Loan or other option?
Options
I have a number of credit cards, total debt about £30k
I have 3 loans , total debt about £20k
I do earn well but am constantly broke. I can break even but it's frustrating me I'm paying the credit cards forever with no end in sight as I can't afford the over payments.
Can't decide on the best option, an IVA or bankcruptcy or just get a loan so at least I can kill all these debts off in 5 years.
Any pointers?
I have 3 loans , total debt about £20k
I do earn well but am constantly broke. I can break even but it's frustrating me I'm paying the credit cards forever with no end in sight as I can't afford the over payments.
Can't decide on the best option, an IVA or bankcruptcy or just get a loan so at least I can kill all these debts off in 5 years.
Any pointers?
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Comments
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Do an SOA on the DFW board and take it from there.0
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have a read of the bankruptcy board to see what it involves?2021 GC £1365.71/ £24000
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Thanks, sorry what is a DFW board and an SOA?0
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harrison22 wrote: »Thanks, sorry what is a DFW board and an SOA?
DFW=Debt-Free Wannabe ( a sub-section of the main MSE forum ). SOA = Statement Of Affairs ( details on the DFW board ). Basically a detailed breakdown of your income and outgoings, the good folk over there will suggest ways you can cut your outgoings in order to repay your debts.
In a nutshell, bankruptcy or IVA may be an option - but neither is a step to be undertaken lightly. Both will have big ramifications on you, as well as on your ability to borrow in the future.
A loan - no, borrowing from Peter to pay Paul simply shifts the debt elsewhere. Even worse if you take a loan, use it to pay off the credit cards, then re-spend on the cards - you end up with double the debt.
You need to tackle the root cause, not the symptoms. An SOA is a good starting point. You'll be amazed at how often we see people spending £50 a month on a pay-TV package, or £100 a month on a gym membership, or who refuse to buy their food from anywhere other than Waitrose or M&S. Things like this are luxuries if you're wanting to clear debts. And putting it down in black-and-white, so to speak, is often a good way to see where your money is going. You may suddenly realise "Blimey, I'm spending £20 a week on coffee at Starbucks", or whatever it may be.
I'm not saying it's an easy task - of course you're going to have to make sacrifices. But do you want to be in spiralling debt for the next how-ever-many-years, or would you prefer a few months / couple of years of tightening your belt, if it means you can then pay off the debt and start enjoying the luxuries again - only this time, with no worries ?0 -
I agree with all the above.
The DFW board is a good place to start.
Do you have anything to show for your debt?
Do you know what caused it?
Is it likely to happen again?
If you are ready to face this, the forum users on the DFW board will be honest with your SOA if you can be honest with it and yourself. It's easy to create a wishlist when compiling the SOA - don't make that mistake, be brutally honest with yourself.
You'll be surprised where savings can be made on daily expenses.
Don't expect it to be an overnight fix - the debt didn't arrive overnight and isn't going to disappear that quickly either but facing up to it is the first step.
All the best.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 -
I was thinking more that I would happily rip up the cards, I don't use them anymore and haven't for 6 months, I just hate paying £750 a month in interest on them and they never shift. If I got a loan fixed payments , fixed end I could right that off entirely and have one simple payment to make. It may even be more expensive than paying the cards off but at least they would be gone forever.
I don't actually need the cards.0 -
See if you can swap them to zero percent interest cards then rip up the old card. You've got to live within your means as a £50k debt is some feat tbh.:T:T :beer: :beer::beer::beer: to the lil one
:beer::beer::beer:0 -
harrison22 wrote: »I was thinking more that I would happily rip up the cards, I don't use them anymore and haven't for 6 months, I just hate paying £750 a month in interest on them and they never shift. If I got a loan fixed payments , fixed end I could right that off entirely and have one simple payment to make. It may even be more expensive than paying the cards off but at least they would be gone forever.
I don't actually need the cards.
"One simple payment" sounds like you've been watching too many adverts. Six, seven eight payments are not mentally difficult.
What is difficut is stopping spending.2021 GC £1365.71/ £24000 -
Why do you want another £10k??
Sell the house. Pay the debt. You'll have £45k over after fees.
Start again.
http://forums.moneysavingexpert.com/showthread.php?t=57154232021 GC £1365.71/ £24000 -
What did you spend your 3 loans on?0
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