Help needed to get out of credit card dept

iammumtoone

Hi all

This is the first time I have posted on here, I am hoping someone might have some advise for me

Like many others I have credit card depts. I am paying the minimum amounts and can afford to do this. However by paying just the minimum it will never get paid off as I am only just covering the interest. I really want to clear this, I have read up and all the advise is to either transfer it to an interest free card or to get a bank loan. Great these ideas would be ideal for me - but I can't get either as I do not have a job so they wont allow them to me (my credit score is good I have never missed a payment or not paid a bill in my life)

There is help available for people who struggle to pay the minimum there is a scheme that means the interest is frozen so the card does get paid off but you have to prove you can't pay the minimum so this is not suitable for me either.

It just seems I am stuck I really want to sort this out but I can't as I don't qualify for hardship help but don't qualify for help with loans/ interest free cards either. It is very frustrating as like I said I can afford to pay an amount each month and if this was being paid towards a load or an interest free card it would eventually be clear, but as it is I will be paying this amount for ever just covering the interest and never clearing the dept.

I have stopped using the card so no more money is going onto it. Please don't berate me for not having a job I am a single mum who gave up work to look after my child when my ex was with me as he earnt enough to cover us (we never claimed any benefits) we took that decision for the benefit of our child. Now we have split I want to sort myself out (including my depts) and am trying all I can to find work.

Thanks

timetogrowup89

Have you worked out your income and expenditure? So that you know how much you have to make any overpayments?

I have just done mine (a few weeks ago) and it was scary, but at least it ensure you know exactly where you stand with everything?

The_Boss

iammumtoone wrote: »

Hi all

This is the first time I have posted on here, I am hoping someone might have some advise for me

Like many others I have credit card depts. I am paying the minimum amounts and can afford to do this. However by paying just the minimum it will never get paid off as I am only just covering the interest. I really want to clear this, I have read up and all the advise is to either transfer it to an interest free card or to get a bank loan. Great these ideas would be ideal for me - but I can't get either as I do not have a job so they wont allow them to me (my credit score is good I have never missed a payment or not paid a bill in my life)

There is help available for people who struggle to pay the minimum there is a scheme that means the interest is frozen so the card does get paid off but you have to prove you can't pay the minimum so this is not suitable for me either.

It just seems I am stuck I really want to sort this out but I can't as I don't qualify for hardship help but don't qualify for help with loans/ interest free cards either. It is very frustrating as like I said I can afford to pay an amount each month and if this was being paid towards a load or an interest free card it would eventually be clear, but as it is I will be paying this amount for ever just covering the interest and never clearing the dept.

I have stopped using the card so no more money is going onto it. Please don't berate me for not having a job I am a single mum who gave up work to look after my child when my ex was with me as he earnt enough to cover us (we never claimed any benefits) we took that decision for the benefit of our child. Now we have split I want to sort myself out (including my depts) and am trying all I can to find work.

Thanks

Just a quick pointer - if you do not have a job and little source of income then you definitely do not have a good credit score. Post up an SOA and people will be able to advise.

Oh, and debt and dept are not the same thing

iammumtoone

Thanks to both of you

Yes I have worked out my income/expenditure and there is not much left spare but I am determined to put something towards the dept (thanks The Boss spelling and grammar are definitely not my strong points) even if it is only a few quid a month.

You are right I don't suppose I do have a good score with no job and low income I didn't look at it from that angle. I have never been in this situation I went from having a good job to being a SHAM with a partner who supported us both (yes I was lucky but it was his choice as well). If I knew what I do now then giving up my job was the worst thing I ever did ):

what is an SOA?

Thanks

The_Boss

iammumtoone wrote: »

Thanks to both of you

Yes I have worked out my income/expenditure and there is not much left spare but I am determined to put something towards the dept (thanks The Boss spelling and grammar are definitely not my strong points) even if it is only a few quid a month.

You are right I don't suppose I do have a good score with no job and low income I didn't look at it from that angle. I have never been in this situation I went from having a good job to being a SHAM with a partner who supported us both (yes I was lucky but it was his choice as well). If I knew what I do now then giving up my job was the worst thing I ever did ):

what is an SOA?

Thanks

It is a statement of affairs - listing all your financials going in and out. There's a spreadsheet template somewhere that will do the auto calculations.

Do not apply for any credit in the meantime.

Thrifty_Pixie

iammumtoone wrote: »

Thanks to both of you

Yes I have worked out my income/expenditure and there is not much left spare but I am determined to put something towards the dept (thanks The Boss spelling and grammar are definitely not my strong points) even if it is only a few quid a month.

You are right I don't suppose I do have a good score with no job and low income I didn't look at it from that angle. I have never been in this situation I went from having a good job to being a SHAM with a partner who supported us both (yes I was lucky but it was his choice as well). If I knew what I do now then giving up my job was the worst thing I ever did ):

what is an SOA?

Thanks

as The Boss said - it's DEBT not dept

also i'm hoping you meant SAHM not SHAM?

anyhoo. i doubt very much if you read loads of advice to take out bank loans to cover credit card debt, as that's consolidation and many MANY people have been bitten by that here. it's really not a good idea.

instead, fill out one of these Statement of Affairs forms here: http://www.stoozing.com/msoc/soacalc.php

and click the button at the bottom to format it for MSE and post it up here so we can all take a look. the most reliable ways to cut debt is to either up your income or cut back your expenditure...or both if you can.

also, how old is your child?

iammumtoone

oh gosh sorry I must write 50 lines of debt and SAHM! I seem to have gone from having a job to now as it seems not being able to string a sentence together!

I thought that was the general advise to get out of debt to consolidate (I am not talking about going to those companies you see advertised on TV but a bank or interest free credit card, and yes I know that if you take the credit card option you must not add anymore to the loan) I can't see how a transfer of debt to a loan with a lower interest rate can be a bad thing? As the money I am currently paying which is being put against the interest would be going to pay more of debt. I will listen to those more knowledgeable then me and this option is irrelevant in my case at present as I am unable to do this but I would be interested to know why it is seen as a bad idea as I once I get a job I was still hoping to be able to do this.

My child is 5. I will look at the link you supplied and thank you for taking your time to reply.

heartbreak_star

The problem is that once you've paid off the cards with the loan, you might end up using them again then you end up back where you started but with twice the debt!

Also, even when you get a job - if your debt equals half your salary, you won't get a loan.

Get an SOA up and we'll see if we can help

HBS x

The_Boss

iammumtoone wrote: »

oh gosh sorry I must write 50 lines of debt and SAHM! I seem to have gone from having a job to now as it seems not being able to string a sentence together!

I thought that was the general advise to get out of debt to consolidate (I am not talking about going to those companies you see advertised on TV but a bank or interest free credit card, and yes I know that if you take the credit card option you must not add anymore to the loan) I can't see how a transfer of debt to a loan with a lower interest rate can be a bad thing? As the money I am currently paying which is being put against the interest would be going to pay more of debt. I will listen to those more knowledgeable then me and this option is irrelevant in my case at present as I am unable to do this but I would be interested to know why it is seen as a bad idea as I once I get a job I was still hoping to be able to do this.

My child is 5. I will look at the link you supplied and thank you for taking your time to reply.

The problem is that lenders will not credit score you well enough to be accepted for a suitable product because your income will be so low.

moohound

iammumtoone wrote: »

oh gosh sorry I must write 50 lines of debt and SAHM! I seem to have gone from having a job to now as it seems not being able to string a sentence together!

Don't worry about it, the pedantic grammarians here only wish to instruct not berate.

I thought that was the general advise to get out of debt to consolidate (I am not talking about going to those companies you see advertised on TV but a bank or interest free credit card, and yes I know that if you take the credit card option you must not add anymore to the loan) I can't see how a transfer of debt to a loan with a lower interest rate can be a bad thing?As the money I am currently paying which is being put against the interest would be going to pay more of debt. I will listen to those more knowledgeable then me and this option is irrelevant in my case at present as I am unable to do this but I would be interested to know why it is seen as a bad idea as I once I get a job I was still hoping to be able to do this.

My child is 5. I will look at the link you supplied and thank you for taking your time to reply.

A cycle of consolidation got me into my awful mess, see signature, so look at other options please.

iammumtoone

Thank you HBS that makes sense I can see how easy it would be to start again with the card if I transferred the loan at least with keeping it on the card it will keep me focused on paying it off.