Huge credit card debt

hypno06

Am signing off now, but I hope you get a more relaxed night's sleep now - the next few days as you start working on your options and starting to make changes will mean you also sleep better as the stress and the worry lifts.

That in turn gives you more energy, drive and debtbusting focus, so has to be a good thing!

DVardysShadow

hypno06 wrote: »

If debt is unsecured, then it won't (except in very exceptional circumstances) risk your home......so even when you default, or miss payments etc, your home is secure, as long as you keep up your mortgage payments.

As soon as you shift some of that unsecured debt onto the mortgage or some other secured loan, you also shift the risk - NOW, when you can't make a payment, it is your home that is on the line, not just your credit rating.

I think that is what DVS was meaning?

I think there has been a change which means that unsecured debt can be converted to secured after a CCJ has been gained. But I am referring to shuffling debt to save the home - and I am also referring to shuffling mental effort.

And I think there is a karma thing as well. If you hold on to something too tightly it will show the crush marks where you held on to it and you could end up hating it. Or keeping it and losing your soul.

kingston_2730

Dvardysshadow, thanks for the explanation, sorry about earlier post. I am mentally a wreck at the moment. Hypno-that all makes perfect sense and I am relieved to know that with unsecured debt it is unlikely that we would lose our house but why is that? Surely if you don't keep up with cc payments, they can eventually take the house, no?? I think I have soooo much to learn. I am so glad there are options anyway.
Poosmate, thanks for your kind words. Everyone, I promise I won't be like this forever, just a disaster at the mo. oh and btw, applied for and have been accepted as a mystery shopper. I work full time so this will have to be squeezed in. Have also, thanks to you all, discovered the amazing thing that is 'Quidco'. Who would have known such a thing would exist? Amazing!! My poor mum has already cleared out her spare room of things for me to sell on ebay, bless her cotton socks!! She has actually just also offered to pay for my dd's ballet for the year and for her irish dancing the £350 irish dancing dress that she requires to compete. Also, she is paying for my ds's school trip to London (another £250). She's amazing and is always there for me. I feel really guilty about accepting it but she doesn't want the kids to suffer. She is very good with money management and this is very difficult for her to take in (as is with ourselves!) She is amazing!!!! Also, started reading something about matched betting but think I will have to give my brain a little rest before I delve deeper into this mystery money maker. Any other suggestions to boost income? Someone mentioned surveys??? Thanks to all xx

kingston_2730

sorry...I know, I know, will try to get strength to post SOA soon xx

debtman2007

pepe2008 wrote: »

I've been with CCCS for almost 2 years...........but I'm coming off it because they dont allow the 'flexibility' I need to be able to take the next steps in clearing my £50k+ debt.

Pepe,

thats interesting, what do you mean dont allow the flexibility? im with CCCS also

kingston_2730

Yes I also was wondering what this meant. Also, can anyone clarify if going on DMP with CCCS, is the length of the payment period negotiable ie is it possible to pay a lower amount over a longer period? They have quoted me £1957 over 5 years which is not doable for us. I just completed the online budget assessor thingy which did not allow for other outgoings not mentioned on form.

Oneday77

kingston_2730 wrote: »

Yes I also was wondering what this meant. Also, can anyone clarify if going on DMP with CCCS, is the length of the payment period negotiable ie is it possible to pay a lower amount over a longer period? They have quoted me £1957 over 5 years which is not doable for us. I just completed the online budget assessor thingy which did not allow for other outgoings not mentioned on form.

The amount you pay to the CCCS is dependant on what is left of your outgoings that can go towards your debt.
If it isn't on the form they see it as being non essential. There is room for maneuver though so if you post your SOA and then put a note of what you think you need to add on people can make suggestions.
One thing I meant to ask, what cars do you drive? Also if your OH has a 1 hour trip to work is there a bus or train station nearer to home? A season ticket may work out less than petrol\diesel.
Also unless I missed it, don't apply for anymore credit. I kept trying to buy myself out of debt that way and £1000 9 years ago soared to over 20times that. I am now with the CCCS and it is a huge help, just remember they are not the only hope but it is an option.

hypno06

Morning! Hope you slept well.

I will let others give the answers and opinions on CCCS and other DMPs because I have not gone down that route so not experienced the "realities" but when you say £2000 over 5 years is not doable, what is it that you mean? Sorry, don't understand!

Good luck with the mystery shopping - I have been doing this for about 8 years now......I work full time and although I don't fit in as much as I used to, I still get enough to make a difference. I have a visit to do this lunchtime, for example, which will get me just £5, but it is easy money, and a fiver will be gratefully received.

Matched betting is excellent, but I would strongly suggest you wait until you really do understand it. Also, and this might sound odd, wait until you know what you are doing by way of your SOA and attacking your debt. The reason I say that is because once you start earning this extra cash, if you are still believing that there are certain things you can't change or give up, then that extra cash may simply go towards things that are ultimately not needed, and you may look back later and wish you had directed the extra cash more productively.

I'm not sure I explained that last bit well enough, but I hope you get what I mean!

Anyway.......have a good day.

hypno06

Also.....some other things to start thinking about (the "tough love is about to kick in, you have been warned!):

Now, obviously I have not seen your SOA so don't know the details......so, again, take what really is relevant, and ditch what isn't, but these are the sort of things you are going to need to think about.....REALLY think about.

Your kids do expensive things and you want that to continue. Fair enough. My two ski, and in the same way as you want to buy an Irish Dancing dress for £350, I would buy a pair of skis for a similar amount. I won't tell you to stop the kids activities.

BUT, what is your trade off? How much do you want them to do this, and what are you prepared to give up in order for them to do it? Also, how much do THEY want to do it, and what are they prepared to do and to give up......

An example is - my kids ski. It costs a lot, and we need to factor that cost into our SOA, but that means that something else has to give.......if you were to look at my soa, you would see that it is really, truly, pared to the bone.....my grocery budget is small, I now only run one car (yes, it is sometimes awkward, and we too are rural, but we have managed now for 18 months with a motor bike and a car, and a lot of compromise), we cut back on our own "treats" eg takeaways, eating out, and presents......but also, my children give up a lot in order that they can ski. If I ever mention that they are not getting Christmas or birthday presents because they have a new pair of skis/an extra week's training/etc, then that is exactly what I mean......for several years, my two have traded in their birthday and Christmas presents so that they can do what they love. Others in the family will buy them small bits, but usually, even Grandparents etc will either buy ski kit, or give money towards the cost of their training......THAT is how much they want to ski, and so everyone makes a real real effort.....so in our house there is no games console, no sky tv, no trips to the bowling alley, etc etc etc.

In addition, OH and I give our time in order for "free ski time" in return......and I did the same with karate before they gave that up in the summer - eg I would help out at a karate grading, on the admin side, and in return, one of the kids would grade for free - a saving of £20 in return for watching the grading from behind a desk rather than with the other parents.......If I help out at a ski race, I generally get free coffee and a free lunch.......helps eke out the budget as I would have to be there anyway, and can end up easily wasting £15 on coffee to keep me awake while I am there.........

The day they turn round and say that they want a Wii, is the day the focus shifts, but at 14 and 15 now, they know the score, they know that you can do the things you want to do if you make sacrifices elsewhere, and they are very much part of that decision making.

So.....start looking at your budget, and being really critical - in a very positive way, about what you spend and where. CCCS won't accept dance costs probably as being an "essential spend" so you will have to get savvy with your SOA and start working out where you can shave the other costs in order to keep your children dancing and going on school trips.

There will be a lot of mind-shifts needed in this journey, but once you have shifted, you will get a huge benefit!

DVardysShadow

kingston_2730 wrote: »

Dvardysshadow, thanks for the explanation, sorry about earlier post. I am mentally a wreck at the moment.

No probs.

Keeping Home => Emotional Reaction
Slaying Debt => Logical Effort

Good to see you are already under way with debt slaying. The more you succeed at that, the less your emotions will be reacting to threat. And the more likely you are to come through it sane and happy.

I would still urge you to put up your SoA - at the moment it is not about the last tin of beans, it is about getting the big decisions put in place. If in all honesty, you can't save your house, it is better to let it go, because if you end up bankrupt trying to save it, you end up with less choices later on, whereas if you stay solvent, you can always work back to what you want. And if the SoA shows it can be saved, then you will have one issue resolved. It really is time to open the box. If you have 2 frogs to swallow, swallow the larger one first.