cant cope with debt....please help

SNAKEY2_2

again thanks for your replies....

fortunately for me I have a very good friend who is going to clear my next store card for me.....

so I will have left the USC store card, the loan and the cc....plus the car etc

however I am going into the bank today just to see if I can take the payment protection off. Then I will ring up the credit card and take the payment protection of that. Now until this is sorted, I shall take no further steps....but was just thinking would it be worth taking quite a big loan to cover both the payments of the HSBC loan and the HSBC credit card. I know its a long shot but alot of loans for around £13000 have a 6%-7% rate, I also know I doubt I will get this. but I am thinking more long term....if I can say have one payment for a loan...then get rid of the usc store card asap...I may be able to cope a little better...again your thoughts/suggestions would be much appreciated....thank you every one

nearlyrich

It's never a good idea to go into more debt to clear existing debt, with the debts you already have you would be lucky (?) to get another loan. This debt is stopping you from living the life you want at 22, do you want to still be in debt when you are 26 or 27? If you get rid of the payment protection it gives you another £80 to throw at your most expensive debt. Don't forget to ask if they can reduce the interest rate on your HSBC loan.

SNAKEY2_2

nearlyrich wrote:

It's never a good idea to go into more debt to clear existing debt, with the debts you already have you would be lucky (?) to get another loan. This debt is stopping you from living the life you want at 22, do you want to still be in debt when you are 26 or 27? If you get rid of the payment protection it gives you another £80 to throw at your most expensive debt. Don't forget to ask if they can reduce the interest rate on your HSBC loan.

the credit card protector is sorted I just have to write to them to have that taken off

the loan...hsbc said they cant withdraw the payment protector or lower the interest...what can I do....please help

thanks

Ged_2

The advice from DFC is good. However if you do go into offering pro rata payments, it is important that you do not cut your living expenses too severely. This kind of arrangement is a long term arrangement and you need to keep a manageable living standard. You should not subject yourself to a lifestyle that is not sustainable on the basis this will get them to accept your offers.

In the case of unsecured debt such as yours, you are in the driving seat as long as you are not seeking further credit. The relationship changes from asking the banks for something, to telling them what they can have.

Contact National Debbtline for expenditure guidelines but remember you still can have a life...including a social one.

Also get a free debbt advice agency like CAB to negotiate the payments. They will not fall from the wild claims of possible legal and other action the collection departments and agencies of banks make every day.

nearlyrich

the loan...hsbc said they cant withdraw the payment protector or lower the interest...what can I do....please help

I can only echo Ged's advice to speak to the CAB, they might be able to renegotiate the deal with HSBC, it's amazing how flexible they can be if they think you might not be able to pay at all. Good news about the Next card, I hope it has been given the chop ?

Is selling the car and buying a less expensive one an option?

What about a part time job?

Financial_Helper

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Debt_Free_Chick

Financial Helper

if your solution is free and above board, please post it so others can benefit. This board is not here for anyone to "ambulance-chase" after those with debt problems.

Could you please comment on what is wrong with the advice offered so far?

DiggingOut

OK, so the Next is gone. USC is obviously the worst you have left.

You can go to CAB, or you can just ask people here to help you through, lots of smart and friendly people around here.

You have £90 / month that was going to Next and USC. You have £30 that you've saved on payment protection. If you throw all of that at USC, and can save even £20-30 of your petrol and use it to pay off USC, you can clear it in 6-7 months, while still making minimum payments on everything else.

The credit card is 1.5% / month, that's over 18% a year, so that's a killer you need to go after ASAP, but USC is undoubtedly even worse, so you need to clear it first. EVERYTHING goes to that until it is gone. Then, everything goes to the credit card. NEVER use the credit card, you start paying rip-off interest the day you spend.

Talk to your parents. Maybe they can give you a 0% loan, or do something to help. They know where you are wasting money -- listen to everything they say, and take it seriously. If they say you can do without something, they are almost certainly right.

If your parents can help you out, that is better than CAB, but if not, CAB is probably best. They don't charge anything, and they are good.

Malestrom

How much is your car worth? Desperate times call for desperate measures i'm afraid and selling the car could be the easiest way out of your mess. If your car is worth around £7000, that would give you enough equity to pay off the credit card, the store card, the friend who paid the Next card for you and still leave enough money to buy a cheap runaround for getting to and from work. This would leave you around £200-300 a month better off, possibly a little more depending on the insurance costs of the cheaper car.

AS DFC noted, you haven't included things like Tax & MOT, board and lodging costs, no shopping cost (personal items), leisure costs, etc. This means that you actually might be even worse off than you think - sorry. Hopefully some of the suggestions that people have made will help. I would also agree that you should at least tell your parents of the situation that you are in.

Good Luck!

Financial_Helper

Hello All
First of all im not here to amblance chase anyone and the advice offered will help some but not all i can help all and you may think im a flash so so but i have helped many people and i understand what it like to be in debt upto your eyeballs and not knowing where to turn, you can all judge for yourself what you think of my way, i now run my own business on the web and have paid my mortgage off and have all my outstanding debts well and truly under control and do not have need for credit card or anything like it so please all judge for yourself.

My system is free but can only done on a 1 to 1 basis, i am prepared to help those who need it most but they need to contact me through this forum if need be, it involves a lot of letter writing and will prevent you from obtaining credit for a while but if you are in a bad postion like a lot of people are then you will not need any more credit anyway, those who are struggling with debt and are at there wits end can reduce there payments by upto 90%, example is a £5000 loan or credit card that is in the hands of a debt collection agency or even a bank/credit card company,
these people would be happy to accept payments of between £10 to £25 per month but you need to get intouch with them and let them know what is going on in your life and what you can and cant afford and even a few untruths can help you a lot,
After a number of letters sent back and forth to your creditors you would be able to start with a temp arrangement of 6 months then once this time is up your postion would be reviewed by the debt collection agency or the bank/credit card company, they may ask you to increase your payment if your financial postion allows you can do so and if not you could carry on paying the amount you where already paying for a further 6 to 12 months, this can be done on any number of debts you have unsecured of course,
this however does take time to do and is something you need to be happy with doing, you may receive many letters from your creditors with regards to your debt, example of some you may receive are letters saying you are in breech of your agreement, threatened with court action or ccjs, attachement of earning orders against you, baliffs coming to your property and so on, I CAN ASSURE YOU THIS WILL NEVER HAPPEN AS LONG AS YOU KEEP IN CONTACT WITH YOUR CREDITOR, the only people who will enforce use of a baliff or attachement of earnings order is the CSA or the COUNCIL, trust me my way gets the results needed to get people out of the hole they are in it does take time as i said but it will help anyone who needs it, if im not welcome here then i will not return and leave you all to your troubles i only want to help, its upto you people out there.

Goodnite

Debt_Free_Chick wrote:

Financial Helper

if your solution is free and above board, please post it so others can benefit. This board is not here for anyone to "ambulance-chase" after those with debt problems.

Could you please comment on what is wrong with the advice offered so far?