Credit Card Vicious Circle

Pintaloosa

Hi, I'm new here.


I'm looking for help, advice, ideas, anything!


I have 5 credit cards, all maxed out, totally £18k. One is 0% the rest the normal interest rate.


Over half my wage goes towards paying these (I do pay more than the minimum) and once I've paid out rent, fuel, mobile etc., there isn't much money left in the pot, if any!


I looked at getting a debt consolidation loan, as I thought this would mean less interest, set monthly payments and a quicker pay off time. But I was refused because I have too many credit cards!


So how does this work then? I feel like I'm in a catch 22?


Stupidly I used the cards to help build business - Yes, I know that's not ideal, and I'm paying the price for it now.
I don't have car finance, don't have any other loans.
I use a Monzo card to help budget each month, which has been a God send, but it can't help when unplanned bills arrive and sometimes, as a last resort, I have to use a card - again, I know I shouldn't but how else do I pay a bill?


Please don't judge me, I'm already doing that as it is. I blame myself everyday for getting into this mess and I'm struggling to see an end to it. Its exhausting!

[Deleted User]

Post a SOA on the Debt-Free Wannabe board.

The usual rule apply - cut back on outgoings, spend less, earn more etc.

Pintaloosa

What's SOA?

Rainbowgirl84

Pintaloosa wrote: »

What's SOA?

Statement of Affairs.

thriftylass

Pintaloosa wrote: »

What's SOA?

Statement of affairs. http://www.stoozing.com/calculator/soa.php and then post to MSE with button on bottom.

Also list the interest etc on the cards. Most recommend pay minimum on all but the one with the highest interest. Pay that off first with what you can afford each month. Then tackle next while keeping rest on minimum. And so on. I think it's called snowballing.

Good luck

katie4

I have found debt consolidation worked well for us in paying off our credit cards, we went to our local credit union who accepted us no problem

Louoffofsparkle

Debt consolidation only works if you understand why you are in the situation you are in and you have a budget that you are sticking to.
I ended up in worse situations more that a couple of times by consolidating. But this time I was aware of my reasons and had my head out of the sand.

Do a soa based on what you are actually spending not what you think you should be. It’s hard but worth it. I used a snowball calculator to see when I could be debt free and I found that really helpful