Help! Options?!

fatbelly

Beautiful-Moose wrote: »

All payments are up to date on every account I owe money for. However my Barclaycard debt is killing me. It stands at £16k. I pay £375 a month as the minimum payment but can't afford to pay any more than the minimum payments on this card. I also pay £240 a month for a loan that has a year and a half left on it, have a £500 overdraft which I live in every month and a Natwest card which is a closed down account so I can't use the card and I pay £45 a month on that.

The numbers on your soa tell the story - you are going further into debt each month by around £500.

Get your banking separated from your debts as National Debtline suggest.

Stop paying non priority creditors and write to tell them you are taking advice.

Tweak your soa. This doesn't hang together at the moment. You seem to be putting full expenditure (e.g.tv licence £13) with zero contribution from your partner. Also you need something for car maintenance/MOT - say £20 per month and I would suggest basic contents insurance, which might be about the same unless you are in a low-risk area..

Either contact Stepchange/Payplan or do-it-yourself - but you need a debt management plan initially. Something like £200 per month but this will still take 10 years to clear your debts.

You then need to consider whether bankruptcy with a possible income payments order for 3 years would be a better option. You would not be allowed to keep a 2k car but a 1k car may be exempt. You might find when you get a valuation of yur car on Parkers guide that it is worth less than you think.