Help needed quickly

kenpoguy

Dear all, I am in a bit of a pickle and getting very worried. Please let me explain. I am self employed and earn around £400 per week. I have amassed debts which now stand as follows. Sainsburys loan £14500 outstanding, Lloyds CC £1400, Barclaycard £4000, Natwest CC £1400. The credit cards are interest free at present and I pay £100 per month on each and £309pm for the loan. I am spending more than I earn with my other outgoings and do not know what to do. My husband cannot afford to contribute any more to my debts. Should I try to get a consolidation loan or perhaps a 0% CC with huge balance to consolidate all debts? Please help, any advice appreciated. Nicki

sourcrates

Hi nicki,
I would not make the situation worse by consolidating the debt, first of all I doubt you would get one with the amount of credit you have outstanding, secondly they rarely are a solution, as the temptation to use the available credit proves to be too great, and you end up in a worse mess than you are now.


In your position, 21k in debt, I would consider either a Debt management plan, or even a more formal solution, possibly IVA.


I would have a look on the National Debt Line website, and/or speak to stepchange, both offer free advice, and can tell you what the best solution would be for you, your options will be limited by been self employed possibly, but they are the best people to talk to about this.

fatbelly

It sounds like you are paying more than the contractual minimum payment on the credit cards. If you just paid the contractual payments on the cards and the loan could you produce a budget that balances?

Try producing a statement of affairs using this calculator and post it here if you wish - we would then be in a position to make constructive comments.