Credit Card debt

DukeLeith

Hi,

Ive got about £7500 of credit card debt, on different cards.

I'm struggling to pay the minimum amounts at the moment.

Ive tried getting another card to put all the debt onto to get lower interest but with no joy.

Ive tried getting a debt consolidation loan, but no joy.

What are my options? Bankrupt? If I could just find a way of lowering payments. Its my debt and I have no issues.

(I'm in Scotland if that affects things as we have alot of different laws)

Dobbibill

Hi DukeLeith,

Welcome to the forum.

First thing I would advise is to do a SOA, once you details are in black & white it is easier to see what disposable income you have left. You haven't got to post it on here if you don't want to but doing it is cerainly worthwhile.

The other thing I would do is the debt remedy tool on the Stepchange website. Here is the link. This will give you options going forward. You can ring them then if you wanted to speak to someone or seek help from another debt charity. Do NOT pay for a debt management company EVER. There are a number of FREE charities, Stepchange being one of them.

All the best.

DB

grumbler

DukeLeith wrote: »

What are my options? Bankrupt? If I could just find a way of lowering payments. Its my debt and I have no issues.

Even with the current payments it can take decades to pay the debt off: Minimum Repayments

That's why it's impossible to lower the payments without trashing your credit history, that is most likely unavoidable at this stage.

Another MSE article: Debt Problems What to do & where to get help

Debt-Free Wannabe board is better for discussing this.

JakeGreen

Going bankrupt should be your last resort as you're going to struggle to get credit for 6 years afterwards.

Just try to pay the minimum for each card now and get it to them on time.

If you are going to try to shift the debt to a lower interest rate you really need to keep your credit report as clean as possible with no late or missed payment markers.

What's the total amount of money you need each month to keep up with the minimum payments on your £7.5k debt?

See if you can reduce your monthly outgoings, increase your income and maybe sell some possessions to get you through this tough time in your life.

Good luck!

AliceBanned

I am in a similar position. Credit unions are worth a try - they might advise you and also provide a low cost loan if you save a small amount with them.

I have just been approved for a Capital One card - 0% for 6 months. It isn't long but I couldn't get one at 0% for a while and I still have £9k credit card debt which I am paying off slowly at the moment. You might be eligible for lower interest rates now or in the near future so I wouldn't consider bankruptcy or anything drastic. It's very difficult I know but keep trying to pay off a bit more than the minimum and you might get reasonable balance transfers in the future, depending on your credit rating.

I have also contacted StepChange and they seem helpful and it is good to talk it over with someone.

MEM62

Tacking the debt is certainly a good thing and you need to follow the advice already give re looking at your SOA. BUT - it is important that you also understand why you incurred this debt in the first place. Unless the underlying cause is addressed your situation will never change.

pinkjets

I am in a similar position and went to my local Citizens Advice Bureau. So far they have been very helpful and I feel like I am now dealing with my debt and moving forward.
If you contact your local office they will be able to help you. It is free and they have specialist debt advisers who will be able to offer you tailored advice.

Kahlehl

Try not to take out more debt to tackle existing debt. This can lead to increased debt unless you can remain focused on paying it off. In the short term another loan or balance transfer works but it is all to easy to begin spending again. Think very hard before you sign another credit agreement.

chrisw99

Have you looked at what the minimum payments actually comprise of?


Some of them are 1% of the balance, some of them are 3%. So that could make the difference between £20 and £60 minimum payment on a £2000 balance.


You may be better off (in the short term) transferring between your existing cards so that the bulk of your debt is on a 1% minimum payment, especially if you have any promotional rates for transfers (and it's always worth ringing your card supplier to see if they have any transfer offers).

planteria

JakeGreen wrote: »

Going bankrupt should be your last resort as you're going to struggle to get credit for 6 years afterwards.

i agree. tackling the debt head on, as advised above, is certainly the right approach to take. get advice and steadily work through it...working as hard as you possibly can to chip away at and get on top of it.