Got it off my chest, now what do I do?

ikkleosu

I've just confessed ot my OH (we don't live together at the moment, getting married next year) the true extent of my debt.

He was really understanding and wonderful. So I feel better in myself but I just don't know what to do practically, I think it's teh sitting doing nothing right now that's causing me so much distress.

My main problem is I have £5500 on credit cards, and I'm on benefits.

I got that way by stupidly trying to use gambling to clear my original managable debt of £1000! It was the most stupid thing I've ever done and I feel ashamed, and idiotic and weak and horrible. BUT that won't help me cure it.

I don't think I'm a gambling addict, I just was very stupid and more habitual than addicted.

Anyway now I need to deal with the debt, mainly the minimum payments on the credit cards.

I seem to be paying an awfully high minimum payment - it's around £140 a month. I've seen people on here with more than double that debt paying £100 a month, so clearly I'm being screwed.

Ideally obviously I'd like to transfer the balance to a 0% credit card, but I can't see how I'll get accepted for another card at this stage with my debt. As far as I know my credit rating is fine - I have yet to not pay a month, do you think i should try and apply for one?

Could I apply for a credit card in both my and my OH's name, so we can both put out debts onto it, hopefully with a lower monthly payment?

RAS

You need to post a statement of affairs - see the first sticky on the main DFW page, lising all your finances.

You need to know what the limits and APRS are on your CCs. my guess is that they are sky high and paying the minimums is not going to reduce your debt. it may however be possible to manouvre your debt to better advantage.

You can feed these into the snowball at www.whatsthecost.com and see hw much your current debt will cost you and how long it will take to pay off.

Also go to the cards and loans tab on the main web-site and check the article for credit ratings and order your credit checks. Then you will knwo whether you ahve a chance of a lower rate card. As you are on benefits and there is a credit crunch, this may not be possible.

ikkleosu

SOA

Income (4 weekly):
SDA £265
Income Support £72.60

Debt:
Loan £3000
Capital One credit card £4931 (limit £5000, APR 20.8%)
BarclayCard creditcard £640 (limit £680, APR 29.5%)

Outgoings:
Board £60
Loan payment £83


Minimum payments required:
Barclaycard £13
CapitalOne £140

RAS

Hi

What is SDA? What is your likely income situation longer term?

Is the board and loan weekly or monthly?

What is the APR on the loan?

have you got anything that can go on e-bay or to a car-boot sale?

Bagpuss741

I think SDA is severe disablement allowance.
http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_008431.xml.html

ikkleosu

RAS wrote: »

Hi

What is SDA? What is your likely income situation longer term?

Is the board and loan weekly or monthly?

What is the APR on the loan?

have you got anything that can go on e-bay or to a car-boot sale?

Yes SDA is Severe Disablement Allowance which means I am unfit for work. I have however applied for AQA and have been successful - however i have yet to have my induction and it's been two weeks. If i can get started with AQA I know I will be fine as I can earn an extra £250 a month. (This has what's set me off on panicking as they haven't got back to me in so long!)

APR on the loan is 15.3%.

I know that once I get married next August my OH's income and mine will mean that I can get on top of the debt okay, it's just in the meantime.

I do have stuff to sell on ebay - I've been trying to but am currently working at a loss!!

mrsspendalot

Is AQA likely to affect your benefits if you are classed as unfit to work? You have to register as self employed and pay tax etc. Just a thought. I'm not sure about benefit rules etc, but it would be silly to earn money for them to deduct it from your benefits - you would be no better off. It is a good way to earn extra cash though if it doesn't affect it.

ikkleosu

mrsspendalot wrote: »

Is AQA likely to affect your benefits if you are classed as unfit to work? You have to register as self employed and pay tax etc. Just a thought. I'm not sure about benefit rules etc, but it would be silly to earn money for them to deduct it from your benefits - you would be no better off. It is a good way to earn extra cash though if it doesn't affect it.

Thanks. According to my booklet that comes with my benefits, I am entitled to earn £86 a week without it affecting the SDA. It will mean my Income Support stops, but as it wills top when i get married anyway, it's worth it for the extra money.

I have applied to the DWP for a form to telll them about AQA but typically they haven't sent it out yet.

mrsspendalot

That is good then. Hope you enjoy it. I made £450 in my first month doing AQA. It's quite addictive once you get into it.

ikkleosu

mrsspendalot wrote: »

That is good then. Hope you enjoy it. I made £450 in my first month doing AQA. It's quite addictive once you get into it.

I know I'm going to love it because it's what I tend to do anyway - answering questions for people, looking stuff up. I'm just so anxious to get started, it's so frustrating and that's what I'm stressing over, if something has gone wrong with my application. As I say i passed the test, and signed the contract and sent it back but that's as far as I've got and it's been 2 weeks.

If I could get started with that I would feel so much better that I am DOING something about my debts, it's the sitting right now knowing I can't really DO much that's getting to me.

With AQA I could pay off £350 off my debts each month without crippling myself.

GeorgeUK

I suggest taking a look at your credit report (free) at experian.

Are there any late payments or defaults?
How many credit checks have been done in the past 6 months?

Not sure if the banks class benefits differently to income but i can't see any reason why you can't get this sorted if everything checks out.