I can't cope, I'm struggling to pay 4 credit cards

TheForce86 · 13 February 2018 at 6:27PM

Hello there, I posted this in the Credit Cards forum but was kindly advised to pop over here instead for advice.

To cut a long story short, over the last year I have been feeling depressed and low within myself and I stupidly thought it would be a genius idea to not get one credit card but 4! I am now in a situation where I am struggling very hard to find the money to pay them off, combined total amount of £1,500 but due to the high interest each month, I'm pretty much only paying the interest off each month and getting nowhere close to settling them once and for all. I have been such a fool in racking this kind of debt up when I should have been less selfish and thought more considerately towards my wife and daughter who should always be my number one priority, alas during this horrible time in my life I lost sight of all that and did not think clearly at all.

I am reaching the point of no return and considering do I let them default and get passed over to a debt collection agency where maybe then it would be more amicable in terms of monthly repayments?

I would appreciate any advice. Thank you for taking the time in reading.

tealady · 13 February 2018 at 7:09PM

Hi
Firstly contact the card companies and explain you are struggling.
Secondly CUT THE CARDS UP (or at least the 3 with the highest interest)
If you put up your Statement of Affairs (soa) the lovely peeps on here will advise you to get your budget under control
Please tell your wife, it is something you need to tackle together.
Finally - breathe! It is only money and there will be a solution.
If you want inspiration read the opening post in Eleven years a slave, I found it very moving and a reminder how anyone could end up in debt

Working_Mum · 13 February 2018 at 7:16PM

welcome - I would quickly destroy each card and send letters to the credit card companies explaining you are struggling and could they support you until you get to grips. I am s elf employed and cannot go bankrupt and I wrote to each of the credit card companies and have been bowled over at how supportive they've been. I haven't missed a payment - my interest rate is slashed (and down to nil for 3 2 of the 3 cards) and I am in regular written dialogue with them as I cannot face speaking on the phone after a full day at work. I have balanced the ship from a blooming awful place.

Take a deep breatha dn do somehting positice i.e cut up your cards and write the letters and get them posted.

You have taken the first step and you should be proud.

((hugs))

WM

TheForce86 · 13 February 2018 at 8:00PM

Thank you for both of your replies, really means a lot. My wife knows all about the predicament and is supportive but really hopes that I don't go down this road ever again but need to get it sorted all the same. My wife has also suggested about speaking to the card companies, but I am unsure of how helpful they will be.

tealady · 13 February 2018 at 8:20PM

TheForce86 wrote: »

My wife has also suggested about speaking to the card companies, but I am unsure of how helpful they will be.

Just rember if you ask for nowt then that is exactly what you will get.
Or to put it another way , what will it cost you? A bit of pride and a few pennies for a phone call?
If your missus and little one mean anything to you then you will want what is best for them.
Just swallow your pride and say to yourself "he who never made a mistake never made anything"

Fireflyaway · 14 February 2018 at 6:52PM

You will get through this. I was in a similar situation with 2 credit cards and 7 payday loans! For me I decided to default on them all and enter into repayment plans. Yes it messed up my credit score but I could breath again so it was worth it.
Credit card companies are use to dealing with people like us. Just be firm. Don't let them make you ' agree' to anything you can't afford. Write down your income / expenditure before you call them and leave some wiggle room. If you have £50 left a month, tell them you have £10 or whatever because you can bet something will come up. You still need to live. Most repayment plans freeze interest. If you don't need to protect your score, I'd default on all of them. Think carefully though, it might not be best for you. You will get through this. Your debt isn't huge and you have a way to pay it back. Have you heard of Dave Ramsey? Look on YouTube for the debt free screams. Its so motivational to see what can be done.

TheForce86 · 14 February 2018 at 7:17PM

Fireflyaway wrote: »

You will get through this. I was in a similar situation with 2 credit cards and 7 payday loans! For me I decided to default on them all and enter into repayment plans. Yes it messed up my credit score but I could breath again so it was worth it.
Credit card companies are use to dealing with people like us. Just be firm. Don't let them make you ' agree' to anything you can't afford. Write down your income / expenditure before you call them and leave some wiggle room. If you have £50 left a month, tell them you have £10 or whatever because you can bet something will come up. You still need to live. Most repayment plans freeze interest. If you don't need to protect your score, I'd default on all of them. Think carefully though, it might not be best for you. You will get through this. Your debt isn't huge and you have a way to pay it back. Have you heard of Dave Ramsey? Look on YouTube for the debt free screams. Its so motivational to see what can be done.

Thank you so much for your post. I'm so glad I joined this forum, been a real eye-opener and reassuring, Martin Lewis mentions it farely frequently on his stints on This Morning and GMB. I am still in limbo as to what would be the best thing to do in the long run but I do wonder whether to let them default and enter into a repayment plan with the debt collection agencies when they start sending out letters?

enthusiasticsaver · 15 February 2018 at 12:34AM

Tackle this now whilst the debt is relatively small. Ignoring it will allow it to increase if the interest is high and very quickly that £1500 could be closer to £2500 or £3000 in 6 months or a years time.

First off contact all four credit card companies asking them to freeze the interest to give you time to deal with the debts. Do an soa (statement of affairs) to work out how much you can afford to pay and cut the cards up. If they will not help you then a DMP via stepchange is an option but to be honest if the debt is only £1500 then this should be easily sorted once you have got a budget and are living within your means. There is a link to an soa on the DFW sticky.

datlex · 15 February 2018 at 8:02PM

Another vote here for talking to the credit card companies before it gets out of hand. Remember they would rather get half than nothing, so will be prepared to work with you.

I can't cope, I'm struggling to pay 4 credit cards

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