I owe 15k and need some advice..

2muchpressure

Hi, can anyone give me some advice as to what the best options you think are in my situation. I have a loan of about 9k plus I owe 6k in credit cards. I get paid £1800 p/month after tax and I pay about £400 a month for loan + cards. After child maintenance, rent, travelling, I'm left with nothing and very often I'm having to borrow from friends for petrol/train fare to go to work. I keep waking up at night and can't go back to sleep from the stress. What do you think I should do?

wannabee_in_credit

Have a look at the sticky thread on this board about where to start, and post up a SOA. People will be able to advise better if they have more detail on your situation.
Also recommend looking at CCCS website - they have a debt remedy section where you can fill in your details and they can advise what course of action is best for you.

neverbefore2011

What is your credit history like? Do you have late or missed payments? Or have you always managed to meet your commitments?

Poosmate

Use this link to list all your income and outgoings:

http://www.makesenseofcards.com/soacalc.html

All the lovely peeps on here will be able to suggest options you may have open to you.

Also use this fab little toy to find out the most cost effective way to pay off your debts:

http://www.whatsthecost.com/snowball.aspx

Don't be too shocked at the debt free date it gives you - it doesn't take into account being able to pay off lump sums occasionally (i.e. Feb/Mar you don't pay Council Tax (unless you're paying over 12 months or in Scotland) and can use that money to make lump sums). Plus you may get a payrise or be able to shift the debt to lower interest.

Good luck

Poo

2muchpressure

Thanks neverbefore2011, My credit history has been very good until recently, I made a few late payments due to a missunderstaning as I was under impression that the credit card company had set up a standing order but they hadn't.

neverbefore2011

2muchpressure wrote: »

Thanks neverbefore2011, My credit history has been very good until recently, I made a few late payments due to a missunderstaning as I was under impression that the credit card company had set up a standing order but they hadn't.

My own recent experience is that the sooner you start to talk to your creditors, the better.

If you have only upset one credit card company so far, then you are still in with a chance imho

Do yourself a breakdown of income and expenditure, and satisfy yourself about what you can afford to pay, then call your creditors one by one

But bear in mind that as soon as you start talking to them, they are likely to flag you as a poor risk, and your credit rating may suffer

Before you start calling your creditors, call one or two of the debt advice charities. They will give you good advice, and you will get some practice with talking to total strangers about your private affairs

The thing to avoid at all costs is to bury your head in the sand, and wake up one day with debt collectors at your door

2muchpressure

Thanks again neverbefore2011,
so you think I can make deals with the creditors myself? I thought you could only do this through DMP, IVA experts?!!

neverbefore2011

2muchpressure wrote: »

Thanks again neverbefore2011,
so you think I can make deals with the creditors myself? I thought you could only do this through DMP, IVA experts?!!

When you call, you will be speaking to a call centre worker whose job is to tick boxes - the actual outcome is likely to be computer-generated, at least in the early stages

Moneylenders are as much into damage limitation as you are yourself