time to sort this out! advice appreciated 12 July 2015 at 11:48PM in Debt free diaries

wahidul89

hi everyone,

been a member and in debt a while but never really posted. heres my story anyway, i know im an idiot but i finally have a plan to sort it and could do with advice from you guys.

i managed to rack up a fair amount of debt on credit cards and overdraft. it happened over a period of 3/4 years. As it stands now:

overdraft, 1980 £1 daily fee
student overdraft, 1600 - of which 1.540% on 600
credit card - 2100 - 1.575% - currently interest free for another 6 months
credit card 500 - 1.805%
credit card - 1100 - 2.203%
credit card - 750 - 2.528%
credit card - 140 - 2.592%
credit card - 190 - 2.592%
credit card - 1000 - currently interest free for another 6 months
credit card - 3000 - 3.9%

so thats a total of £12360. and with the amount of interest im paying every month i cant even make a dent in the total amount so i finally decided to ask for help from family and have borrowed £9,600 which i will pay in to accounts first thing tomorrow. this will clear my entire balance apart from the interest free accounts.

I have told my family members i will repay them within a year. with my earning of around £1200 take home every month and outgoings i think i can only pay around half. So what i need advice on is how to build my credit score within this year so that the leftover amount i can pay them back with little or no interest as possible.

heres what i think so far, please correct me if im wrong. i will close the 2 accounts which have a £200 credit limit. the remaining cards i will keep and only use occasionally and pay full balance every month so that my available credit ratio remains high and my credit score will improve so in a years time i will have access for good credit.

thanks in advance