Really need help to cope with debt - please

DVardysShadow

TheCrimsonAvenger wrote: »

Thanks for your help here is my SOA

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I have an overdraft of £400 which I use each month which swallows up my funds.

Your expenditure record must be wrong by £600/month. As already suggested, you must start a spending diary to discover the truth about what you do with your money. An overdraft of £400 can be quite expensive. Your first debt management move must be to cut the overdraft to nil all through the month and remain that way. That should free up some charges to put against your cards along with whatever money leaks you can plug up.

TheCrimsonAvenger

Just gone through my spending for the week after my last payday - £200 on stuff I didn't really need and could have saved on. Think my main issue is food shopping and spending on DVD box sets on payday.

Percy1983

I have a weekness for DVD/Blu-ray too, I got a cineworld unlimited card for £13.50 a month and watch all the films I want now, since I see most films at the cinema I now wait for DVD's to get to £2.99 or £5.99 for blu-ray.

TheCrimsonAvenger

I was told by our firm's EAP that no credit card firm will contemplate reducing interest/charges due to my income (42k) does that sound right or is it worth a go?

Percy1983

Well all you have to lose is a phone call, I phone the Halifax recently all I said is I wasn't happy about the APR and the nice bloke called Pete said the most he could reduce it by was 4% in 6 months to which he did, he also advised that if I call again in 6 months there I good chance I will get another 4% reduction.

Of course if they don't budge there is a chance you can get a 0% card and transfer some of the balance away. Both Virgin and Egg have long 0% deals at the minute.

TheCrimsonAvenger

Thanks, not sure with my credit rating I'll get an 0% card though.

Percy1983

Yet again you can try, I would say first call exists credit cards and try and get a rate reduction and if that fails then apply for one credit card. If you get rejected don't apply for anymore as it won't do your credit file any good.

As mentioned above if you get you spending under control you are most fo the way there, reducing interest rates will just help you clear debts faster.