how can i resolve debt without impacting my credit score? Or is it just impossible?

money_fish_2

Tixy wrote: »

Also just to add that it seems a well thought out first post.

If it is just a short term problem then I guess ideally you just need to maintain the status quo in the interim period. So as long as you can keep on top of the minimum payments then your debts won't be increasing.

Are you able to maintain minimum payments at the moment (without reusing the cards etc)? If not how far short do you fall of being able to?
Perhaps post up a statement of affairs on here for people to see if they can spot some short term changes you can make so you can meet the minimums and stay on top of things until you are earning your fill wages again.

(Sorry I see we cross posted - if you can meet your minimums is that not covering interest at least? so your debt should be remainin static or falling just slightly each month?

Do you know you can opt out of any interest rate rises on the cards?)

thanks, yes i can make the minimums, but because i have the high interest rates, my payments make no difference to paying OFF the debt. I want lower interest rates, so that I can make headway in clearing the debt.

Yes, I heard that you can opt out of interest rate rises. But does that also apply if you are on a 0% deal which was due to end and go to their standard rate anyway? Or is it just if they increase their standard rate?

Tixy

Its just if they increase the standard rate.
If you are part way through a 0% and they write to inform the standard is increasing then you still need to opt out within 60days so that any balance left at the end of the 0% goes to the old lower standard rate.

Its just that you talked about your debt spiralling - which it shouldn't be doing, even if it isn't actually reducing by much.

Whilst lower interest rates would obviously be better I would imagine that just keeping with minimums in the short time, and then attacking the debt once you are earning again would be better than entering a DMP or similar that will have a long term effect on your credit reports?

sonic74

I was in a very similar situation 6 years ago but I had £42000 worth of debt for various reasons. I tried juggling the debts from 1 card to another, taking out loans to consolidate some debts anything I could do to get by another month.
In the end it was all I was thinking about day & night and I became depressed.

I then looked into an IVA and applied. I was accepted and started paying just under £500 per month (half of what I was paying before).

It wasn’t an easy decision to go into an IVA but looking back now was definitely the right decision.

My defaulted accounts are just going over the 6 year period and are starting to drop off my credit reports & I can start to build my life again.

I understand that you do not want your credit history affected any more than it already is but realistically how long will it take for you to pay off your debt through a large loan anyway? It could take 6 years or more.

My suggestion would be bite the bullet, join an IVA plan & just maybe lifting the monthly Burdon may help with any Anxiety you have, I don’t know if it a direct result of your problems but in certainly can not help!

GOOD LOOK!

PS. THIS IS ONLY MY SUGGESTION BEFORE PEOPLE HAVE A GO!

money_fish_2

sonic74 wrote: »

I was in a very similar situation 6 years ago but I had £42000 worth of debt for various reasons. I tried juggling the debts from 1 card to another, taking out loans to consolidate some debts anything I could do to get by another month.
In the end it was all I was thinking about day & night and I became depressed.

I then looked into an IVA and applied. I was accepted and started paying just under £500 per month (half of what I was paying before).

It wasn’t an easy decision to go into an IVA but looking back now was definitely the right decision.

My defaulted accounts are just going over the 6 year period and are starting to drop off my credit reports & I can start to build my life again.

I understand that you do not want your credit history affected any more than it already is but realistically how long will it take for you to pay off your debt through a large loan anyway? It could take 6 years or more.

My suggestion would be bite the bullet, join an IVA plan & just maybe lifting the monthly Burdon may help with any Anxiety you have, I don’t know if it a direct result of your problems but in certainly can not help!

GOOD LOOK!

PS. THIS IS ONLY MY SUGGESTION BEFORE PEOPLE HAVE A GO!

thanks - unfortunately that won't be a good plan for me, as i can pay it off within 2 yrs once back at work, so 6yr impact is just not worth it. debt as a result of depression and lowered income, rather than other way round - but i know it can often happen either way!

mrsb83_2

If you can continue to pay your minimums and your situation will improve soon, then you're actually in quite a good position.

Keep your spending low in the meantime, don't rack up any more debt and have a plan in place for when you go back to 100% salary.

camuk81

Rant can you up your income anywhere or reduce your outgoings.

Try posting a statement of affairs and we might be able to help make some cutbacks in certain areas.

I've made a hash of my score but I'm getting there however I've a lot of later of my file and had a lot of debt however its going down slowly but surely. As it does my score is slowly getting better