New Start - Step 1

Tom159753

So after applying for a consolidation loan and being rejected, I am not sure where to go from here. I was planning on moving the CC debt to new 0% cards as I am just about keeping afloat every month with these payments. But unless I change somthing I will be forced to stay with these high-interest rate loans paying minimum payments every month (the worst thing to do)

ratrace

Tom159753 wrote: »

So after applying for a consolidation loan and being rejected, I am not sure where to go from here. I was planning on moving the CC debt to new 0% cards as I am just about keeping afloat every month with these payments. But unless I change somthing I will be forced to stay with these high-interest rate loans paying minimum payments every month (the worst thing to do)

Hi, at this moment in time no one is willing to lend you more money tom the reason it too risky for them with the ammount of debt you have.

The next thing if i was you i would sell everything that didnt use such as old phones i pads bike etc... the stuff that may have contributed to the dent, pay off one of the cards so that will bring the total debt down and in a few months time hopefully you will be able to apply for some 0% cards etc....

all you can do at this moment in time topay it off as much as possible shifting debt around (i know you want to lower the interest rate) is not paying it off, this is why cc's are bad as once the rate kicks in they cost a lot in the long run

only way out of this is to knucle down and pay it off sorry i no thats not what you want to hear but its the only way

Mnd

Two comments I will make.
No mobile phones?
£400 entertainment seems massive in your situation, you could cut this considerably

Buffythedebtslayer

Can you get a second job? Baby sit? Dog walk? Upcycle furniture? Sell everything you can on FB?

It is awful I know. And I do know! Quite a few years ago I came here to sort myself out as my outgoings were over my income and it was such a weight and downward spiral.

Anyhow that is my suggestion make any money you can as legally as you can. And definitely focus on one debt to get rid of, psychologically it helps.
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Tom159753

Thanks for the replies.

We are currently selling a lot on Facebook and have organised a car boot also.

Mobile phones are included in that report underlandline.

As for a second job I can work overtime at work to increase my income by another 500 a month.

Entertainment for £400 I have given my family of four a budget of £100 a week to spend on trips, clubs, treats for the kids.

Thank you for your input and help in my situation, we have decided to smash the lowest CC amount over the next 6 months. 🧐

Tom159753

One other thing, I am.currently paying off mom payments on all CC and store cards.
Would it be a clever move to pay an extra £5 off each one per month so that the credit report doesn't show min payments when people look??

Tom159753

Sorry, another post.

I have started a saving fund to pay for car MOT and service. It's only £20 a month but that should cover the cost for service and not for both my cars.

The other thing I have never planned is birthdays, so when it's kids bday and party time I always go to CC so I will be factoring that it's my budgets starting next month.

Honeysucklelou2

Can you cut back on entertainment for a few months to be able to put money towards the debts to give yourself a bit of leeway? How old are your children? The grocery budget might be able to be trimmed...I budget up to £150 to feed 8. Batch cooking can help, baking snacks and shopping around.