Help Coming But Need an Interim Solution
willyloman
Posts: 3 Newbie
in Loans
Hi there
Bad news is that I've racked up about £40k in credit card debt and now the promo offers are expriting I'm struggling.
The good news is that I should be getting about £30k-£35k from an endowment in January.
But until then I need to do something - the question is what? I tried getting Virgin 0% card to switch some of it to and was refused - and having checked eligibility caclulators, I don't think lenders are queuing up to lend me anything.
My current thoughts (in no order of priority) are either
1. Try and get a personal loan to consolidate the three biggest balances and see if my wife can get a 0% to move as much of the rest acrtoss to and then pay this off in January.
2. See if we can remortgage (which give us more monthly disposable) but carries a 3% early repayment fee up to July 2020 -whenthe interest rate also jumps.
Pretty fed-up of having no money each month and although I'm lucky to have the endowment to fall back on just need to make the right decision for the remainder of htis year.
Any advice very welcome!
Bad news is that I've racked up about £40k in credit card debt and now the promo offers are expriting I'm struggling.
The good news is that I should be getting about £30k-£35k from an endowment in January.
But until then I need to do something - the question is what? I tried getting Virgin 0% card to switch some of it to and was refused - and having checked eligibility caclulators, I don't think lenders are queuing up to lend me anything.
My current thoughts (in no order of priority) are either
1. Try and get a personal loan to consolidate the three biggest balances and see if my wife can get a 0% to move as much of the rest acrtoss to and then pay this off in January.
2. See if we can remortgage (which give us more monthly disposable) but carries a 3% early repayment fee up to July 2020 -whenthe interest rate also jumps.
Pretty fed-up of having no money each month and although I'm lucky to have the endowment to fall back on just need to make the right decision for the remainder of htis year.
Any advice very welcome!
0
Comments
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Welcome to the forum,willyloman wrote: »Hi there
Bad news is that I've racked up about £40k in credit card debt and now the promo offers are expriting I'm struggling.
How did this debt mount up? You need to address the reason for the debt to ensure it doesn't happen again.
The good news is that I should be getting about £30k-£35k from an endowment in January.
That's 10 months away - you need to look at a solution that fits with your income
But until then I need to do something - the question is what? I tried getting Virgin 0% card to switch some of it to and was refused - and having checked eligibility caclulators, I don't think lenders are queuing up to lend me anything.
My current thoughts (in no order of priority) are either
1. Try and get a personal loan to consolidate the three biggest balances and see if my wife can get a 0% to move as much of the rest acrtoss to and then pay this off in January.
Consolidation doesn't work, even with the best intentions.
2. See if we can remortgage (which give us more monthly disposable) but carries a 3% early repayment fee up to July 2020 -whenthe interest rate also jumps.
Never move unsecured debts to secured - why put your home at risk by adding to the mortgage unnecessarily.
Pretty fed-up of having no money each month and although I'm lucky to have the endowment to fall back on just need to make the right decision for the remainder of htis year.
Any advice very welcome!
You need to create a SOA - either post it here or over on the DFW board.
The SOA will give posters a better idea of the bigger picture to give tailored suggestions.
Don't expect a quick fix - the debt didn't arrive overnight and isn't going to disappear that quickly either.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
We are in a very similar position! Its frustrating isn't it? I only have myself to blame as a very emotional spender, but all is turning around from budgeting and watching every penny that goes out my account.
Have you done yourself a budget? there are some fantastic links amongst the DFW board: http://forums.moneysavingexpert.com/showthread.php?t=4895819
You'd be surprised with how much wiggle room you have just by checking all your outgoings.
Best of luck!My old materialistic lifestyle left me in debt worth £38,250.
Current debt balance £35,966 16/07/20180 -
It should not really be frustrating, you spent the money on things that you wanted to spend it on, so had the pleasure, utility or whatever, and now it is time to pay it back.We are in a very similar position! Its frustrating isn't it?
Frustrating is planning a picnic and then it raining, or deciding on a whim to go to a restaurant and finding that it is full. You would not get frustrated if you fpdeove to alincokn and found yourself in Lincoln, so what is frustrating about spending money and the time coming when it is to be paid back?
Edited to add, the above is not criticising, or judging; I am pointing out that using language like you did suggests that you feel,that the current situation was imposed on you, when that is not likely to be the case. It is far harder to find solutions when you think that the situation is not in your control.0 -
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