Left with lots unsecured CC Debt after relationship breakup

DVardysShadow

Hannah_10 wrote: »

According to this here snowball calculator you would be clear of all debt but your mortgage in 23 months. (OR 27 months if you kept another £100 a month back for yourself- for comforts sakes as your SOA is tight in places).

Some mistake here. About 830/month to put towards debt will not clear £23000 in 23 months even with 0% interest. I am expecting an answer more like 33 months, but that is a guess.

Hannah_10

You're right DVardys there must have been a mistake, I probably forgot to fill in a box. Thank you for pointing it out. I've just run it again. This time when I said there was £827 available it says: "It will take you 32 months to pay off these debts if you snowball correctly. During that time, you'll pay £2,493.00 in interest." Or when I said there was £727 available it said "It will take you 37 months to pay off these debts if you snowball correctly. During that time, you'll pay £3,144.00 in interest.

MrsTinks

OP - could you rent out a room in your house? If you get a good house mate then not only is it a good boost to your income but it could also provide some company that might be good for you right now? Just a thought!

katsu

OP - could you sell the car to clear the car loan, and get a cheaper car for now, thus freeing up more money to clear your debts?

Also, don't forget you can reject rate rises as long as you stop spending on the card - see Martin's rate jacking article.

Lastly, can you look at shuffling the balances so you remove debt from your higher cards to the lower ones. It works like this:

Imagine you have £1000 of room left on your cheapest card (Virgin 2) at less than half the interest rate of RBS. What you do is go and buy the weekly shopping of £30 and pay with Virgin2. You then pay the £30 off RBS and pay your monthly payments to both cards as normal. What you have done is effectively shifted the £30 from costing you 23% to 11%. You do this until the Virgin2 is full, to reduce the interest you are paying RBS.

Needs careful management but could be an option if you have the space at a lower rate. See what you/others here think?

RAS

Get a lodger? Tax free as long as the total rent plus costs is less than £370ish per month.

The car is a debt, not a monthly payment.

What is there knocking about the house you can sell?

As katsu says, we need to know the limits on those cards whether you can still spend on them?

Please eat properly, or you will be ill and things will go belly up.