Need help and motivation

Hannah_10

Well it's a choice that is yours to make, look at it as options.

Option 1: You continue as you are and your credit rating looks ok but the amount you actually owe is probably growing faster than you can repay it?

Option 2: You say argh enough is enough and so what if my credit rating plummets, this whole thing is much too much for me, I'll just live without any credit cards in future for a few years (a bad credit reference can only last 6 years tops).

Right now I don't think you have enough information, I think it hinges on if your debt is growing or shrinking. The snowball calculator will tell us, would you mind doing that too please? It's here. http://www.makesenseofcards.com/snowcalc.html The better we understand the better we can advise.

bargainbetty

Have Goldfish absolutely rejected a balance transfer deal for you? As the smallest debt, you could clear it in two months and bring some of your other debts over, thus reducing the APRs. I'd give them another call, and ask what they might be willing to do. Probably not a 0%, but low-life-of-balance would be good.

To be honest, if you threw every spare penny at your debts for six months, it would clear an additonal £3k, which would clear the second highest APR card. However, you have to go back to paying your way soon, and it might be sensible to go after the DMP now, get the six years started and work on getting all of those interest rates frozen.

If your man decides to put some of the money you give him into a pot that you could use later to offer a full and final settlement, that is his choice.

In the meantime, I think you need to work out your household costs, and see what you will be paying in six months. If that qualitifes you for the DMP, then you might want to think about going for it.

Failing that, at least call the high interest card providers and ask them to freeze the interest for six months, or cancel the account so they can't up the interest any further.

I wish you lots of luck!

NorthernLas

If you actually paid half of the bills and plugged that information into debt remedy (it is the on-line calculator thing for CCCS) it would give you a better picture as to where you would be if you had to pay your way. Since this will happen in time, if you know what it will look like then you can plan what to do about it now.

If you don't have £500 left at the end of the month, can you start a spending diary to you can see how you spend your cash?

gfplux

Hi Beccie,
I have to say (as a man) your boyfriend might get tired very soon of supporting you.
Does he know everything about your debts or have you held something back?

Kepp

Thanks all again for the replies.

I have just done the snowball - this gives me a debt free date of Jun 2012 (although that is based on me not paying rent, so will need to adjust when that changes)

That's told me to priorities payments to MBNA for the next ten months so I guess I'll begin there and then adjust as maybe when I can start transferring balances agan then that will change.

Was that all the info needed? Wasn't sure I should post the whole thing as it was quite long!

Kepp

gfplux wrote: »

Hi Beccie,
I have to say (as a man) your boyfriend might get tired very soon of supporting you.
Does he know everything about your debts or have you held something back?

Believe me, I thought the same!

It is me who has set a maximum of six months of carrying on like this as I don't feel it's fair and I do feel guilty about it.

He is fully aware of the level of my debts though as Ihave been totally honest. (thought that would be better!)

Kepp

Hannah_10 wrote: »

Option 2: You say argh enough is enough and so what if my credit rating plummets, this whole thing is much too much for me, I'll just live without any credit cards in future for a few years (a bad credit reference can only last 6 years tops).

.

The one thing I worry about is this (not sure if it matters or not) we move fairly reguarly - every six months to a year - as renting in our area is not very stable. I would worry about then failing the credit checks with the agencies and not be allowed to rent from them.

As for not getting anymore credit cards, I don't want them!

Kepp

bargainbetty wrote: »

Have Goldfish absolutely rejected a balance transfer deal for you? As the smallest debt, you could clear it in two months and bring some of your other debts over, thus reducing the APRs. I'd give them another call, and ask what they might be willing to do. Probably not a 0%, but low-life-of-balance would be good.

The balance transfer was rejected temporarily while my credit rating was so bad.

They were actually quite helpful and suggested waiting for 3 paychecks and then calling back to see if it had changed and then I could go ahead.

I have looked at my amounts and APRs and come up with the following plan:

Egg £3,700
MBNA £7,038
Goldfish £335
Lloyds Loan £7222
Lloyds cc £2,792
Overdraft 1 £1000
Overdraft 2 £500
Mum £1,450

I thought that for now I will follow what the snowball calc has said and pay MBNA as a priority as they have the highest APR.

I'll call my credit cards each month and once they say that I can transfer my balance I'll do the following:

Clear the Goldfish card so no debt is stuck behind the transfer
Transfer the Lloyds card to the Goldfish as the limit on the Goldfish will just allow for this amount.
Transfer the MBNA to the Lloyds (they have said they will give me 0% for 6 months when my credit rating is back)
Continue to pay Egg and the loan until I can get any other transfer options.
Make sure I continue to pay my Mum the £50 a month agreed amount.
Ignore the overdrafts and deal with those last.

Pretty sure there will be holes in my theory so please point them out!

Thanks everyone

clang_uk

Try paying as much as you can off your debt as quickly as possible. Look at paying the higher apr first. Can you move CC b/Card offer a 6% card which is very good if you cant get a 0%. You are lucky to have a supportive boyfriend and he may get tired of supporting you. So show him what you are paying off and how well you have done each month. This will keep him from thinking you're not taking it seriously. As a man the worst thing you can do is start talking about expensive shoes or wanting pretty (expensive) things!!!

Kepp

thanks clang_uk, not sure my credit rating would allow me to apply for another card at the moment which is why I had been looking at transferring round the ones I've already got but def worth bearing in mind for maybe a few months time.

I definitely do realise how lucky I am and I won't forget that. I have been very honest about amounts, APRs, and how much I am paying off, I even tell him when I have paid an extra tenner off something.

He does see the number of hours I work and knows that I rarely go out or buy anything new as quite rightly he would be very annoyed if I did!

Luckily I've never been a shoes type of girl!