Fighting a losing battle

Golddust_2

I have a lot of credit card debt 24k. Currently paying out in excess of 800 per month, have a good salary and debt is going down very slowly but I've nothing left every month and wasting loads on interest. I never miss payments. I've applied for a consolidation loan but my ability to pay is measured against my existing debt which is what I'm trying to get rid of with the loan. A loan would reduce my outgoings by over 500 per month but I'm fighting a losing battle. Any advice would be appreciated.
I have the unfortunate money hangover of getting into debt as a student to get through and bought my house at the height of the market so in negative equity that and my partners divorce has made debt a necessity. Just trying to get on in life now and feel like hemoraging money thats a waste.

YorkshireBoy

How has the negative equity made debt a necessity for you?

3 ways out of debt:

Earn more
Spend less
Restructure the debt

Presumably you've already done all you can on the first two, so that's why you're looking at restructuring.

So, what's your:

Income?
No of credit cards?
Total available credit?
Available credit, balance, and APR per card?

[Deleted User]

You won't get a consolidation loan.

Visit the DFW boards for advice on cutting costs and repaying faster.

Pixie5740

Golddust wrote: »

I have a lot of credit card debt 24k. Currently paying out in excess of 800 per month, have a good salary and debt is going down very slowly but I've nothing left every month and wasting loads on interest. I never miss payments. I've applied for a consolidation loan but my ability to pay is measured against my existing debt which is what I'm trying to get rid of with the loan. A loan would reduce my outgoings by over 500 per month but I'm fighting a losing battle. Any advice would be appreciated.
I have the unfortunate money hangover of getting into debt as a student to get through and bought my house at the height of the market so in negative equity that and my partners divorce has made debt a necessity. Just trying to get on in life now and feel like hemoraging money thats a waste.

Forget consolidating especially if you've already been turned down for a loan. Complete a statement of affairs and head over to the debt free wannabe board.

System

My friend is in the same boat so I know where you are. He has about the same amount of debt and earns around £40k a year. He's tried pretty much everything to get a consolidation loan and can't so I'd say that avenue is closed.

As for the house being in negative equity it doesn't matter a toss. It only becomes an issue if you want to sell, until then it makes absolutely no difference whatsoever to your life.

You need to address the credit card debt. There are two options:

1) This makes your money work the hardest:

List all your credit cards by their interest rate, the highest first to lowest.
Pay the minimum payments on all cards but the highest rate and on that one plough as much money as you can into it until its cleared. Move on to the next highest, rinse and repeat til they're all gone

2) Costs you more but can give you a better feel good factor.

List all your credit cards in order of balance outstanding.
Pay the minimum on all cards but the one that you owe the least money on. Plough as much money into that one to clear it off as fast as you can then cancel it. Again, rinse and repeat until they're all gone.

zippygeorgeandben

Check out my sticky at the top of the loan page. I was in a not so different situation.