Need advice on £4.3k debt please!

riaface

Hello all,

I really need advice and don't know what to do to solve my debt the best way. I currently have a £2000 overdraft which I'm always at by the end of the month, and a £2300 credit card bill, but the limit's £2200 and they're not very happy with me. I take home £1000 a month after tax, about £500 of which goes on bills. I really would like to somehow consolidate the debt but I hear loans are not always the most efficient way - any ideas?

I'd really appreciate help, and need the money as soon as humanly possible because direct debits are due next week which I doubt I'll be able to pay.

Thanks in advance!

Keeping_Positive

Best thing to do is a SOA http://www.makesenseofcards.com/soacalc.html

It will give you a clearer picture of your postion and if posted on here peeps can give advice. Also loans tend not to work as the credit cards and overdrafts creep back up. I am a prime example of that unfortunately.

Good luck

RAS

In the very short-term what could you sell on amazon?

Check out what is in the cupboards and freezer and do a storecupbaord challenge.

Keeping_Positive

Oh if you cant pay dds cancel them so no charges incurred. Prioritise the rent/mortgage and council tax then utilities.

CCCS have a debt remedy online calculator that is good to use and they can offer great free advice. You may be suitable for a Debt Management Plan (DMP)

savingmummy

Hi and welcome.
A SOA is the first thing to do, ensure it is 100% accurate and includes everything!

Do you have a OH or are you living alone?

You say your incoming is 1k your bills 500 but using a soa shows other outgoings too making it clearer. It is suprising what else is spent out on each month.

What do you spend each month that takes you into a overdraft?

Can you get overtime at work? A 2nd job to help pay off cc debts?

Do you have anything to sell? clothes, shoes, books, dvds, cds, games etc Ebay is always a good little earner!!

Is there anything you can stop for now, or reduce to help out each month ie, mobile, hobbies, shopping, take outs/meals?

Good luck x

HTML200

SOA is a good idea, it's more helpful than you might expect. In short, find ways to reduce your outgoings or increase your income. Simple but true. Covering your debts with more debt is very dangerous, it can be the start of a downward spiral. On the other hand, if you replaced (and I mean *replaced* - cut up the card!) your credit card debt with a bank loan, that might work in your favour thanks to better interest rates. You have to avoid the temptation to a) keep the credit card afterwards and b) take out 'a little bit extra' on the loan as a little reward.

A little bit of cutting back now will save you a world of pain later.

This site is packed with advice on how to save money or increase your income - ebay things, use cashback websites, etc. Don't make the mistake I (and many other people) made and get yourself in more debt.

Good luck.