Struggling with debt / need help

carlsagen

Hello.

I hope someone can offer some useful advice, as ive exhausted my own.

My girlfriend of 2 years has mountain of debt she accumulated when leaving her ex. Happily shes learnt her lesson but is stuck in a rut and cant get out.

She has approx 18k debt over 5 credit cards and is always in her overdraft. She manages 90% of the debt by doing balance xfers and only pays the minimum due to lack of spare cash. (2 kids rented home) ive managed to lessen the burden of outgoings by looking at her costs on bills, tv, internet etc and reduced that by around £50 a month. She also had a lease car at £200 which she got rid of and I bought her a cheap run around.

She's tried to get a consolidation debt at her bank who refused about 6 months ago. They've since sent a letter saying they will be charging 39% interest on her overdraft rather than the £6 month fee.

She wants to try avoid bankruptcy or IVA as we would be looking to live together in the not to distant and I believe that will massively effect us buying together. I wouldn't be able to do it on my own due to the house size (moving up the ladder) as we need space for 4 kids.

Any help or suggestions would be great.

[Deleted User]

A loan is unlikely to be the answer, even if she could get one. But with that level of debt and minimum payments, no one will lend her more.

Get her to visit the DFW boards for advice on getting the debt cleared.

DCFC79

A loan isn't the answer, she needs to speak to stepchange, national debtline and set up a dmp.
Maybe go over to the debt free wannabe board and fill out an soa and post it on there.

foxy-stoat

List up the credit card interest rates, balances and limits, but if she is making balance transfers every month just to make minimum payments then its likely that her only way out is IVA or BR or maybe DMP.

What is the likelihood for her wages increasing, or anything of value to sell?

carlsagen

Deleted_User wrote: »

A loan is unlikely to be the answer, even if she could get one. But with that level of debt and minimum payments, no one will lend her more.

Get her to visit the DFW boards for advice on getting the debt cleared.

So a 20k loan over 8 years is unlikely?

[Deleted User]

Yes. If she could afford a 20k loan, she'd be making much more than minimum payments.

carlsagen

foxy-stoat wrote: »

List up the credit card interest rates, balances and limits, but if she is making balance transfers every month just to make minimum payments then its likely that her only way out is IVA or BR or maybe DMP.

What is the likelihood for her wages increasing, or anything of value to sell?

Sorry no, She's paying the minimum on each card. When the balance xfer 0% rate expires she then xfers to another for a deal. But shes not really getting anywhere. And struggling to get deals on cards to move it back etc.

in her overdraft each month. Effectively one month behind. Wage goes in clears over draft. Bills come out and immediately back into overdraft tilll next pay day.

She's been looking at another job after work as no prospect of an increase beyond statutory. She's also paused her pension contributions. Nothing of any value to sell.

carlsagen

Tesco - 2200
Virgin - 6000
Fluid - 4200
Lloyds - 2000
MBNa - 1600

All on 0%

Nat west - 900 @ 18%
Overdraft 850 monthly usage.

-taff

She's going to have to look at some kind of debt remedy. Post on the debt free wannabe board

foxy-stoat

carlsagen wrote: »

So a 20k loan over 8 years is unlikely?

Her salary would need to be north of £75,000 to get such a loan.

foxy-stoat

carlsagen wrote: »

Tesco - 2200
Virgin - 6000
Fluid - 4200
Lloyds - 2000
MBNa - 1600

All on 0%

Nat west - 900 @ 18%
Overdraft 850 monthly usage.

What are the limits to these cards?