Advice on over 30k debt

CarlM2018 · 22 November 2017 at 1:15PM

Hi,
I have managed to rack up over 30k in debt, all paid up to date but i'm struggling to keep up with the payments. My credit isn't bad but my balance to limit ratio is pretty high.
I really want to consolidate most of my debt so i'm paying less each month, but because of the amount of unsecured debt i have, when searching on comparison sites my only options are high interest or guarantor loans and the payments are around the same.
Should i go on a debt management plan?
15k off the debt is a HP that i took out in May this year, I'm looking to give the car back as soon as I can, because there's not enough value in the car if i give it back to Volkswagen now I'd end up having to pay around £1500.
Any advice will be appreciated
Carl

[Deleted User] · 22 November 2017 at 1:20PM

What do you earn? It's highly unlikely you will get anything like enough to consolidate.

Post on the DFW board - they will give better advice on cutting costs and how to tackle your debts.

Sncjw · 22 November 2017 at 1:21PM

The reason your probably getting high interest is because the lenders are seeing it as extra 30k on top of the one you already have. If your struggling with payments now they will probably think you will struggle even more. There’s no garuntee your going to pay the debt off with the loan from their point of view.

Gentoo365 · 22 November 2017 at 9:36PM

UVSurely paying £1,500 and handing back the car is a good idea.

It reduces your debt by half and maybe it's easier to get a £15k consolidation loan, or continue with the payments on the remaining debt.

The car is going to reduce in value over time so I am not sure why it is worth keeping it if you have the option to hand it back and pay £1.5k to then reduce your total debt by £15k.

Assuming you dont need the car of course.

Sarastro · 23 November 2017 at 12:06AM

I'd speak to your bank actually, especially if you are working and your credit is still okay. A loan might be a better way forward, especially as you wouldn't necessarily be stuck with it forever - you could re-negotiate in a year's time.

The car is more tricky; sounds like it should probably go if you don't need it. You'd be better off getting rid of it and buying a cheap run around if you need a car.

DCFC79 · 23 November 2017 at 12:18AM

CarlM2018 wrote: »

Hi,
I have managed to rack up over 30k in debt, all paid up to date but i'm struggling to keep up with the payments. My credit isn't bad but my balance to limit ratio is pretty high.
I really want to consolidate most of my debt so i'm paying less each month, but because of the amount of unsecured debt i have, when searching on comparison sites my only options are high interest or guarantor loans and the payments are around the same.
Should i go on a debt management plan?
15k off the debt is a HP that i took out in May this year, I'm looking to give the car back as soon as I can, because there's not enough value in the car if i give it back to Volkswagen now I'd end up having to pay around £1500.
Any advice will be appreciated
Carl

What changed since you got the car on HP ?

Advice on over 30k debt

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