Advice on where to go first with debts?

Spunky_2

Hi everyone,

I know i should post SOA so as you can read through and help as much as possible, but i thought i'd get the ball rolling first by asking advice first then when I have tallied up monthly incomings/outgoings etc. I shall post.

I have run up four credit card bills to the amount of £24,608.
American Express - £5,526
Barclay Card - £6,157
Halifax Classic - £4,696
MBNA Platinum - £8,229

Total - £24, 608

Im self employed, private tenant, co-habitating with girlfriend. As my work is here there and everywhere, I have no routine income on a weekly basis. Like I said I will post SOA very very soon to give you greater picture. I would like to stay self employed to build business, but looks like I will be going back to full time employment.

My question at the moment after reading much on this beloved website is, that what would be the best way to deal with this debt?

The last option would be to go thro the debt crisis way of Citizens Advice and other charities and get an IVA and or declare bankruptcy.

So would I be able to apply for a loan to consolidate the repayments, altho I AM self employed and not a home owner. And if by applying for a loan what if i get kicked back and thus making it harder to apply for a loan again.

Was wanting advice before I call credit card providers first to ask if they would lend me, but cant see that happening when they already wanting the money back in the first place!!

southernscouser

Consolidation can work. But often doesn't.

You need to be in control of your spending before you even consider it. At the moment your lifestyle dictates that your outgoings are greater than your incomings. Consolidation doesn't really change this. OK you might have a smaller monthly payment but it tends to, in the short term, only slow down the rate in which your debt increases, not stop it.

You need to fuly review your whole SOA and make serious changes. It's more than going on a 'debt diet'. It's a lifestyle change.

Also, I may be wrong, but I think it's very difficult to get a non-secured loan above £15,000 now! I know Tesco (RBS) don't offer £25,000 anymore.

Have a look at this nifty little calculator. It will tell you when you can pay your debt off and how much it will cost you depending on your monthly payment. Then compare this to a loan, bearing in mind most loans interest is front loaded.

You also need to consider that you maybe able to get some/all of your debt on low life of balance transfer card(s).