Tackling credit card debt.

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ButterflyBabe
ButterflyBabe Posts: 73 Forumite
in Debt-free wannabe
Hi all,

I'm hoping someone can help me. I have just taken stock of my credit card debt and give or take a few pound its £9000.00.

I am just about to come to the end of my 0% balance transfer period and sadly cant'shift any of my debt to a new 0% balance transfer card i have a feeling my debts will now start to really mount up once I start paying interest.

I only have £200 a month I can pay off my debts. Does anyone know of a way of consolidating the debts, freezing the interest and just paying a single £200 payment off a month without going down he IVA route?

Any help in this matter will be gratefully received.

BB xx

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  • System
    System Posts: 178,093 Community Admin
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    Not with only £200 a month to repay debts. You'll fail any affordability tests on new lending unless looking at sub-prime like Amigo which is likely to have an interest rate 2-3 times what your credit card does. It is also very unlikely you'll be offered an IVA either due to the lack of disposable income and the IVA practitioner is going to have a charge you'll have to pay, typically averaging £5,000 which is more than you'd pay in interest if you cut back and increased your income. Bankruptcy would be better than an IVA.

    I'm afraid that short of phoning up the credit card companies, falling their mercy and hoping they'll freeze the interest and even coming to an arrangement is going to harm your credit file. It is time for few years of pain, there is no easy way out of this. You need to both look at reducing your outgoings and increasing your income so post an SoA and the board can see where you're wasting money and where you can cut.
  • Vikipollard
    Vikipollard Posts: 739 Forumite
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    Tarambor wrote: »
    Not with only £200 a month to repay debts. You'll fail any affordability tests on new lending unless looking at sub-prime like Amigo which is likely to have an interest rate 2-3 times what your credit card does. It is also very unlikely you'll be offered an IVA either due to the lack of disposable income and the IVA practitioner is going to have a charge you'll have to pay, typically averaging £5,000 which is more than you'd pay in interest if you cut back and increased your income. Bankruptcy would be better than an IVA.

    I'm afraid that short of phoning up the credit card companies, falling their mercy and hoping they'll freeze the interest and even coming to an arrangement is going to harm your credit file. It is time for few years of pain, there is no easy way out of this. You need to both look at reducing your outgoings and increasing your income so post an SoA and the board can see where you're wasting money and where you can cut.

    Not sure I agree with the emboldened statement. I had more than twice the debt of the OP (over £19k), and only £208 disposable income and my IVA went through no problem.

    Not suggesting IVA is the right route for you OP - you need proper (free) advice for that. But surely a DRO would apply here anyway, as it's sub-£20k?
    LBM July 2006. Debt free 01 Sept 12 .. :T
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  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Are you a homeowner ?

    Do you have a car or other assets worth £1000 or more ?

    After all essential bills are paid, excluding credit, do you have more than £50 left per month ?

    If you can answer no to all 3, you may qualify for a debt relief order.
    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-letter
  • ButterflyBabe
    ButterflyBabe Posts: 73 Forumite
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    sourcrates wrote: »
    Are you a homeowner ?

    Do you have a car or other assets worth £1000 or more ?

    After all essential bills are paid, excluding credit, do you have more than £50 left per month ?

    If you can answer no to all 3, you may qualify for a debt relief order.

    In answer to your above questions-

    1.No I am not a home owner.
    2. I have a car on finance, I owe in the region of £12,000 on that.
    3. I would say after all my bills are paid I have around £100 a month left over.

    I don't think I will be eligible for a DRO as I have more money left at the end of the month.

    Do you think it is worth me still looking down this route?

    Thanks
  • kram
    kram Posts: 136 Forumite
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    The first thing to do is post your SOA here so people could give some advice?

    Its in the debt free wannabe sticky on the main page.
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    ButterflyBabe wrote: »
    In answer to your above questions-

    1.No I am not a home owner.
    2. I have a car on finance, I owe in the region of £12,000 on that.
    3. I would say after all my bills are paid I have around £100 a month left over.

    I don't think I will be eligible for a DRO as I have more money left at the end of the month.

    Do you think it is worth me still looking down this route?

    Thanks

    Hi,

    Not going on those figures unfortunately.

    Post your SOA its more than likely a debt management plan that will be suitable for you.
    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-letter
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