I am stupid! Please help! x

poorbird73

HI Everyone.....I need help!!!

I am aprox £5000 in debt and its now becomming a big worry. I admit I have gone mad with the credit cards and been very stupid. My plan was to keep transfering credit cards with 0% balance transfer but my credit score has dropped from apx 600 to 250 for no apparant reason and I am now refused credit from almost everywhere ( I have been offered a loan for £4,500 paying back in total 6,500 plus they want a £49 fee for the paperwork......is this a good deal??? It does sound tepmpting as the credit cards interest is crazy....24% so any advice would be good? I will briefly outline my debts: (oh dear...sob!!!)

Halifax credit card.owe 2,100 now paying back with 24% interest
M&S owe 1,400 , think interest rate is about 4%
Barclays owe £800, only charge me £10 a month interest
Various catalogues owe aprox £500 at various interest rates!!!

My income is apx £600 a month and after bills only leaves me about £200 left:mad:

Any advice would be much appreciated, does anyone know who will accept me for a decent loan or balance transfer as I cant see me ever coping with the credit card interest rates??? I am 33 live with parents and work part time and if all else fails does anyone know a very rich man with a bad cough!!!???


XXXXXXXXXXXx Sara xXxXXXXXXXXXXXXXX

davetrousers

Borrowing more to "help" with a debt is like F*cking for virginity or bombing for peace!

robnye

you need to stop spending on the cards.
assess what you are paying out for and see where you can cut back.

whilst in the long term a loan might be the ideal situation, at the moment, you are living way beyond your means....... whats to say you take out hte loan then carry on with spending on the cards.......!

are you able to work full time?
or get a second job?
do you have things to sell - on ebay or car boots

your credit score has almost certainly dropped due to living in someone elses home........!

trying-very-trying

You've come to the right place for help. Someone will be along shortly with lots of good advice. You should really post your statement of affairs. You'll find it as a sticky at the start of this forum. The advice on this site has helped me loads. Keep your chin up, you will get through it.

poorbird73

Thanks but I have cut all my cards up its just the debt I need to deal with now!

jo1972

Hi and welcome :wave:

We've pretty much all been stupid at some point that's why we're on here!!

Someone will be along soon to help you, you might need to take a look at the sticky post at the top of the board for newbies, it will tell you how to post your statement of affairs so people can see exactly what's coming and going out. This will enable people to help you.

You need to cut the cards up now and stop spending on them. Do not get a loan to pay your debts cos you will end up with more debt which is what you don't need.

Good luck, look forward to seeing how you get on

Jo.x

shelovestobuystuff

You are working part-time,living with your parents,earning just £600 a month and are aged 33.
Have you heard of the governments minimum income guarantee through the tax credits system?Its not just for people with children!!!:cool:
If you are single or in a partnership but with no kids you may still be entitled to something.If you are over 25,which you are and working 16 hours or more a week you can apply for tax credits.:D Under 25,s can apply only if they are disabled too and already qualify for some sort of disability payment.
Get online now and do a search for the tax credits website,there is also a site called "entitled to" or something similar so do a search for that too.

I would say you are quite sensible with your money really and do not have high debts for your age.You were savvy enough to try for the 0% deals so I am sure you will get it sorted again.
I think the main thing is to increase the income.Make sure you are getting what you are entitled to first of all.

misspoppy

HI

you need to give us a full statement of affairs, see the sticky for first time posters, detailing all you out goings and income.

You do need to look at a full time job as it appears your low income is your main problem, is there a reason why you can't work full time or get a 2nd job?

shelovestobuystuff

As far as your credit cards are concerned,use the ones you have to move the debt around to the best deals.Check what new deals they have for balance transfers at the moment.
You say you have been managing okay with the cards you have so if you have not made a late payment you may still be able to get a special low rate with your existing credit cards.
Don,t apply for anything else if you know your credit rating is bad at the moment,more applications for credit will just make it worse.
No loans,trust me,I have been there,it doesn,t help!!!

Idiophreak

shelovestobuystuff wrote: »

If you are over 25,which you are and working 16 hours or more a week you can apply for tax credits.:D

A slight aside, I know, but are you sure?
This is from the IR website:

"Working Tax Credit is for people who are employed or self-employed (either on their own or in a partnership), who

• usually work 16 hours or more a week
• are paid for that work, and
• expect to work for at least 4 weeks

and who are

• aged 16 or over and responsible for at least one child, or
• aged 16 or over and disabled, or
• aged 25 or over and usually work at least 30 hours a week "

Surely over 25s need to work 30 hours+ then?

dancingfairy

Hi. Don't worry - lots of people have been stupid with money - at least you have realised your mistake and want to sort it out.

If you pop up an SOA (see Southern Scousers sticky for first time posters) we can see where you can cut back.

As said above- loans are not generally a good idea to pay debts back and people seem to end up in more trouble - however well intentioned they may be.

Was the money spent on silly things or was it just on general household living expenses? - you need to address why you got into debt to make sure you don't get into anymore.

A spending diary might help as well - you might be able to identify ways to save money - ie that magazine/coffee/coke/pint/sandwiches at work/cigarette/magazine/nail varnish etc soon adds up - you might find that you could save some money here as it's easy to spend money without noticing.

Good Luck. Keep Posting and I'm sure we can sort you out.