73K debt advise please

John4702

The problem with not remortgageing is the fact my credit cards will take most if not all my disposable income in interest. This is due to the fact i have hit there limits and can not move money about. Thus when promo rates run out, disposable income vanishes. No chance of paying anything back.

Remortgage and getting into the mind set of not spending, means i can get all my debt at sensible APR's, thus i will have money avalible at the end of the month to pay debt off.

Either that or i look at an IVA but i dont think i can get my head around someone else taking all my spare cash each month and not letting me manage it. Yes i have failed in the past but this is my ligh bulb moment.

John4702

Has any one on here ever approached there lenders indepndantly and ask them to freeze interst etc?

John4702

Saffron flowers, i understand what your saying. But with out a remorgage i wont have £600 to pay of debts a month as it will all go on interest.

No offense taken im just trying to convey the situation with credit cards and the fact i cant handle them

saffronflowers

John :hug: I admire you increadibly that you are facing up to this. Stick at it - I for one will help support you in any way I can. Use the budget sheet on here as well and work it all out to the finest detail.

SFx

John4702

Warby

Please think outside the box, given my stupidness i am never likely to cover my outgoings by my incomngs, thus i am forced to top up my current from time to time.

Yes not ideal but the i have extreme stupidness. If I pay off 30K of cards then i have alot of flexibilty.

If in a year i pay of x amount of a loan and have had to top up my current account with a card, well till im a few years into the future i will just need to increase one of thoses loans to compensate.

chevalier

Hi there just a few quick points
1) Is there an opportunity for you to get extra work either at your current job, or elsewhere. Eg if you were say a web designer, you could also get jobs doing this outside of work. Or get a pub job or whatever.
2) For a slower trickle of money have you joined the cashback sites like https://www.quidco.com, https://www.pigsback.com. Whilst they won't boost your income by much every little helps.
3) If you are only using your car at weekends then either it, or the bike should go. It is not only the actual asset money that you would realise, but also the cost of insurance/mot/servicing would go for that vehicle. I would suggest selling the bike, unless your girl friend likes going pillion.
4) If you join up to quidco or similar, you can check that all your utilites are the cheapest (broadband at £25 seems high for example). The by going via quidco for example, you get cash back when you change. Again every little helps

I would suggest that you go on a DMP with either Payplan or CCCS (there are links to their websites at the top of the forum). You will still pay back your debt, but at a rate that is affordable to you. Ie you have enough money to live on/pay utilities etc. They deal with your creditors who generally seem to be more accomodating about freezing interest etc, if they are dealing with one of the two companies above.

Edited to say that £250 for food for two people is also a bit high. If you look on the Old Style forum there are lots of ways to cut this back

Best of luck with sorting this out
chev

warburtonrichard

Hi John
I do think it could be possible to do as you say you want to do and keep everything within the terms of the credit agreements.
Lenders who freeze interest will only do that when you're in default generally.
You need to do a brutal budget for POST your remortgage because if you're still down with very little disposable income, your chances of defaulting now make it so you could lose your home.
Professional advice would be the best way to check your numbers out.
The only way to pay off your debts is to bring in more than you send out.

quantumleap

John,

You seem reluctant to speak with the CCCS or CAB regarding this, which to be honest, I think is a mistake. Whatever decision you make next will most likely shape the rest of your life - so surely it has to be the right one. Therefore would it not be prudent to take on board all of the professional help and advice that is available. Ultimatly having spoken to these people if you still think you way is the best for you then at least you'll have taken everything into consideration.

You asked for advice on here and I think it has been pretty resounding. It is up to you know to decide how to proceed.

John4702

Its not about whats going out. E.G. min payent its about the interest charged per month and how much it costs me to maintain that credit. E.G. Could have debt out goings of 1200 but only 300 is interest thus i am paying of 900, bringing back 300 to keep my current above water is thus possible. And i have already stated a way of doing this with no cost incured.

Thanks for you info though, everything is helping me to form myown plan

Hi John
I do think it could be possible to do as you say you want to do and keep everything within the terms of the credit agreements.
Lenders who freeze interest will only do that when you're in default generally.
You need to do a brutal budget for POST your remortgage because if you're still down with very little disposable income, your chances of defaulting now make it so you could lose your home.
Professional advice would be the best way to check your numbers out.
The only way to pay off your debts is to bring in more than you send out.

John4702

Quantem Leap I am getting to the point where i may speak to these people but i do have a life plan which i am currently studying towards.

It will take me 1.5 years to get there and it may not work out but i have every chance of douberling if not tripling my income in the future. Contracting in the city in london, which i plan to have a crack at once i have finished my studying can if done correclty be very prfitable :-)

Also i cant see how they will offer me anything i havent already considered.

Such as bakruptcy
IVA
Selling up and renting thus releaseing 45K

The only thing that they may be able to help with is freezing interest but i have never defaulted on anything since i was 18, 27 now, so belive it or not i have a very good credit rating