Desparate for Help with Credit Card Bill

Kelly's_Mum

I have in total £15k worth of credit card bills. I am three months behind with one of them and have an arrangement. The company concerned have offered that the outstanding balance can be turned into a loan of some sort which I would be able to pay off over 5 years but sooner if I was able. I am one month behind with my mortgage with their agreement and this month I have paid my normal payment with an extra payment to clear the arrears in 4 months.

If I take the offer from the credit card firm will that ruin my credit rating forever or should I try to find a personal loan to consolidate all my debts? I keep dreaming that I will win the lottery or find a kind benefactor but I am realistic enough to know that I have to get out of this mess myself. I cannot discuss it with my husband as he is not well at the moment!

Can someone please advise me how to escape from this mess.....

lynzpower

Hello Kellysmum

really sorry to hear of your situation. Big welcome to us here at us DFW!

First things first,
Have a look at southernscousers first time posters and do us an SOA, we can have a look at it and see if we can help you find some savings to clear this backlog

Are you paying this company a fee, it sounds a bit funny to me. Consoidation looks attractive, but it keeps you in debt longer, and you end up paying more for it most of the time in the long run ( wished I knew that before I consolidated, erm the 4th time )

Sending hugs
Lynz
xxx

Kelly's_Mum

Thanks for your reply. The Credit Card is M&S and they have been very nice to me as we had never been in trouble with them until 3 months ago when husband started to get ill (Cancer) and in comparison to that all the money problems are nothing.

Mostly we can keep our heads above water but I'm tired of only just scrapping by and at the moment it feels like we are starting to drown and I want to stop it before it goes any further.

M&S have offered to change the credit card into a loan but I dont understand what they will do to us in the long term.

I didn't know this forum existed and I will certainly cancel the PPI insurances immediately as the cards are in my name.

Thanks for your help.

CLAPTON

best to provide more detailed information and post an Statement of Affairs

see
http://forums.moneysavingexpert.com/showthread.html?t=107280
for general format

mountainofdebt

you may not have found a kind benefactor but you certainly have found a site that will offer you help and support both with dealing with your debts and support you in oher areas of your life as well.

Oen thing that might be of use to you might be this : http://www.macmillan.org.uk/Get_Involved/Campaigns/Better_Deal/Home.aspx - perhaps you are entitled to benefits because of your husband's illness that you weren't aware of?

As has been said post your SOA and we'll see if we can help you.

james32_uk

Egg did that for me. It's effectively their way of cancelling your card and putting you on a payment plan cause you have a balance that can only get smaller. It wont affect your credit rating in any way as it's simply the same as cancelling a credit card and getting loan. Just make sure the interest on the loan is better than that on your card.

lynzpower

No neccesarily though james, if you default on a loan, you can end up in a bit more hot water than with a card, and also the min payments dont reduce, so it gives you less flexibility.

Also loans keep you in debt longer, and you tend to pay out more interest on them duie to the amount of time you are tied in.

Do an SOA, and lets see whats what

angelatgraceland

It sounds a much better way than debt consolidation. Just keep track of the interest rates and avoid any tempting offers from companies who made promises which are just too good to be true. The last thing you need now, is extra financial problems.