Reduce my debts?

Aruffell

I have around £14k of debts which i am managing by paying £10 a month to each of them.

They have all gone to debt management companies and as such, the interest has been frozen so i am paying the debt off (slowly but surely)

Due to the debt, my credit rating isn't fantastic and i get declined for credit cards etc...

2 of my debts are for my credit cards and if i pay them off in full, they will reduce the debt but i can't afford to do this.

I am just wondering, is there anything i can do to get my debts reduced at all? Any government legislation to help me out?

Once i have paid off my credit cards, can i have these cards back? For emergency purposes.

Thanks,

Andy

doodledo_2

I can't see you getting the cards back to be honest. Usually once you have defaulted they close the accounts and you just pay off the balance.

Do you really need a credit card for emergency as the temptation to overspend will be there again. You would be much better building up an emergency fund in a savings account which would earn you interest. I know its easier said than done but for me personally I will never go back to credit cards as I am not 100% sure whether I would find myself back at square 1.

I thought if you were in a DMP you weren't meant to apply for anymore credit? I may be wrong.

natsplatnat

Welcome!

Please post a SOA for all the helpful people to have a look at and make suggestions against! Its not as scary as it sounds and will, with no doubt, provide some solutions to managing your debts on your current financial situation!

I will pop back later for a look!

All the best.

Aruffell

Outgoing

£14k of debt
£70 per month to debtors (£10 per month to each debtor)
£20 per month court fine
£20 mobile phone bill
Anythin left goes to parents for rent.

Incoming

£191.80 per month Job Seekers Allowance

Andy

Aruffell

Anyone?

Andy

Horace

Please can you use this calculator:

https://www.makesenseofcards.com/soacalc.html

There is a button on there called MSE will allows you to format the Statement of Affairs so that you can copy and paste it here.

List everything including the APRs on the credit cards.

If you are on the dole, you will not get another credit card.

Aruffell

Statement of affairs -
Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 191.8
Other income............................ 0
Total monthly income.................... 191.8
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 80
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 100

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt
Unsecured Debts
Description....................Debt......Monthly...APR
Barclays Finance...............1152......10........0
Capital One....................300.......10........0
EDGE...........................666.79....10........0
Vanquis C.Card.................318.46....10........0
Natwest Overdraft..............1161.31...0.........0
Natwest Loan...................9082.8....0.........8.9
Lloyds Overdraft...............780.......10........0
Lloyds C.Card..................390.......15........15.9
HMCS...........................280.......20........0
Total unsecured debts..........14131.36..85........-

Monthly Budget Summary
Total monthly income.................... 191.8
Expenses (including secured debts)...... 100
Available for debt repayments........... 91.8
Monthly UNsecured debt repayments....... 85
Surplus(deficit if negative)............ 6.8
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -14,131.36
Net Assets.............................. -14,131.36
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Aruffell

I don't know what the interest is on the Natwest Overdraft but the others with 0% next to them are with debt agencies and hence i don't have to pay any interest.

Andy

2009_is_my_year

I think without wanting to state the obvious that once you manage to find work then your income will increase and you can throw more money at the debts. Is your working situation likely to change anytime soon? Bit of a million dollar question I know but are you long term unemployed or looking for work? If you are in a sector that is struggling have you thought about retraining to get some skills that will up your chances of future employment?