Struggling with Barclaycard Debt

steveo1982

Dobbibill wrote: »

If this is where you struggle then change your set up so that you don't/can't 'have it'. Saving while you have debt is going to be minimal, you should get an emergency fund to resist spending further on credit cards should your washing machine breakdown or other such circumstances. Maybe setting up separate accounts for bills, spending and emergencies will work better for you. As soon as you get paid put the money in the right pots/accounts. Put any cards or access to other pots/accounts away, out of reach. If you are very disciplined, this will give you a workable routine.

There is a thread for saving an emergency fund if you want to join with plenty of others to motivate and encourage you.



This makes me think this is ongoing and has happened several times in various ways. You need to address why/how this is happening. If you only treat the symptom not the cause, it's never going to end. Find out why you keep getting into debt.



Stop applying, you are going to appear desperate to lenders. Accept the credit card deals you've been offered. They may be less than you'd hoped for but getting some of it onto a 0% deal is better than leaving it all where it is. In time, they may up your limit, offer more/different deals or it may evidence stability making you more appealing to future deals/providers.




This debt didn't appear overnight and it isn't going to disappear overnight either. You will need to put in some hard graft to clear it.

Good advice offered already to go over to the DFW forum and post a SOA. They have been in similar situations and will share the best way forward.

Debt consolidation rarely works as the lines of credit don't get closed down, life throws a curve ball in and it's all too tempting/justifiable to use the credit cards again. We find many posters return a year later with double the debt so don't do it.

Everything you have highlighted is spot on mate if I am really honest with myself.

I took out a loan to pay off a car balloon payment as well as bits that were needed for a new house. I then ran up a £2300 credit card bill. Refinanced my loan with RBS to pay off the card but didnt close it which was the biggest mistake I could have made. The card was left to run and it was used again and this time the debt was over twice what it previously was. I know I cant refinance the loan again as I dont believe I have the will power to close the credit card account and as you said if something is thrown at me then it would be too easy to use the card. I just dont want to be paying £100+ a month and half of it being interest :-(

andyfromotley

Hi Stevo,

You have to try and get out of this mindset of 'i'm rubbish with money' as if it is the same as having green eyes. You werent born with any money management skills, its now time for you to learn some. They can be learnt just like any other skill. Its a sign of being a responsible adult. I know this because i have learnt them in my late forties. It can be done.

So from today you have a new job. You are now chief financial officer for Stevo Family Ltd. Now on your past performance you would have been sacked. But we have drawn a line in the sand and are only looking forward.! Your immediate tasks are

1. Reduce your monthly bills to the minimum. Do this by posting an SOA on the DFW forum.
2. Maximise your income. New job, promotion extra job, overtime, sell stuff. Income income income.
3. The most important bit. Set a budget for every month. allocate to every catagory a certain amount (ie groceries, school dinneres etc etc) thats the easy bit .... Then live to that budget. Come hell or high water, if you do not have money in the budget for it then you cannot buy it. Your budget can be on paper, spreadsheet or a fancy budgeting programme like YNAB how you do it doesnt matter. Sticking to it COME WHAT MAY is what matters.
4. Put every spare penny into an emergency fund until you have £1000 pounds. You spend this ONLY on emergemcies. Tip - christmas, car service, holidays etc are NOT emergencies!!
5. When you have the EF in place put every spare penny towards your debt.
6. At the end of the month reviewhow you did, look for savings, adjust catagories as required, set budget for coming month. Rinse and repeat, after a few months you will get pretty good at this.
7. Watch debt reduce and then disappear. watch your savings grow as you now live to your new mantra, if we want something... we save for it and pay cash.

It really is as simple as that. it requires effort and discipline but that what being an adult is sometimes about. You can do this, i know because i have. Couple of last things, do not consolidate. Do not open any new credit. (you are not responsible enough to handle it) Close down your credit when you pay it off. You can live a debt free and credit free life if you want to. Borrowing money to live today is simply stealing from your future.

Good luck with it mate.

Dobbibill

Being honest, is a good place to start Steveo. If you are not honest with yourself it will never get any better.

Now comes the hard, disciplined bit.......put your money where your mouth is so to speak. Actions speak louder than words and it's time to put actions into place.

Andy has given good advice, create and STICK TO a budget.

Half of the payments going on interest is not ideal but the sooner you throw every penny you can at it, the sooner that will reduce.

I wish you all the best.

chuckley

steveo1982 wrote: »

I dont think it is a trigger as such that causes my spending. I was using the card when I ran out of money in my current account. The card was used for food and petrol mostly. Wifes wages dropped down to a quarter when she was on mat leave over the past 3 years so when she didnt have the money to get food or things for the babies then I would end up putting it on the card. I made the mistake of keeping this to myself (Yes I know it was a stupid and naughty thing to do) and when I finally told her the look of disappointment was enough to make me realise my mistakes and realise that things need to change.

I don't think disappointment is the word. she was probably shocked and hurt you'd 'kept up appearances' to her. and she probably feels guilty due to the Mat leave scenario which partly caused this, but this also leaves millions of people in the same or similar boat once they start families.

speak to BC and see what they say, although if you went on a plan with them they would make it on your credit file, but if you're not looking for credit the the next few years, ie, you already have a mortgage, then it may be the best thing.

Also try and flog what you can on ebay to raise some funds. and sit down and go through all expenses with a fine toothed comb throughout the month and see what you can cut down, (phone, internet, e t.c) and cancel any unnecessary subscriptions (magazines). you'll realise just how much you waste!

steveo1982

Thanks again for all the positive comments and help so far. The main points I am picking up is that I need to be disciplined when it comes to money. I need to budget and focus on clearing my debts as quickly as possible. I am working on my SOA and will post this once its ready.