Debt Consolidation Problems

Tixy

rolls99 wrote: »

The question is, at the moment, do you think you could handle things for another three or four months?

I wouldn't be waiting a few more months, I'd be seeking advice now about what your options may be.

If you did decide on a DMP or an IVA or even bankruptcy then this takes a couple of months to sort anyway, and the sooner you enter any of those the sooner the pressure will be off you and the family each month, not to mention the sooner it will be over eventually.

After taking advice you might decide none of those options are right for you and decide to carry on as you are in the hope that your circumstances improve somehow.

As gb12345 suggested a few posts ago, you might want to consider posting a full statement of affairs on the DFW section, as people will then be able to give more tailored advice as to what options may be available, and may be able to make suggestions as to whether there are other potential reductions in outgoings etc that you could make in addition to what you have done so far.

Trickyuk

Cycrow wrote: »

im not sure any kind of credit would be possible due to how much you already have.

How long do you have left on the loan ?
as once thats finished, it'll free up the £300 to put towards the credit cards, so once that happens, it'll start help to clear them.

do you own a house/mortgage ?
as if so, bankruptcy might not be the best way to go

I have 19 months left on the loan.

Trickyuk

Thanks for all the help and suggestions. I can survive as things are currently but I am aware i am on the edge of being in real trouble. If a few things go against me then i may have to look at one of the other extreme options.

rolls99

Tixy wrote: »

I wouldn't be waiting a few more months, I'd be seeking advice now about what your options may be.

If you did decide on a DMP or an IVA or even bankruptcy then this takes a couple of months to sort anyway, and the sooner you enter any of those the sooner the pressure will be off you and the family each month, not to mention the sooner it will be over eventually.

After taking advice you might decide none of those options are right for you and decide to carry on as you are in the hope that your circumstances improve somehow.

As gb12345 suggested a few posts ago, you might want to consider posting a full statement of affairs on the DFW section, as people will then be able to give more tailored advice as to what options may be available, and may be able to make suggestions as to whether there are other potential reductions in outgoings etc that you could make in addition to what you have done so far.

I concur with Tixy here.


The credit cards are at very high rates and the problem is as they are so high there's no room for manoeuvre and unfortunately this is the same with your loan, the payment is the payment.

I too would say, as Tixy does - put up a Statement of affairs, or even if you don't post it here, do one anyway so you've got everything in front of you: I was asking if you felt you could handle things for another few months, because, if the answer is 'no', then set the ball rolling now because 'the sooner the better'

rolls99

Trickyuk wrote: »

Thanks for all the help and suggestions. I can survive as things are currently but I am aware i am on the edge of being in real trouble. If a few things go against me then i may have to look at one of the other extreme options.

19 Months is your current target.

Once you reach this point, you can begin to really wire into the Credit cards.

As for the card themselves, if you can, look at the following for each:

Over your last two or three statements, identify the following:

Statement Balance

Interest Charged (per month)

Closing Balance minus your payment

You will then at least have a picture and know what each debt is reducing by.

Anything extra paid will always mean less interest every month.

You will reach a tipping point with the cards which does not seem to be there just yet:

You need to take the interest on one or the other, so it becomes initially a case of paying more to one card than another - this card will then be cleared more quickly which in turn will allow extra to go to the other card.

you won't - based on payments, clear either before your loan ends - but, unlike the loan you will reach a point where you can direct your payments where they'll make the best impact.

The only other tip is - pay the cards as soon as you get the statement - if you hang off until near the due date, you're paying interest for a longer period.

Good luck

Tixy

One thing that might help you tricky is to work out a snowball calculator to see how long it would take to clear your debts in full based on the current balances and monthly repayments of £870(? if that is what you can afford).
You need to know the APRs for all the debts as well for it to work it out correctly.

It will also tell you how much interest you will pay overall if you stick to that repayment plan.

Here is a link to the calculator - http://www.stoozing.com/calculator/snowball-calculator.php

Put all your debts in it e.g. include any overdrafts etc.

Larac

Trickyuk wrote: »

Thanks for all the help and suggestions. I can survive as things are currently but I am aware i am on the edge of being in real trouble. If a few things go against me then i may have to look at one of the other extreme options.

Realistically how much longer can you carry on. When I read your story, it reminds me of myself. I was only paying the minimum and in the end the CC companies kept jacking the interest rates and the harsh reality for me was that nobody wants to give you credit in terms of 0 per cent or consolidation loans. I am on a DMP which is hard but am paying off the debt rather than the interest only. I wish you luck in whatever you decide.