Young, With Debt, Need Help!

TheCorporal

Hi Forum,

First post, not sure if this is right?

Anyways, I'm 25, but I'm already in £4839 of credit card/store card debt which I'm dying to get rid off!

I have a Lloyds Bank Credit Card - £3652
I have a Very account - £245
Capital One - £310
Vanquis - £632

I am struggling to find a balance transfer for the any of them as they are all pretty high rates and now the interest is coming fast! - anyone have any advice?

sourcrates

Hi,

First thing before anyone can give you constructive advice is to fill in this SOA, format for MSE at the end, post it up here, then we can get the ball rolling :

http://www.stoozing.com/calculator/soa.php

People will be along in the morning.

Craig1981

as suggested, post up a SOA...

there are a number of options that can be given, but will be more precise with an SOA

unicornrose2804

I follow the American Dave ramsey method of snowballing your debts. i found it really helpful and im currently half way through my journey! You need to know what your income is and write a budget and stick to it!

any extra income in your budget should be thrown at the first card and once that is paid you roll over the income to the next cards! working your way through them! there is no quick fix just hard work!

Look at were you can save money like phone contracts, memberships, tv and internet costs. Cut down on your groceries and eating out!

Every penny of your income needs to have a place on your budget!

getmore4less

I follow the American Dave ramsey method of snowballing your debts.

In America "Debt Snowball" means smallest to biggest

In America they call the highest rate first "Debt Avalanche" or "Debt Stacking"


In the UK snowball means highest rate first as done with this calculator
http://www.stoozing.com/calculator/snowball-calculator.php

enthusiasticsaver

TheCorporal wrote: »

Hi Forum,

First post, not sure if this is right?

Anyways, I'm 25, but I'm already in £4839 of credit card/store card debt which I'm dying to get rid off!

I have a Lloyds Bank Credit Card - £3652
I have a Very account - £245
Capital One - £310
Vanquis - £632

I am struggling to find a balance transfer for the any of them as they are all pretty high rates and now the interest is coming fast! - anyone have any advice?

If they are all charging high interest rates and you cannot get a 0% balance transfer then you have no option but to really cut back and pay as much as you can off them starting with the most expensive. I would post an soa as suggested earlier in the thread. On the plus side the balances are not huge and depending on your income and existing commitments it can be sorted but will involve some pain. You are young though so this is a lesson learned. Do not depend on credit. I would cut the cards up or at least put them away. It is imperative that you do not spend on them anymore.

jtmerralls

Firstly, ascertain what interest rate you are paying on each of the cards.
My assumption would be that Vanquis is the highest. This is generally a card aimed at those will lower Credit Rating.

Do a Budget Planner.
What comes in every month and what you HAVE to pay out. Consider any outgoings that are not 100% necessary.

You may struggle to get a Balance Transfer card and might initially wish to approach your Bank and do an Eligibility enquiry as to a loan to consolidate. Suggest not actually applying initially as this will adversely affect your Credit Rating
Work to clear the highest interest cards first.
Cut up the cards as they are paid off.

unicornrose2804

getmore4less wrote: »

In America "Debt Snowball" means smallest to biggest

In America they call the highest rate first "Debt Avalanche" or "Debt Stacking"


In the UK snowball means highest rate first as done with this calculator
http://www.stoozing.com/calculator/snowball-calculator.php

Fully Aware there is a difference! mathematically correct is the Avalanche method - paying highest interest off first then going down the list. I personally believe the snowball method is better mentally and will keep you on the right path longer! once those smaller debts get knocked out it will be easier to pay the higher debt!

TommyTBFC

Hi there,


I’m in a very similar situation as you. I’m 26 with over 6k in debt. Just remember in the grand scheme of things. 6k isn’t the end of the world.

Firstly as many on here has stated providing an SOA will let people advice you where to start. Also, as I’m an homeowner and my credit rating was already in tatters I entered into a DMP 3 months ago. Already been my financial situation improve drastically along with my anxiety with creditors has got better. Along with seeing over £500 knocked off my debt. Maybe that’s an option for you.

theoretica

You need to start with good information. Do you know where you money goes? Do you know where the £4839 went? You will probably need to look at where your money has been going and make some decisions about where it isn't going to go anymore to pay this off.