I am digging deeper and need a lifeline! HELP!

Harry1978_2

I have increasing debt and it is spiralling out of control!

Since graduating I have incurred credit cards and loans and now a mortgage and I am missing credit card payments up to a point that my outgoings are exceeding my incomings!

My problem is that everything is all over the place. I need it all to be brought under one monthly manageable payment so that I know where I am am and can cope.

I have a decent job in sales, so I earn a reasonable basic wage and often get good commission.

I have tried to get a loan but get refused. I have only paid one mortgage payment, having only had a house for a month, so a homeowner loan is out of the question. I don't want to go bankrupt, but I do want to go to sleep at night and wake up the next morning with something else other than how I am going to cope on my mind.

A summary of my debt:

Loans: £3,000 HSBC. £2000 Natwest. £4,000 Citifinancial (High interest)
Credit Cards: £4000 Virgin. £2300 Natwest. £400 Barclaycard. £200 Capital one.

Total: £16,000

Any pointers would be greatly appreciated.

moo842

could you post your soa, your minimum repayments and your interest rates, sorry i know thats what people will need to help :j

Crispy_Ambulance

You need to pay your mortgage - that is a priority debt and if you don't pay it, you could lose your home.

As for the credit cards etc - the worst they could do is take you to court, so they have to be secondary creditors. I know being taken to court is scary and it is a last resort, but it is better than being homeless.

Borrowing to pay debts is never a good idea and just increases how much you owe.

Do a financial statement, and work out what you can reasonably afford to pay. If you negotiate with creditors and they accept what you offer, you can often set up standing orders which stops having to remember when to pay who etc.

You can always try Payplan - they are a free service. DO NOT GO ANYWHERE NEAR FEE CHARGING DEBT MANAGEMENT COMPANIES - THEY ARE PARASITES!

Well done on recognising you need to sort this out. That is the biggest and hardest step you can take. Also try National Debtline or your local Advice Centre.

tomstickland

Consolidation loans do not make the debt any smaller - they just APPEAR to make the problem simpler.

List the APR of each loan and the limit for each account. See if you can move any debt to the lowest APR accounts. Pay off the high APRs first.

When you post a SOA then people will be able to find numerous ways to cut your expenditure so you can attack the debts.

CammieBX

Hi

I have posted my own thread Follow Tips, but still skint. I graduated last year and am also still in debt. Dont have a mortgage but have increasing debts and am in need of advice myself.

Harry1978_2

Thanks for replying and sorry to be a nuisance but I am new to this, but what is soa???

magentadreamer

SOA = statement of affairs - basically what you have coming in and going out. if you look at a few of the other threads on here you'll see what people have put and what advice it's thrown up for them.

southernscouser

Hi Harry,

As others have said your priority payment is your mortgage! If you only pay one bill a month make sure it is this one or you could lose your home!

Although I am slightly confused how you managed to get a mortgage if you can't afford it?

OK, this might sound daft and really obvious but you are living beyond your means. You have to cut back on living. For us to help you, as moo requested we need a SOA.

Have a look at this thread for a guide.

SS