32k in credit card debt where do I start??

leroy1980

Well that moment has finally come where you actually tally up your debt and get a real wakeup moment.  I have 32k in credit card debts and I'm occurring serious interest now on 3 cards.
My first thought was to remortgage but I've only been offered 54% LTV and then a loan put because of my lending my credit score is poor so can't get a personal loan.  
Can anyone help or advise me how to go as I feel trapped and I'm now starting to panic
Thanks

The_Analyst

Have you tried contacting your card issuers and asking for help? They may allow you to put a payment plan in place. First course of action would be to then cut up the cards

sourcrates

Hi,

Well done for posting, people`s first thought when in debt, for some inexplicable reason, is always to see if they can borrow more, well you can`t borrow your way out of debt, many have consolodated their debts before, and ended up with twice the debt 6 months down the line, this is usually because they do not address the reasons that got them into debt in the first place, so its a really bad idea for most people.

There is absolutly no need to panic, for every problem, there is a solution, the same applies to being in debt, there is a solution, we just need to find the best solution that fits your circumstance.

If you are a homeowner, then some kind of debt mangement may be needed, or perhaps just better use of your disposable income, for the best advice, simple complete a statement of affairs, which can be found here -

https://www.stoozing.com/soa.php

Remember to format for MSE when it prompts you, and post on this thread, we can then advise on your best options.

enthusiasticsaver

I would also agree that borrowing more is not the answer particularly if your credit record is not good as it is not likely you will be offered a good rate.  Doing an soa is a good start but if you have credit cards charging high interest rates on that amount of debt then some sort of debt solution like a DMP or even bankruptcy may be needed especially if you cannot make minimums any more. Put the figures up as sourcrates suggests. 

Fatsdom

You start, as all good posts here, by showing us your SOA. Without it we can't do much, but with it we can advise on loads of potential savings in shopping, utilities, entertainment, transportation etc. 

fatbelly

Not bankruptcy. Homeowner with equity.

leroy1980

Here you go

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2470.11

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 2470.11[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 4.73

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 108

Electricity............................. 34

Gas..................................... 34

Oil..................................... 0

Water rates............................. 32.63

Telephone (land line)................... 0

Mobile phone............................ 16

TV Licence.............................. 13.2

Satellite/Cable TV...................... 42

Internet Services....................... 41.24

Groceries etc. ......................... 240

Clothing................................ 50

Petrol/diesel........................... 240

Road tax................................ 18

Car Insurance........................... 60.23

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 15.98

Buildings insurance..................... 8

Contents insurance...................... 8

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 12

Holiday................................. 0

Emergency fund.......................... 0

union fees.............................. 20.9[b]

Total monthly expenses.................. 998.91[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 155000

Shares and bonds........................ 0

Car(s).................................. 6000

Other assets............................ 0[b]

Total Assets............................ 161000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 107680...(4.73).....2.3[b]

Total secured & HP debts...... 107680....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

HSBC Loan......................9690.35...236.3.....6

MBNA 1.........................8368.7....189.9.....18.93

MBNA 2.........................4118.83...41........0

Amazon newday..................674248....191.......21.9

Halifax........................608136....60.81.....0

Lloyds.........................631821....63.5......0[b]

TheAble

Barring one or two obviously high expenses your SOA isn't a picture of excess. How did the debt come about out of interest?

leroy1980

Gradual build up of spending more than I should etc, buying a car etc then home improvements.  The thing is I could afford to pay it all but it just seems to have reached a tipping point now where it is coming unsustainable and I need to do something about it.

TheAble

Ok I see. Well the good news is that potentially have quite a large excess of income over and above basic expenses to throw at the debt. Getting rid of the cable TV is an easy win - you simply can't have cable when you're carrying debt. The most glaring expense though is your car - the fuel and insurance costs are astronomical. You're driving a lot of miles I take it? This being the case you really need to be driving the most fuel efficient vehicle you can find. So a key first step for me would be to see how you can optimise your car costs.

leroy1980

Im doing 70 miles per day and I drive a 10yr + X5.  Im 6ft 6in and find small cars really uncomfortable and restrictive.  Im putting £60pw in fuel.  But yes that would make a saving and smaller would equal cheaper insurance.