🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

How to service credit cards - in debt?

Options
hi
my brother has a credit card problem - quite a big one.:(

he owes approx £15000 on 10 credit cards

he needs over £300 just to service their minimum payments each month. he is unemployed, on minimum income and mildly depressed.

he can clear the debt when his house sells, but in the current climate that could be months away.

what should he do next?

thanks
molly

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Options
    Hi Molly.

    Suggest he talks to one of the debt charities. As he's on benefits he obviously won't be able to keep up with repayments so he'll need to offer them all just token payments (usually £1 per month each for someone on benefits).
    IMPORTANT - Where to seek professional impartial advice about your debts. They can help and advise him and will provide templates of letters he can send out to creditors etc.

    However if he has a credit card from the bank he has his current account with then suggest he sets up a new bank account with a bank he doesn't owe any money to and change any income/benefits so it is paid in there before he tells the bans about his financial problems -otherwise the bank might offset any money / benefits in his current account to put towards the card arrears.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • molly22
    molly22 Posts: 182 Forumite
    First Anniversary Combo Breaker First Post
    Options
    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1
    Monthly Income Details

    Monthly income after tax................ 260
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 260

    Monthly Expense Details

    Mortgage................................ 9
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 10
    Gas..................................... 10
    Oil..................................... 0
    Water rates............................. 14
    Telephone (land line)................... 0
    Mobile phone............................ 3
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 20
    Clothing................................ 0
    Petrol/diesel........................... 60
    Road tax................................ 11
    Car Insurance........................... 20
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 3
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 192


    Assets

    Cash.................................... 0
    House value (Gross)..................... 65000
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 67000


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 25000....(9)........1.5
    Total secured & HP debts...... 25000.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    c cards........................15000.....350.......20
    Total unsecured debts..........15000.....350.......-


    Monthly Budget Summary

    Total monthly income.................... 260
    Expenses (including HP & secured debts). 192
    Available for debt repayments........... 68
    Monthly UNsecured debt repayments....... 350
    Amount short for making debt repayments. -282

    Personal Balance Sheet Summary
    Total assets (things you own)........... 67,000
    Total HP & Secured debt................. -25,000
    Total Unsecured debt.................... -15,000
    Net Assets.............................. 27,000

    Created using the SOA calculator at www.makesenseofcards.com.
    Reproduced on Moneysavingexpert with permission, using IE browser.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards