Problem with credit

rosiedee

Hi, Thi is my first time and am pretty nervous, I physically feel sick.
I'm on a limited income and have two credit cards and two loans. Both the loans end July 2008 and one of the credit cards is life of balance so is under control. The other card has an outstanding balance of £12000, until this month is was 3.9% but will now revert to 19.9%. I had transferred other outstanding balances to it intending to extend one of the loans to pay it off but have been refused a further loan. I know I won't be able to afford the repayments and am my wits end what to do, can anyone give me any advice?

hypno06

Hi and welcome

First of all, grab a pad of paper and a pen, make a cup of tea or coffee and sit down and brainstorm. Write down everything you can think of that you spend money on -whether it is everyday, or once a year - even if it is just a few pence on a bar of choccy or whatever.

Then armed with that info, have a go at preparing a statement of affairs (details in southernscouser's "first timers" thread above) and post it on here. Then we will be able to give you some advice where we can!

Good luck and keep posting.

webitha

i agree with hypno above get your SOA up and let the wonderful people here work their magic

oh and welcome by the way

immoral_angeluk

IT's easier said than done but try to relax.. there IS a way out of it although it may not seem like it at the moment. Do you know what the repayments are going to be? Have you asked if they'll lower the rate at all? What is the limit and balance on your other credit card and are you able to transfer some of the other balance onto it? A loan isn't necessarily the right way to sort it out so like others have said post up your SOA and we can have a look at cutting things down so you can afford the new payments.

Hermione54

It seems as if you keep borrowing to pay off existing loans. This is called 'consolidation' and rarely works because you're just shifting debt around. You have to address the fundamental reasons why your expenditure exceeds your income and somehow learn to live within your means. Hence all the advice to post a statement of affairs so that the people here, most of whom are or have been in your position, can help. Don't panic and good luck.

rosiedee

Thanks for the advice. I have spoken to the credit card company but weren't very helpful.
OK, time to come completely clean. Our finances are in a real mess but my husband doesn't know anything about it. The debts I mentioned earlier are only the half of it. I tend to deal with our financial affairs and have been robbing Peter to pay Paul and have finally backed us into a corner. So far me haven't missed any payments but this credit card thing is going to probably push us over the edge. The big problem is I'm terrified to tell my husband what a mess I've got us into, he doesn't react well to sitituations and I'm afraid he'll go off and leave me which would be just about the final straw. I really am at my wits end.

Shineyhappy

Try not to panic.

As the others have said the first thing to do is post a statment of affairs detailing all your debts, who they are to, how much owed at what apr and how much a minimum payment is.

Then what your income is and outgoings, breaking everything down on a monthly basis, hopefully we can make some suggestions

sammy115

Hi Rosie

Try not to panic. My OH doesn't know about my debts either. You really do need to sit down with a pen and paper and post your SOA on here sharpish.

It may look a bit scary to start with. You also need to list ALL your debts. No !!!!!!!!! and post APR's alongside. We can only then really start to look at what you should do.

!!!!!!!!!!{hugs}}}}}}}}}

philwiththepill

My advice is very simple tell your husband soon as possible.

Sure he might get upset, starting shouting, he may even leave you.

But at least you have come clean even at this late stage and there is no substitute for honesty.

tomterm8

Right. I would suggest contacting the national debt line or PayPlan or CCCS (the numbers are on the back of your credit statement).

When did you open the credit card?

What are your total loans, with APRS, and what level is your income.

rosiedee

Thanks for the advice. I know I'm going to face up to my husband sooner or later but I want to try and get a plan in place first because if I just blurt it out he won't be able to deal with it, he has absolutely no head for figures. I feel terrible as I know I have betrayed his trust in me, I only hope he can forgive me. Am going to sit down and try and do a SOA of all our finances.