Struggling with debt? Ask a debt advisor a question

TerryHu wrote: »

Hi I was wondering if you can give me any help regarding my debt.
I earn 1950 p/m after tax and also have a ltd company where I take about 600 per month in dividends although that money is starting to run out.
Anyway Im struglling with the amount of debt I have although have never missed a payment on any loans etc.
I have the following monthly outgoings
Personal Loan- 177
Personal Loan- 46
Business loan- 216
Credit Card1- 100
Car loan - 133 (this is in my father in laws name though as we were refused credit so we pay him back monthly)
Credit Card2-65
Credit Card 3- 28 in my partners name
Overdraft charges- 45
Mortgage- 553
Home Ins-40
Car-60
Student loan-26
Life Ins- 21
Tv/Internet/Telep- 60
Mobile phone- 60 stuck in two year contract for our phones
Council Tax- 120
Gas/electricty -105
Out total debt is just under 30000
Basically our outgoings on the above is nearly 1900 On top of all that I have the usual other stuff food petrol and we have two kids and my wife doesnt work at the moment as they are both under 3.
Anyway my business is not doing that great at the moment hence the reason I back full time employed and when the money in the company runs out we wont have enough to cover our monthly outgoings. I really dont want to get in a credit agreement as this house is not big enough and eventually once we are out of debt we will be looking for a new mortgage and I dont want this to affect my credit.
Also our credit rating isnt great so we cant balance transfer to cheaper credit cards etc.
Is there anything I should or could be doing?
Thanks

Hello,

Thanks for posting. It sounds like a tricky situation, as you are heading towards a point where you won’t be able to cover all the monthly outgoings but also want to preserve your credit rating.

Our general view on these sort of situations is that it is better to make affordable payments to debts, even if it means taking a hit on your credit rating. The only way to maintain a good credit rating is to pay everything in full and debt can quickly snowball when you start paying one debt with another.

So you can be fully aware of your options I would suggest getting in touch with us for debt advice. The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Hope this helps.

James