mega problems and now scared

putty71

Hi
This is difficult. I am 30 k in debt, married 3 little uns and now struggling paying off one card against another and going nowhere. I have been stupid but would really appreciate some advise. Who would be the best lender to consolidate or who are actually helpful not crooked?

Emmzi

generally consolidation costs more in the long run and people suggest snowballing instead.

I know it's difficult but can you post your balances, your interest rates, and your minimum repayments and a numbers whizz will be along soon to advise!

Tixy

Hi Putty

My advice would nearly always be against consolidating your debts. You may end up paying a lower amount each month but you could be paying the debt for many more years and pay far more in interest in the long run.

We don't recommend consolidating your debts as many people take out a consolidation loan and simply end up running up their credit cards again. Everyone thinks they will be strong willed and won't do it but many do and many on here have kept doing this until they are in real trouble.

Its much better to work out some way of repaying your debts as they are. Ideally you need to reduce your outgoings or increase your income so that you have more money left each month to pay off your debts.

I'd suggest your first step is to write a financial statement of affairs (SOA) which lists incomings and outgoings and all your debts (this is a good template http://www.makesenseofcards.com/soacalc.html). Seeing everything in black & white may help you see where you can re-jig money to have enough to meet your debt repayments.

You could also post on here so that we can try to advise how you can save money/get things cheaper or maybe where you need to cut back.

Once you have the SOA done I'd recommend you talk to one of the free debt advice organisations such as citizens advice, CCCS or Payplan. They will help suggest a way forward and if you can't make your minimum repayments may decide that a debt management plan is the right way forward. This is where you pay them an agreed amount each month and they pay it to all to your creditors pro-rata to the balance. Often creditors agree to stop charging interest and charges on the account once you are in a DMP (although this can never be guaranteed).

Well done for posting, it is difficult to tackle your debts but good that you realise you need to. Good luck

talana

Emmzi wrote: »

generally consolidation costs more in the long run and people suggest snowballing instead.

I know it's difficult but can you post your balances, your interest rates, and your minimum repayments and a numbers whizz will be along soon to advise!

I second that, consolidation is not normally the answer.
Post a full soa, then people can suggest other ways to tackle it.
Here's the link
http://www.makesenseofcards.com/soacalc.html