No way out....

The.Far.Tall.Knight

Dear Rochdale_Guy, there are some useful bits of advice on here from the others but as one whom has been in a similar position I would like to say this, firstly "the journey of a thousand miles starts with the first step" & another favourite is "to climb Everest you start at the foothills", however analogies and cliche's aside you have evidently made the first step by addressing and facing the issue you currently have. I have to agree with ILW and I know from personal experience it aint gonna be easy, but knuckling down for the long haul, spending nowt for years all bar paying as much as you can as often as you can is the only way to catch a glimpse of the light at the end of this very long tunnel. First tip is to register with either TopCashBack or Quidco (quidco will retain your first £5 of any cash back earned but only as a "one off" so I'd recommend TCB as its free), then register through TCB or quidco for Equifax and/or experian credit expert) you will get unlimited access to your credit report for a month and you will get about £20 cash back into the bargain but don't forget to cancel both before the monthly subscription fee kicks in, check your credit score during your free period and have a wander around the site, experian have a useful tool for checking whom is most likely to lend you at the best rate based on your credit score, but remember what Martin says "Make only the minimum on a standard high street card with £3,000 on it, and it'll take you 41 years to repay and never borrow to try to buy you way out of debt it wont work!!" if it comes to it just stand up and say I’m in trouble, I’ve made a mistake and enough is enough, you don’t have to live like this and by the income you have listed against the outgoings you have you are only sprinting to stand still! I know bonny lad, you will be doing your best on the income you have but prices will continue to rise ie: gas/elec/water/rent/food/fuel etc etc and your salary will probably stay stagnant. Metaphorically speaking the treadmill will get faster and you will either have to sprint faster or you will start to lose ground and at some point you will have to seek help from C.A.B or debt councillors before the CCJ’s come knocking. However try getting as much as you can into one agreement for as low a fee as possible not borrowing anymore. After that if I were in your position I would seek help from your local credit counselling centre there’s one in every town, the local C.A.B will point you in the right direction, making an IVA (individual voluntary arrangement) maybe a good idea but it is not for everyone your debt counsellor will advise you on this, you may think it will harm your credit score and you wont get credit any more but think of it this way (A) you're maxed out and cant afford any more (B) you will never be out of debt unless you do something and in your case a drastic situation calls for drastic measures (C) your credit score will probably be virtually useless at the moment anyhow (D) even if you do go into some sort of arrangement it should only blight your record for 6 years and the way you are going at the moment you will still be in debt in 10 years. Sorry for the doom and gloom but you need to move forward and like I say all you’re doing is sprinting to stand still. Call the national debt helpline on 0808 8080400 its free and impartial, try Consumer Credit Counselling Service on 0800 138 1111 the links are all on this site, after all it is Martin Lewis’s MSE site after all, search for "Debt Problems - What to do & where to get help!" it should be the top link and watch his video. I wish you luck my friend and hope for you that you are debt free soon, or at least in a few years, Remember most lenders will flood you with offers when the sun is shining in your quarter but when the you-know-what hits the fan they don’t wanna know you and those you owe to will drive home that in the beginning they were your friend and borrowing money is easy when you’ve already got it but try borrowing it when you’ve got nowt, miss a payment and they turn into a gargantuan monster that has grown horns and a tail and will swallow you.. MONEY LENDERS ARE THERE TO MAKE MONEY OUT OF YOU THEY AINT YOUR FRIEND

dawyldthing

you might be better off applying for a loan as i think with the looks of it it might be your only way to halt it. Try writing to them to see if they will freeze the interest on the account as at the moment your not even touching the balance so its getting beyond a joke i would say.

The.Far.Tall.Knight

You gotta get rid of the car my friend its your biggest down puller as you have to fund it with debt to run it and its costing you £250 a month which will only get higher as diesel continues to rise + road tax + maintenance for mot etc, etc,,,and it will only depreciate in value if you sold it now you would realise a large lump & you could knock out one of your debts also you cant afford a holiday for at least about three years thus you take back in about £292 a month, I know you may need your car for work but an all zone bus pass in any county is only about £50 - £60 a month and also I know it sounds harsh not having a holiday but as I said in my earlier reply knuckling down for the long haul, spending nowt for years all bar paying as much as you can as often as you can is the only way to catch a glimpse of the light at the end of this very long tunnel:

PS: Avoid any debt help or loan consolidation companies that advertise on the telly or in some newspapers. Their job is to make money out of you, plain and simple. Hmm one of them can afford their own TV channel, I wonder why. While in the short term their plans will make your payments lower, in the long run it'll cost you dear and take you years. Avoid them. Don't touch them. Don’t go near them.

I think this post from the Forum explains it:

"We, my wife and I, are on a seven-year plan with CCCS" (the Consumer Credit Counselling Service, one of Martins suggested agencies) "having recently changed from a commercial debt management company after hearing Martin on Radio 2's Jeremy Vine show. The simple action of swapping to the CCCS has shaved over two years off the length of our plan as the money we were paying the management company now goes to our creditors instead! Of course, that also means a financial saving of nearly eight grand over the term of the original plans 10 year period."

also the ones to avoid can include IVAs and debt wiping companies. While they sound good, they're only for a few people. If either is for you your debt counsellor should suggest it.

dawyldthing

I didn't see the SOA above. If it was me I would get rid of the car (and pay it off your most expensive credit card - as then you'll save on petrol, tax, insurance and the like as mostly a car is something you want rather than something you need. Can you move in back home, or can you share a house with others as this could save on your landline phone, share the council tax, electric, gas, water rates, tv licence and the internet (which will save you loads over the year).

Can you holiday on the cheap if you go on holiday (stay in youth hostels, use national express coaches for travel as they are cheap, look out for deals)

Can you manage with the clothes you have for a while (as if your like me, you have loads and could own a shop - its better than spending!

as for presents and the like - offer your time and make dinner for them etc


If it was me I would go back to basics for everything to get you out of this mess as quickly as possible so you can start afresh

alfred64

Also you must stop spending on the cards. Hard , I know, but I too have been there and found it was the only way to get on top of a crippling debt mountain.

Rochdale_Guy

Hi everyone, thank you so much for the suggestions and good sound advice.

If I go for the loan route to pay off all the cards and just pay back one big (but lower rate % APR) loan, any suggestions as to who'd touch me with a barge pole?

I'd rather go for a fixed low rate APR % "until paid off" credit card (and cut it up as soon as it comes), but again, which company?

I can't go for a loan and try for a new credit card.

This application really is my last chance....

I tried the CCCS route and input all my details, it suggested bankruptcy or getting my creditors to lower / freeze the interest.

I can't see anyone doing that for me, and with the MBNA one, it's getting higher each month despite them taking a huge chunk each month in interest.

Oh boy

Blitz01

With so much credit already available, i doubt you would be able to open another line of credit anyway.
You would have to be on at least £65K a year to get anymore.

Rochdale_Guy

Blitz01 wrote: »

With so much credit already available, i doubt you would be able to open another line of credit anyway.
You would have to be on at least £65K a year to get anymore.

I know it's my fault, and money lenders are there to make money but thats what really annoys me ala MBNA by making 1,000s of people like myself already on the brink with extortionate interest rates even worse off.

When I first got my MBNA card years ago, they gave me a credit limit of £11,000 for heavens sake. It's still that now.

Then they whack up the APR and you're trapped when you genuinely want to rebuild your so called life, I don't live.... I just exist from day to day waiting for the next pay day.

They don't listen to any sob stories, they don't realise how much being offered a fixed low rate % APR deal would make to someone like myself.

They just wanna make money

FYI - I paid £2 for my statutory credit report (Experian) and nothing bad was on it. I don't think I've ever missed a payment (all Direct Debits with me). It must just be because I basically owe what I earn, and I'm not entitled to any benefits either, just single person council tax discount = 25%

izools

So default and start repaying it interest free.

Flippancy aside, I don't see your statement of affairs being realistic. Have you actually totalled up everything on a month's bank statement to see what you're actually spending? #40 a month on groceries would be impossible.

As far as I see it you have two options:

Get rid of the car

Enter into an IVA

You are not going to be approved for further credit considering your total debt outweighs your annual salary, let alone the limits you currently have.

Rochdale_Guy

Default? I'm already deep enough in doody