Will life always be like this

Nargleblast

The only way consolidation loans can work for you is if you cut up all your credit cards and close the accounts. If you don't do that you will find yourself, despite your good intentions, running up yet more credit card debt and this time having consolidation loan debt on top - ask me how I know!

Yes, like Fyrewyrm and others, I too have been stupid. I have a degree in Stupidity from the University of Stupidity in Stupidtown. Not any more, though, I will be debt free in a few months.

Remortgaging or getting a secured loan could work, but as others have said it is very risky. As soon as you start having repayment problems, your home becomes at risk. I know a trashed credit score can sometimes affect insurance renewals ( I was turned down by one company when looking to change my car insurance), but there are still plenty of insurance companies who will take you on. Also, looking to remortgage or take out further borrowing, first of all, your credit score is already damaged by the sounds of it, and in any case, why the hell would you want to add to your debts?

No, sod the credit score. Sort out some kind of debt repayment plan, Payplan and other organisations can help with this if you don't have the confidence to do it alone, and start getting your life back on track. Taking control will lift your mood and give you the strength you need to see it through.

Sazzie23

I'm with them.....don't remortgage or secure loan, if you can do it on the snowball, give it a try. TTfTm gives amazing advice, as does. Firewym, so believe in them.

If the snowball plan doesn't work for you, then reconsider, .by then it'll be October and your mortgage deal will be up, so it'll be a different game anyway.

If you want to look at something else, (and your head hasn't exploded yet), try the stepchange on-line debt remedy, free and anonymous if you want it to be, it'll help you look at a real budget.
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Oh and ring the plumber to get the boiler fixed, putting it off is just something else you don't need to worry about.

Believe me, I've got degrees in stupid, embarrassed and foolish, although I can honestly say, I've always done it with the best of intentions.

And remember, you really are not alone,

tealady

Nargleblast, glad to meet a fellow graduate. I got a 1st in my degree in stupidity and appear to have build a whole life on the back of it!
OP you have had some great advice, can I add my pennyworth. Just think babysteps. OK occasionally you may fall but just do like a baby does, dont beat yourself up, just pick yourself up and keep going.

dancingfairy

You said you'd received notice the cards were reducing your credit limit and upping the interest? Will your debt still be under the new limit or are they asking you to reduce your level of debt? When does this come into effect, surely they must give you 30 days notice or something? Also I believe that you can write to them and refuse the interest rate rise, close the account and still continue to pay it off at the current rate (I'm not too sure whether this will affect your credit rating but it's worth looking into further).
I'd sort the boiler as you will need hot water and the car (even if it means adding to your debt temporarily) and then take a deep breath, and refocus on getting the debt down.
Sometimes you need to take on a bit more debt, granted it's not ideal but the work is necessary and you are consciously spending the money, rather than just spending it willy nilly. Sometimes these things happen all at once, but it's just a bump in the road.
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sourcrates

I can't believe pay plan are recommending a re-mortgage, or a secured loan, the logic there actually baffles me !!

There main concern seems to be credit rating, rather than actually getting you out of debt, I have to admit(as I have done previously) I too took both the re-mortgage and secured loan route, and of course these actions elevated me straight to the top of the stupid club !!

Having lost the house, it took an IVA to finally solve my debt issues, I would not go down the route they have recommended, it's just too risky an option, if a larger spanner was thrown in the works at some later date, it may be that you could not recover from it.

If I was you, I would look at a more formal solution to the problem, Nation Debtline always seem to be helpful, there's loads of good advise and information on various debt solutions on there website, I would have a good look on there, see if any of the options may suit you, because I think further borrowing would be a big mistake.

immoral_angeluk

Secured loans/remortgages are the work of the devil and more often than not cost people their homes. Payplan know better than to 'advise' one, but it would depend on what other options were available and the pros/cons of each, so I imagine they probably gave it as one of a number of options.

chasingfreedom

Cross fit duck,


Usually when credit card companies increase their APR they have to give you an option to refuse the increase. My husband had the same thing happen, we received a letter saying that his APR was being increased (due to his credit rating being poorer than before I suspect) but we refused the increase (as it detailed we could in the letters) and closed the accounts. Basically they leave the outstanding balance at the current APR and you cannot spend any further and your accounts are essentially closed for further use. At least though you can continue to pay the balances at their current rate and won't have an increased APR on the whole balance.


I would double check those letters if I were you, it may not be as bad as you think. You have a good income and although it may feel like there is no light at the moment (I've been there too) if you get yourself a bit more organised you will feel loads better.


Take back control x