Fed up, plodding on, is this the best way?

skysky69

OK, I need some advice about what people think is the best option, is it better to stay plodding on paying unsecured debts off at rates of 17.9% with just over minimum payments for years or to let it slip into a DMP and pay back with the interest frozen but with then a bad credit rating? I seem to be stuck between the devil and the deep blue sea. I don't have missed payments or defaults or anything as I pay the minimums every month without fail, but it is so depressing when I have been in debt for so long and it hardly comes down every month as the interest rates are in the double figures. Historically we have managed in the past to jiggle them round so they are at least at a lower rate of say 6.9 but they all seem to have put the brakes on and are not offering any balance transfer rates and some are even saying I can't transfer balances at the full rate??? I am feeling quite fed up!

La_escocesa

Hiya,

Is all your debt credit card debt? Maybe this is an instance where a loan to pay off debts would be a good option. I would've thought you could get a loan for a lower rate than 17.9%.

I'd say it's better plodding than going down the DMP route but there are probably people with more knowledge about this than me around.

HTH.

skysky69

Yes it is all crept card debt but for that reason I don't think we would be given a loan for having too much credit

GeorgieFTB

sky

Have you got a detailed budget worked out? If the answer to that is not a euphoric yes then get onto http://www.makesenseofcards.co.uk and fill out the SOA, forgive me if I've missed your postings if you have already done this, and figure out how much you can throw at your debts, then use the snowball calc to work out your DFD.

Min payments will pay off your debts, all be it take until you are senile! If you get defaults then it will narrow your options, at the moment you could try to clear a card then bt on a deal, if they will give it to you, if you don't ask tho...

Sorry I can't be any more help...

Gx

Billy-no-Money

How long have you been paying off these cards, and are you only paying the minimum off all of them?

If you're not snowballing it sounds like this could be the answer for you - if you can currently only afford the minimum payments, choose one card and fix the payment at its current level, so that as the balance reduces the payment stays the same. Slowly but surely you'll build up momentum and see the balance dropping.

When that card's paid off you then add what you were paying to another card and carry on until that's gone, and so on.

Which card you pick is up to you - it's most efficient to choose the one with the highest interest rate, but starting with the smallest balance means you'll pay your first card off sooner. Another possibility is to choose the one with the highest minimum payment (whether because the balance is highest or it's a high % minimum) - this will build breathing space more quickly.

Good luck.

Triggles

A SOA would be a good start. It will show a complete budget and people can offer suggestions. Plus it shows the debts, payments, and interest as well for a better view of where it's all going.