Debt advice please-where to go next?

shoperholicnot

Hi all,

I have a £10,000 bank loan which I got to pay credit cards, its for 36 months and I have about 14 left to pay at £320 a month

I also still have about £10k on credits cards and I am being charged interest on them all.
I have tried to get another 0% credit card but have been refused.
So I am just paying as much as I can on the credit cards but the debt does not seem to be moving and I am always skint, the interest rates are about 22%
I have just applied for another loan for £5k to at least cover half and the interest would be 11.9 which is a lot better, the thing is I think I will get refused.
what should I do now? I am managing to make to the minimum payments JUST but i am so skint and I cant see the point of going on like this if it is not making an impact on the debt-I am basically just paying interest.

What should i do, should i got to a debt agency, is there any chance that I would at least be able to get the interest frozen?
Thanks for any advice

Tixy

Hi

You first need to work out a detailed monthly budget and this is the best form http://forums.moneysavingexpert.com/showthread.html?t=107280 as it includes all the info anyone would need. Once you know whether this shows a monthly surplus or shortfall you can decide on your next step.

If you have a shortfall then you need to look where you can cut back and if you can't get rid of the shortfall then you need to seek advice from one of these - http://forums.moneysavingexpert.com/showthread.html?t=2077631

who will recommend options for you. If they recommend a DMP then you could go down this route and they would ask your creditors to freeze interest but it is up to the creditors whether they choose to freeze interest, nobody can make them, its likely some of yours may and some may not. However a DMP will seriously impact on your credit rating for years and you cannot take out any more credit for the duration of the agreement -so its not a option to be taken just to try to freeze interest but is a possibility if you cannot manage without it.

If you post your budget (SOA) results on here people will be able to advise on ways forward for you.

niksyg

hey there shoperhoolicnot,

have you done a Statement od Affairs? There are some lovely people on this board who I am sure would have a look at it for you and tell you what they think would be the best plan of attack.

From my limited knowledge I'd say stop applying for credit...you need to make a start now on improving your 'credit rating' and also the more you apply and get refused the more that will happen - vicious circle! So I'd say just concentrate on paying off what you have already with cash rather than more credit.

I am sure the answer is yes but are you doing everything you can to cut back on spending to help you have more money to go towards the debt? I'd guess that is the first place to start, as well as create your SOA and be really accurate in your amounts - no 'abouts' or 'approxs'!

Hope that helps a little!