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Unsure what to do about my debts
Widget_2011
Posts: 1 Newbie
Hi All
Huge apologies if I've put this in the wrong place, this is my first post and I wasn't sure where it should go. If ots not here then if you could point me in the right direction that would be appreciated.
I could really do with some advice. I have a large amount of unsecured debt, about £20k on credit cards and about £4k left on my car finance (this is secured though). I'm not at all proud that I'm in this position and have been going round in circles with this for the last few years (it was coming down nicely and then becuase of the banking crisis the interest rates shot up and while I pay out over £1100 per month this covers the minimum payments so its hardly making the tiniest of dentst each month). However, its my debt and I have a good job that pays well so while it takes up any spare money I might have I feel its my own fault and while I could then I should pay it.
Anyway my circumstances have recently changed, I have a 3 month old baby who's starting nursery on Monday (so thats £850 a month) and then on Friday I was told my job is at risk of redundancy (I only went back on the Monday!). While its not definate just yet its highly likely so I'm trying to work out what to do as the company would offer the bare minimum in terms of redundancy pay out.
We could just about manage to pay the mortgage and bills on my husbands salary and I would need to be a full time mum until I got something else. However I would need to do something about my debts.
How do card companies react typically if you try to talk to them about lower payments or no payments for a while?
I know there are debt management companies who will sort things for you but you are still repaying the whole amount plus their fee so is there a benefit to that?
I know there are IVA's also where some or all of your debt is written off but how does that affect you in the long term? Our fixed term mortgage expires in Dec 2012 and if I took an IVA then would this mean we couldn't get another mortgage even if I was earning a decent salary in a new job?
Some advice would be great or sign posting to good organisations which have been helpful and equally a heads up on the ones to avoid!
Many thanks
Huge apologies if I've put this in the wrong place, this is my first post and I wasn't sure where it should go. If ots not here then if you could point me in the right direction that would be appreciated.
I could really do with some advice. I have a large amount of unsecured debt, about £20k on credit cards and about £4k left on my car finance (this is secured though). I'm not at all proud that I'm in this position and have been going round in circles with this for the last few years (it was coming down nicely and then becuase of the banking crisis the interest rates shot up and while I pay out over £1100 per month this covers the minimum payments so its hardly making the tiniest of dentst each month). However, its my debt and I have a good job that pays well so while it takes up any spare money I might have I feel its my own fault and while I could then I should pay it.
Anyway my circumstances have recently changed, I have a 3 month old baby who's starting nursery on Monday (so thats £850 a month) and then on Friday I was told my job is at risk of redundancy (I only went back on the Monday!). While its not definate just yet its highly likely so I'm trying to work out what to do as the company would offer the bare minimum in terms of redundancy pay out.
We could just about manage to pay the mortgage and bills on my husbands salary and I would need to be a full time mum until I got something else. However I would need to do something about my debts.
How do card companies react typically if you try to talk to them about lower payments or no payments for a while?
I know there are debt management companies who will sort things for you but you are still repaying the whole amount plus their fee so is there a benefit to that?
I know there are IVA's also where some or all of your debt is written off but how does that affect you in the long term? Our fixed term mortgage expires in Dec 2012 and if I took an IVA then would this mean we couldn't get another mortgage even if I was earning a decent salary in a new job?
Some advice would be great or sign posting to good organisations which have been helpful and equally a heads up on the ones to avoid!
Many thanks
0
Comments
-
Hi and welcome to the forum:)
Please contact one of the charities below, they will offer free and impartial advice.
https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/:pB&SC No. 298
Life`s Tragedy is that we get OLD too soon
and WISE too late!0
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