding when I have had to do it
Really I'd think it would be v risky for you to get a credit card because though you're wanting it for good intentions, who's to say if you are manic again that you don't below the whole lot as the temptation will be strong and it would be easier than getting a loan. You could spiral into more and more debt before you know it. Ring up the council/ utility providers/ other companies you may owe money to and discuss whether you can get a payment plan, as others have said. That will put you in good stead as they'll see that even though you're struggling at the moment, you've seen there's a problem and you're being responsible with how you want to go forward with it. They'll hopefully do something for you without ridiculous interest rates.
The other possible option would be to get a credit card, use it for this and then cut it up, never use it again and just pay it off but you'd need to make sure the payments were definitely in check.
I'd really be careful and really think this through. I've just come out of a really impulsive stage in which I applied for loads of credit cards (I have 6 now), I've racked them all up to their limit with nearly £5000 debt on them, which I can barely afford to pay back.
I've had to ring up all the credit card companies begging for me to make minimum payments until I can pay them off better. And while they have been understanding to my situation I have been warned by them all that if I can't make the payments I will incur charges and face a lot more issues.
Now I can barely afford to run my car or do anything with my friends that costs money. I am honestly looking at the prospect that I may have to quit my degree if I can not get this all under control during the summer holidays.
And this all stems from a few months of going off the rails. Biggest mistake of my life.
That said if you can get one with a small limit on it, it may well be helpful. But you do really need to be careful.
To answer the original question it is scarily easier to get a credit card. I got one through my bank when I was unemployed on had no source of income. I use mine essentially as a debit card but for online purchases and have it linked with my current account so it automatically gets fully paid off each month. Even though I have never put more than £150 on my card they still increase my limit every 12 months. Credit cards have their uses but you do have to be savvy and on the ball with them at the end of the day they are set up to make money for the banks and I worry whether you will always be able to do this.
