Advice on large debts please

Hi everyone,
I just wondered if someone might be able to give me some advice on what I can do please. Five years ago my husband left very suddenly and completely out of the blue leaving me with my two daughters who were six and three. Over the last few years I have not been as careful with money as I should have been and have also used cards to fund some renovation work which needed doing to the house. I am so ashamed of the mess I have got myself into and wish desperately I hadn't used credit cards as often as I did. Currently I owe 34,000 on credit cards and am at a loss as to what to do. My income is £1800 per month and in the summer I remortgaged the family home into my own name. At the moment all my credit cards are on 0% deals however these end in springtime and if I cant switch them over to other 0% cards the repayments will be impossible for me to make. I'm already struggling and using cards to pay for petrol now which I know is a vicious circle. I phoned step change earlier this afternoon and was on hold waiting for my call to be answered for quite a while by which point I lost my nerve and put the phone down. Any ideas would be so much appreciated. Thank you.

Replies

  • Willing2LearnWilling2Learn Forumite
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    Hi debtadviceplease and welcome to the forum.

    Be strong and get back on to StepChange, as it seems as though a solution is required for when the promotions on your cards expire. It may be possible that one or more of your cards will offer you a new 0% BT promotion sometime soon.


    Would you be able to post your SOA up in this thread? You will then receive far better advice, guidance and support.

    http://www.stoozing.com/calculator/soa.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
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    You have to stop using the cards. If you are paying out so much in repayments then you have nothing left to live on then a DMP is probably your only route. Why not put an soa up here as a first start?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of MoneySavingExpert.
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  • DebtadvicepleaseDebtadviceplease Forumite
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    Thank you so much for taking the time to reply. I will do my SOA and upload it now. I contacted step change again yesterday who were really lovely and have suggested an Iva is my best option. They said I have £175 per month as disposable income which would be my payment. Currently I’m paying £360 to my cards and personal loan.
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
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    That sounds positive. Check out the support threads for DMPs. Why did they suggest IVA rather than a DMP?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of MoneySavingExpert.
    Save £12k in 2023 Challenge #8 £12,000/£5700
    The 365 day 1p Challenge 2023 #1 £670.00/£72.00
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  • buythedipbuythedip Forumite
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    Nothing to add but good luck. Many speak very highly of the charities so you’ve nothing to fear there :)
  • fatbellyfatbelly Forumite
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    That sounds positive. Check out the support threads for DMPs. Why did they suggest IVA rather than a DMP?

    With £175 surplus a dmp would take 16 years.

    An IVA should be over in six.

    I think they would say it's about what is considered a 'reasonable period'

    The benefit to stepchange would be similar with each solution but of course they get their money sooner with an IVA. I wouldn't suggest going with them without talking to another insolvency practitioner or two.
  • DebtadvicepleaseDebtadviceplease Forumite
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    Yes that's right, step change said a DMP would take too many years to clear and wouldn't be suitable as a long term option. I have spoken to a couple of other insolvency practitioners since speaking to step change although felt as bit wary and wondered if a registered charity like step change might be 'safer'. Can I ask if there are others people have used and would recommend? I have also spoken to someone from IVA.com (Keith W) who was really helpful but just not too sure which way to turn for the best. Once again thank you so much for the replies.
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