Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • mrcactus
    • By mrcactus 21st Sep 16, 7:56 PM
    • 2Posts
    • 1Thanks
    mrcactus
    10k in debt and don't know what to do
    • #1
    • 21st Sep 16, 7:56 PM
    10k in debt and don't know what to do 21st Sep 16 at 7:56 PM
    Hi all. I'm new to MSE forums and hope I am posting in the correct place.

    So, basically I've borrowed too much money as I've gambled my wages away each month for about 3 years.

    I have been using credit cards to live on and managed with them until recently then I started on the payday loans. So now when I get paid I have to pay those payday loans and my credit cards and I will be lest with about minus £200 on payday.

    I always make sure my mimimum payments on credit cards are paid and always pay my bank loan on time. But now because I have the payday loans to pay, I now use them again to live off through the month.

    Here is what I owe, I know it's nothing compared to other peeps out there but just feel like I'm in an endless circle:

    Lloyds Loan: £5000
    LLoyds Credit card: £1600
    Barclays credit card: £1800
    Capital one: £200
    Capital one platinum: £200
    Aqua: £1450
    Vanqus: £800
    Argos Card: £450

    I'm currently in contact with Barclays and they have frozen interest on my account last week for 30 days until I tell them what I want to do. They are asking for an income and expendature form before they will decide to reduce my interest down to 3% from like 34.5%.

    I just don't know what to do. The capital one cards don't bother me as much as the minimum they are asking for each month is around £5-£6.50 on each. But others like Aqua and barclays I have to pay about £55-£69 a month as I always seem to go over my credit limit (without using the card ) as they auto add a £12 charge each time.

    Have looked into IVA, DMP and even asked if the bank would give me another loan, but I was not suprised they said no

    The bank loan is about £132 per month, for like 5 years but not too bothered by that as the loan does not increase in size, unless I take a repayment holiday.

    Any help or advice much appreciated. Thanks guys.
Page 1
    • sourcrates
    • By sourcrates 21st Sep 16, 9:04 PM
    • 7,484 Posts
    • 7,433 Thanks
    sourcrates
    • #2
    • 21st Sep 16, 9:04 PM
    • #2
    • 21st Sep 16, 9:04 PM
    Hi,

    Welcome to MSE.

    First thing you should do is complete a statement of affairs (SOA) so we can see what your income/expenditure is, and where, if anywhere, cuts can be made.

    http://www.stoozing.com/calculator/soa.php

    As a basic first rule, unsecured debts come last on the list to pay, if your going to be short of money, you should take immediate steps to stop payments going out of your account.

    Nip this in the bud now, don't try to borrow your way out of this, that seldom works, cancel all payments to loans, cards, payday loans etc, then get some advice on how to proceed.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • enthusiasticsaver
    • By enthusiasticsaver 21st Sep 16, 9:23 PM
    • 2,142 Posts
    • 3,774 Thanks
    enthusiasticsaver
    • #3
    • 21st Sep 16, 9:23 PM
    • #3
    • 21st Sep 16, 9:23 PM
    Are you getting help with your gambling addiction? As sourcrates says you cannot borrow your way out of this. It is time for you to stop using credit cards and payday loans and start to live within your income to stop this getting worse. Posting an SOA is a good start and writing to your creditors with an arrangement you can afford to pay. This may be less than the minimum payment but you must not use payday loans to live or you will make the problem much worse and get caught in a debt spiral if you are not already there. Is it possible to get any 0% deals or is your credit rating no longer good?

    You could also look into a DMP if you can no longer cover your essential bills and minimum payments. Stepchange should be able to help you with that.
    Save £12k in 2016 #46 £13600/£12,000
    Debt and mortgage free and saving for early retirement
    • mrcactus
    • By mrcactus 21st Sep 16, 9:55 PM
    • 2 Posts
    • 1 Thanks
    mrcactus
    • #4
    • 21st Sep 16, 9:55 PM
    • #4
    • 21st Sep 16, 9:55 PM
    Are you getting help with your gambling addiction? As sourcrates says you cannot borrow your way out of this. It is time for you to stop using credit cards and payday loans and start to live within your income to stop this getting worse. Posting an SOA is a good start and writing to your creditors with an arrangement you can afford to pay. This may be less than the minimum payment but you must not use payday loans to live or you will make the problem much worse and get caught in a debt spiral if you are not already there. Is it possible to get any 0% deals or is your credit rating no longer good?

    You could also look into a DMP if you can no longer cover your essential bills and minimum payments. Stepchange should be able to help you with that.
    Originally posted by enthusiasticsaver
    Hi, thanks for your reply. I have not sought help with my gambling yet, as I thought I could manage it on my own, which I clearly can't. So that's something I'm going to fit in around work like going to a GA meeting near my town.

    If I don't get the payday loans each month I will have nothing to live on. I buy my own groceries for the house as I don't pay any rent and my parents are struggling money wise so don't want to eat all the food haha.

    My plan was, to continue paying the minimum on my credit cards etc but borrow less from the pay day loans each month. So the less I borrow from the loans each month, the more of my own income I have left each month until I don't have to use the payday loands anymore. Any thoughts on this, or is this a bad Idea alltogether?

    Thanks again
    • MrsSave
    • By MrsSave 21st Sep 16, 10:17 PM
    • 839 Posts
    • 2,764 Thanks
    MrsSave
    • #5
    • 21st Sep 16, 10:17 PM
    • #5
    • 21st Sep 16, 10:17 PM
    That doesn't sound like a good idea at all.

    Sourcrates posted the link for an SOA. That would definitely be a good place to start. When people will see your full financial situation, they will be able to advise better.

    I have no experience with gambling addiction, so others would be in a far better place to advise, but it is something you do need to seek help with.

    Edited to add: don't worry, though. Debts can be sorted out with some hard work and determination.
    Emergency fund #16 £111.36 Premium Bonds £1000
    Loan repayments: 13/60 Overpayment total: £25
    Check out my debt free diary 'A Pound Stretching Maternity' below:
    • nkkingston
    • By nkkingston 22nd Sep 16, 11:27 AM
    • 265 Posts
    • 309 Thanks
    nkkingston
    • #6
    • 22nd Sep 16, 11:27 AM
    • #6
    • 22nd Sep 16, 11:27 AM
    Do not take out debt to pay debt!!!

    Payday loan companies are not allowed to starve people to death or make them homeless.

    These are not priority debts, and they can only make you pay them at a rate you can afford. You need to complete a SOA and work out what proportion of your income goes on living expenses: groceries, your share of rent and bills (even if you don't pay anything currently, if you're parents are struggling you should be! Budget for it) and other necessary expenses like car costs. Post it here and people will help you figure out if you're being reasonable with yourself and what options are open to you.

    You can self exclude from gambling shops and sites. I'd get on this, now, while you're looking for a GA meeting to attend. Otherwise you're just treating the symptoms, not the disease. Gambling is a way of trying to feel in control of the uncontrollable, but your finances are absolutely something you can control.
    Mortgage
    June 2016: £93,295
    Setember 2016: £92,105
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

187Posts Today

1,674Users online

Martin's Twitter
  • If you know you're bust you must declare it asap. So no firm ever says "yes we plan to go insolvent". So you never? https://t.co/w8aIKOqHzq

  • Some people misreading... it's NOT the rumours of insolvency of the Monarchy! Its Monarch airlines (again tho I've no idea of its validity)

  • Also re #monarchinsolvency rumours it's important to state Monarch are firmly denying it... https://t.co/N27MENRjY9

  • Follow Martin