Credit card & overdraft debt
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pappapump
Posts: 12 Forumite
Hello all. I have been in debt for several years now and not dealt with it, instead opting to bury my head in the sand but this needs to be dealt with so here I am asking for your help.
My credit card debt is at 9k. My overdraft debt is at 2.5k. My current pay still keeps me in overdraft and I am desperate to clear this.
I am in a steady and secure job so making repayments isn't such a problem. One of the pain staking issues is that at the end of every month I get charged a whopping £70 commission for my overdraft & £170 interest on credit card. I also and I'd rather that go to paying off my debt instead of it going to commission. I've been researching IVA's, DPP's, DMP's, bankruptcy but they all scare me to death. I've also been looking into credit card balance transfers but feel very sceptical that I won't qualify for the amount required and to be honest, some of the jargon confuses me. All help will be greatly appreciated. Thx.
My credit card debt is at 9k. My overdraft debt is at 2.5k. My current pay still keeps me in overdraft and I am desperate to clear this.
I am in a steady and secure job so making repayments isn't such a problem. One of the pain staking issues is that at the end of every month I get charged a whopping £70 commission for my overdraft & £170 interest on credit card. I also and I'd rather that go to paying off my debt instead of it going to commission. I've been researching IVA's, DPP's, DMP's, bankruptcy but they all scare me to death. I've also been looking into credit card balance transfers but feel very sceptical that I won't qualify for the amount required and to be honest, some of the jargon confuses me. All help will be greatly appreciated. Thx.
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Comments
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What part of the jargon confuses you? read the balance transfer guide here: https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards
If you need help with specific bits, post up.
Also, all of the above are for when you can't manage your debts and all have their good and bad bits.
read the debt help guide in my signature, and if you want some advice on how to tackle your debts based on your I&E, post an SOA from here: http://www.stoozing.com/calculator/soa.php
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
Hello all. I have been in debt for several years now and not dealt with it, instead opting to bury my head in the sand but this needs to be dealt with so here I am asking for your help.
My credit card debt is at 9k. My overdraft debt is at 2.5k. My current pay still keeps me in overdraft and I am desperate to clear this.
I am in a steady and secure job so making repayments isn't such a problem. One of the pain staking issues is that at the end of every month I get charged a whopping £70 commission for my overdraft & £170 interest on credit card. I also and I'd rather that go to paying off my debt instead of it going to commission. I've been researching IVA's, DPP's, DMP's, bankruptcy but they all scare me to death. I've also been looking into credit card balance transfers but feel very sceptical that I won't qualify for the amount required and to be honest, some of the jargon confuses me. All help will be greatly appreciated. Thx.
Hi,
When you say "commission" i assume you mean interest. Unfortunately, the cost of borrowing nowadays can be high.
If you are able to make the contracted payments without any undue financial problems, then its not a debt solution you seek, most likely you just need to budget better.
But, as suggested, an SOA will tell us more.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it 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.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 320
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 16
Car Insurance........................... 42
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 431
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 44
Holiday................................. 0
Emergency fund.......................... 50
Gym..................................... 15
Bank charges............................ 22
Vehicle payment plan.................... 99
Union fees.............................. 28
Pet food................................ 20
Total monthly expenses.................. 1392
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................9100......205.......22
Overdraft......................2500......0.........0
Total unsecured debts..........11600.....205.......-
Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,392
Available for debt repayments........... 358
Monthly UNsecured debt repayments....... 205
Amount left after debt repayments....... 153
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,600
Net Assets.............................. -10,600
[/tt]0 -
On my mobile banking the overdraft charges is printed as 'commission'. Which leaves me somewhat confused as you believe it is interest. Unless this their wording for interest. I am in the process of budgeting now. It just seems as if these payments that I am making are going nowhere and do not see the light at the end of the month which is why I thought, for the first time in my life I'd address a forum full of experts in this field.
Thanks.0 -
On my mobile banking the overdraft charges is printed as 'commission'. Which leaves me somewhat confused as you believe it is interest. Unless this their wording for interest. I am in the process of budgeting now. It just seems as if these payments that I am making are going nowhere and do not see the light at the end of the month which is why I thought, for the first time in my life I'd address a forum full of experts in this field.
Thanks.
Just seems a strange way to describe it that's all, i would not say we are a forum full of experts, but lots have been there, done it, got the t-shirt, if you know what i mean.
Right, seems to be a fair few things missing from the SOA :
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
all of these should have something in them.........I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it 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.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The reasons they are all at zero is because these are all included in my rent. I cut my own hair, life assurance I have with work so that already gets deducted from my wages and anything would be very minimal.
Hope this helps.0 -
[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0 2 Adults, One income? Or Not counted because it is separate and you rent a room etc?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 320
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 - Too high if that's just for yourself. Look at the Budgeting and food boards for tips.
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 16
Car Insurance........................... 42
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 431 - Going to guess this is child maintenance, because that is frankly killing you but may be out of your control.
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 44
Holiday................................. 0
Emergency fund.......................... 50 - Where does this go? You have no cash.
Gym..................................... 15
Bank charges............................ 22
Vehicle payment plan.................... 99 - For a car worth £1,000? How long is this due to go on for?
Union fees.............................. 28
Pet food................................ 20
Total monthly expenses.................. 1392
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................9100......205.......22
Overdraft......................2500......0.........0
Total unsecured debts..........11600.....205.......-
Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,392
Available for debt repayments........... 358
Monthly UNsecured debt repayments....... 205
Amount left after debt repayments....... 153
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,600
Net Assets.............................. -10,600
[/tt]
This shows you have £150 a month (£200, as the emergency fund money isn't going into any emergency fund I can see) that can be put to sort this out, more than enough to service a 0% Money transfer Card, or Loan to sort this out. Use the link I provided earlier find you eligibility for cards etc and get out of the OD. Once you do that, snowball the CC with any spare cash you have. You certainly should not be looking into any form of insolvency based on your debt to income ratio.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
is the £431 child expenses maintenance? That seems a very large proportion of your salaryI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards 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.0 -
Yes, the £431 is going toward child maintenance. The thing is, until very recently I was paying through the CSA £379 up until a month ago. This has now been taken over by the CMS and though I have taken a slight drop in wages due to transfer of location for some reason I am paying more and I am in the middle of appealing this. The CMS got this figure based on the details HMRC have on me and my next assessment isn't due onto September 2018.0
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Yes, the second adults income is separate from mine. As for groceries, this is an estimate and I do not purchase junk & I tend to look around for prices. Due to the amount of exercise I do my appetite is pretty regular but I will definitely look into setting aside a set budget for this. Yes, the 431 is child maintenance. The emergency fund is my credit union. It literally is my emergency fund for things like random car maintenance issues, etc. I have this car going on 4 years now. The value at the beginning was 4000, but since checking online very recently it has dropped. My last payment for this is December 2018.
Thanks.0
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