Huge credit card debt

kingston_2730

how big? how did you do it?

euronorris

kingston_2730 wrote: »

how big? how did you do it?

You really need to complete your SOA and post it up here.

We can then help you to identify areas where cutbacks can be made. It may be that, with a few cutbacks, you could afford to clear it, without needing a DMP. But you won't know until you have the full picture in front of you.

A DMP will offer you the opportunity to pay less, but it will ruin your credit rating for at least 6 years.

But, like I say. You may not need to go down that route, but we can't advice more without seeing your income and expenditure.

DVardysShadow

euronorris wrote: »

You really need to complete your SOA and post it up here.

We can then help you to identify areas where cutbacks can be made. It may be that, with a few cutbacks, you could afford to clear it, without needing a DMP. But you won't know until you have the full picture in front of you.

Also, sometimes there may be better ways of going about repayment which become obvious from the schedule of loans in the SoA

kingston_2730

My dh and I are thinking if we could keep paying minimum on ccs for a couple of more years and then we are hoping our house value will go up so we can take a higher mortgage to transfer some of the cc debt onto. I know its not ideal but we really love where we live and don't want to lose our home and wreck are credit rating for 6 years. Any comments? Oh and I am working on my SOA for you all, it is taking a while with having so much debt!! I really don't think there is anywhere else we can cut back though as it is already done to the bone.

DVardysShadow

kingston_2730 wrote: »

My dh and I are thinking if we could keep paying minimum on ccs for a couple of more years and then we are hoping are house value will go up so we can take a higher mortgage to transfer some of the cc debt onto. I know its not ideal but we really love where we live and don't want to lose our home and wreck are credit rating for 6 years. Any comments? Oh and I am working on my SOA for you all, it is taking a while with having so much debt!! I really don't think there is anywhere else we can cut back though as it is already done to the bone.

Don't plan on house values going up for a long time yet. In any case, that is never a way out of debt, it just rolls it up for later and ultimately you do have to pay it off. Ultimately your house may mean you are solvent and can't go bankrupt, but if you love your house you may have to face leaving it.

You are more likely to lose it, I would say, if your best plan is to take out a higher mortgage. SOA awaited!

dancingfairy

:eek::eek: Sadly putting the debts on the mortgage rarely solves the problem -unless you really have changed your ways then you will just run up more and more debt and keep adding it to the house.
Also if it is unsecured debt and you can't pay it then it is a lot more likely you would keep your home, whereas if it goes unto the mortgage and you can't pay then your home can be more at risk. Basically you have a lot more options with unsecured debt.
Also house prices don't always go up and you don't want to be left in a position of wanting to sell at some point in the future and having negative equity.
And yes there have been a few people on here who have dug themselves out of a hole with over 100k debt without going bankrupt- they have worked extremeley hard and have also I believe had relatively high incomes to be able to do it.
Bankruptcy is not necessarily inevitable.
You need to do a thorough SOA and a) post it on here or b) get in contact with one of the debt charities eg CCCS or National Debtline or your local CAB - CCCS have an online thingy in case you want an idea of what they might suggest before you phone up and speak to them or c) do both .
df

InaPickle

Hi Kingston,

As everyone says, get your SOA up as soon as possible so people can see it there are any areas where savings can be made that you haven't though about. Other than that, it the meantime start reading some diaries of people who have started with large amounts of debt and have been whittling it down to give yourself some inspiration and see that it CAN be done. I would personally recommend Hypno06: the woman's a blooming marvel:

(http://forums.moneysavingexpert.com/showthread.html?t=1985605&highlight=hypno+diary)

In the meantime start taking on board the idea that your life is going to change, but that in order to deal with these debts, it can never go back to how it was. It will take time, patience and many ups and downs, but it CAN be done! :T

And most of all GOOD LUCK! :j

kingston_2730

Inapickle, thank you so much for your positive post. I'm very scared and part of me feels that no matter what cut backs and changes we make we may never get out of this hole. I'm off to read the link you posted. thanks again

pepe2008

Inportant things....Family, home.

A Debt Management Plan allows you ( hopefully ) to make arrangements to repay your debts at a rate that is manageable to you.

You must only enter into one with a non-fee charging provider ( eg CCCS ) If it all goes to plan, then your Creditors will accept the offered repayment and not charge any further charges or interest.

It will wreck you credit rating for 6 years ( after paying off the debts ) but you have probably already done that anyway if you have been Defaulted etc by your Creditors.

The important thing is that a well set up DMP will give you some control of your Creditors. This is a good thing for you and your Family.

Do not be tempted by an IVA. Do not pay for advice.

hypno06

kingston_2730 wrote: »

Hi has anyone ever heard of anyone who has had 100,000 + on credit cards and come out of it without going bankrupt?

Yup.....me.

Had over £100k on credit cards and high interest loans on top of a £175k mortgage. OH and I only earn an average salary between us (mine is above average, his is below average) and at its worst, my minimum payments were £2200 per month, which is way more than my salary was at the time.

With hard work, focus and effort, we never missed a payment, somehow managed to pay everything, and are now down to having £20k debt.....all that without even going on a DMP. My minimum payments are now less than £400 - rather a difference from 3 years ago.

We did it by using the advice on these boards to get extra income in and make savings. We worked on our budgets, made our groceries go further, took in foreign students, took advantage of all the freebies, loopholes and suchlike as we could from MSE.......we sold our second car, etc etc etc

It CAN be done - it IS hard work, it is NOT always fun, and sometimes it feels downright impossible.

But I am living proof that on an ordinary salary, huge debts can be beaten......even if you want to retain a good credit score.