Up the creek without a paddle!!

acheekymunky

My minimum payment on my debts at the moment exceed my wage..I have just started a new job with a very low basic salary but the opportunity for commision is huge. Obviously with just starting the job I am just setting up my business as such and will only be on the basic for a few months.

I cannot get a loan to consolidate my debts as I have been refused multiple times and my credit score has gone from good to fair in a matter of weeks.

What should I do?!?! Would anyone suggest going to a credit counselling service?

Help!

JAMIEDODGER

if you post your list of incommings and outgoings then we can see where there are cutbacks to be made.

acheekymunky

The worst thing is I have been a user of this website for a few years! I need to change my whole attitude, Im one of those live for today pay for it tomorrow type of people!...I was recently unemployed for three months so all my spending was taking cash from my credit cards!

Here it goes

Egg card £6206.16 42 mths remaining £169 per month 7.9%apr
Amazon credit card £3000 maxed 12.9%
Egg card £2000 maxed 15.9%
Abbey overdraft £1500 maxed
HSBC overdraft £1500 (currently £1750) well maxed! and I am paying fee's for all my withdrawels as I am over my limit
Natwest overdraft £1600 maxed
Student loan £5500 (payments not yet started)

My mobile phone bill is £45 per month, I tried to reduce this to £20 but even consciously using my phone my bills were coming in at £75 so I know I wont go over the £45 tarrif.

Thanks

acheekymunky

Oh yeh I forgot

Rent £300 all bills included
Bus fares £56

That doesnt include food! which I probably spend £100 a month as I buy sandwiches out for lunch at work. I know I will save money if Im more prepared and buy from a supermarket and pre prepare my lunches.

Thanks

Xbigman

You need to write to your creditors explaining your change of circumstances and making token payments of £1 each. Open a basic bank account and have your pay put into it. Cancel all DD's on the cards and loans. This will trash your credit rating completely but will buy you time to get yourself sorted. Give it three months to see how much commision is actually achievable (my brother has done lots of commision based jobs, some commisions are worthless). After three months you can go through CCCS and sort out a full debt management plan.
Regards



X

System

Contact Payplan or CCCS. I believe that CCCS are taking about 2 weeks to get back to you. I went with Payplan and from initial contact it took about 3 days to get my appointment and the news and the weight that lifted from my shoulders was a lifesaver.

scholt

acheekymunky wrote:

The worst thing is I have been a user of this website for a few years! I need to change my whole attitude, Im one of those live for today pay for it tomorrow type of people!...I was recently unemployed for three months so all my spending was taking cash from my credit cards!

Here it goes

Egg card £6206.16 42 mths remaining £169 per month 7.9%apr
Amazon credit card £3000 maxed 12.9%
Egg card £2000 maxed 15.9%
Abbey overdraft £1500 maxed
HSBC overdraft £1500 (currently £1750) well maxed! and I am paying fee's for all my withdrawels as I am over my limit
Natwest overdraft £1600 maxed
Student loan £5500 (payments not yet started)

My mobile phone bill is £45 per month, I tried to reduce this to £20 but even consciously using my phone my bills were coming in at £75 so I know I wont go over the £45 tarrif.

Thanks

watch out going over your overdraft with HSBC - I did it for years (graduate account) by up to £200 and they never said/charged anything but went £5 over last month and they were ringing me daily at one point. Which is fair enough I suppose - just don't know where the change in attitude came from!

acheekymunky

I know CCCs is probably the most obvious option for me right now but it just seems like a bit of a kop out! How would going through the CCCS affect my future credit? like when I want to settle and buy my own home etc will I find it harder getting credit?
Thanks

CLAPTON

You say you have been a lurker on this sight for several years, so you know to post a proper SoA.
either do or don't.
without it noone can reasonable advise.

fatbelly

acheekymunky wrote:

I know CCCs is probably the most obvious option for me right now but it just seems like a bit of a kop out! How would going through the CCCS affect my future credit? like when I want to settle and buy my own home etc will I find it harder getting credit?
Thanks

You're not going to be able to preserve a decent credit rating - your priority is to work out how you're going to have enough money to live on.

Follow X's advice and when he says to open a new basic bank account - obviously not with HSBC, NatWest or Abbey!

Xbigman

CLAPTON wrote:

You say you have been a lurker on this sight for several years, so you know to post a proper SoA.
either do or don't.
without it noone can reasonable advise.

Sorry but I'd have to dispute this statement. A full SOA is undeniably usefull in getting an overview of any posters debt/life situation and I would encourage everyone to do one and post it. But it is not totally essential to post one on these boards. Some people are uncomfortable laying out all their financial problems to strangers and they can still get some fairly general advice that proves very usefull. That said, everyone should do an SOA even if only for their own information and not for posting. Its common to be be quite shocked the first time you see it all written down.

I hate to think someone did not seek any advice at all for fear of posting an SOA.
Regards



X