In debt and need help

up-to-my-eyes

Hi everyone.
I'm new to this site and have only just registered.
I am really struggling with debt at the moment and really need some help / advice.
I was recently made redundant which has had a massive impact. I am now back in work but have taken a £8000 pay cut.
My debts are as follows:
loan - £236 monthly payment
loan - £280 monthly payment
6 credit cards totalling £22000 balance with minimum payments currently at £700 per month (approx.)


My salary is now approx. £1500 take home so obviously I am really struggling to make these payments. This month is the first month that I have missed payments.


I don't really see Bankruptcy as an option or an IVA because I want to pay the money back.


Does anybody have any advice on what I should do?


Thanks in advance

Pixie5740

First thing's first, put together a statement of affairs and post it on the thread so that other MSE users can give you some suggestions on where to save some money to through at your debts.

http://www.stoozing.com/calculator/soa.php

It might also be worth contacting a debt charity such as Step Change or Christians Against Poverty. They can discuss your options with you. It could be that a DMP is a better option for you but the debt charities are better placed to tell you than than I am.

twiggy86

What interest rate are your CCs on? I've just started my DFW journey but called Bcard this week and asked if they could reduce my interest rate, which they did without an argument from 19.9% to 6.9% on the current balance for two years. Maybe I could have tried to negotiate a better deal but I was expected a fight so just accepted. There is an article somewhere on main MSE website re which banks are more likely to negotiate.
However first option might be to transfer balances to 0% card if possible - I got declined hence why I reduced my interest rate instead for now as don't want to make lots of applications.
It may also be worth setting up a diary in the diary section of this forum so you can track your journey and everyone is really supportive.
Good luck


Twiggy

PinkPoppies

So sorry to hear of your redundancy, I have been there (many years back) and was forced to take on a much lower paid job at the time too.

Would definitely second Pixie's advice- Step Change or Christians Against Poverty are the right people to speak to.

sourcrates

Agree with above advice, there are a number of organisations that offer free debt advice, stepchange, National Debtline are just two.
Do not be enticed by debt management companies who claim to "write off half your debt" they are only interested in selling you there expensive debt remedy service, avoid like the plague.

BeingDebtFreeStartsHere

Hi and welcome to the site :hello:

I agree with the above posts and would suggest giving StepChange a call. It is daunting at first but they are so understanding and helpful and may advise a Debt Management Plan reducing your monthly payments to your creditors yet still planning to pay back all you owe.

We set up our DMP and it has started this month - I cannot tell you how much of a relief it was. This site has been a godsend - especially the DMP mutual support thread - some knowledgable, helpful and friendly folk on there

Good luck and hope it all works out for you.

BDFSH xq

patman99

Hi and welcome. As you will find out, we are a friendly bunch on here and do not judge people on their debts (or how they got them).

Posting a SoA is a good idea as it not only helps you work out where your money is going, but enables the rest of us to give advice based on facts rather than guess work.

Sazzie23

I would also suggest posting a SOA here and trying the Stepchange on line debt remedy which is free and can be anonymous if you wish. There is no obligation but if you do decide to go forward with their suggestions half the paperwork is done from the debt remedy.

It takes a little time to do properly as you need to get your amounts of debt and bills ready, but you can start now and go back to it without a problem. It saved my life.