Help with my Debt, how can i get rid of it?

Cheeky_Chick

Please help, I have 2 credit cards, Mint with £2,200 on it, Natwest £4,000 and £1,000 overdraft. I really do however want to move out next year and we are looking to do so about April of next year. I keep trying to pay large payments off the cards and end up just putting money back on them and they keep going up, I have moved to 0% interest, but just seem to keep spending. I know I need to sort it out and need help with whether I take out a loan for the amount owed on the cards spreading it over 3-4 years so that the payments a month I won't struggle with, and cut up all the cards, or if there are any other options out there that I can do? Could I add it all together put it on a credit card and then when it comes to getting a mortgage see if i can add that into the total price, please help, I am starting to get so down and stressed out about it all I just go out and have a spending spree to make me feel better.

Verbatim

Hi there and welcome to dfw,

Congratulations on deciding to sort things out and on moving the cc debt to 0%. Butyou need to get control now before your debt spirals out of control once the interest charges kick in. :eek:

One major suggestion on here is to work out your soa (staement of affairs) detailing all your income and outgoings using the spreadsheet Martin has provided. Remember to work out all the extras we all tend to forget to budget for like xmas and haircuts, coffees and mags etc. Then set a budget and stick to it helped by keeping a spending diary.:beer:

If you take out a loan you're likely to pay more interest over the life of the loan and the danger is that you feel "ok, sorted" and carry on as before and then 2 or more years down the line you have double the debt and look to take out another loan.

If you add the debt to a mortgage you'll be paying interest on it for the life of the mortgage say 25 years which would be hugely expensive and you'll convert unsecured debt to secured debt which could put your future home at risk if you find it hard to meet the payments for any unforeseen reason.

The first thing to do is to take control which is what you're doing coming on here.:T

lynzpower

and also do it do it, chop the cards up, youll never get out of debt when you keep getting in Sounds obvious? took me 10 years to learn!