Unable to consolidate debt

stressednurse88

Hi,
I’ve not been the smartest with my finances for a while... well, ever, and now I’m in a position where I have accrued £20k debt on 5 credit cards, and a 5k overdraft on my current account. 

I’m managing to make the minimal monthly repayments, but obviously this isn’t ideal and I’d like to consolidate and make some real headway with this debt.
I’ve been declined a loan by my bank (HSBC), one of the reasons they gave was that I haven’t been out of my overdraft for several months.  But making minimal repayments won’t see me out of my overdraft for some time. 

I’ve got an average income £31k/year, and I’m not a homeowner.  I’ve seen information about IVA’s, but they stay on your credit rating for 6 years, during which time I might want to look into getting a mortgage (wishful thinking really).
Just wondered if anyone had any advice, I’m feeling pretty hopeless and lost at the moment!
Thanks x

[Deleted User]

Visit the DFW board for more rounded advice about your finances. Consolidation is rarely the way forwards and certainly won't enable you to 'make some real headway with the debt', as the rate is likely to be higher and the term longer.

sourcrates

Oh please don`t be drawn in by the IVA adds, and certainly do not consolodate, both would be equally bad in your situation.

No assets, not a homeowner, good income, your looking at debt mangement as a posible solution, why not pop over to debt free wannabe, post your SOA and let us look at the figures.

foxy-stoat

Forget about buying a property, you will need 5% minimum cash, which you dont have, not to mention a few thousand for fees.

I do not think you are in enough debt to justify an IVA, but it will take you a long time to get yourself out.

Post up your monthly expenses, debt and interest rates, and see if there is anything you can sell, down value the car maybe, sell the latest Iphone that you have and get a cheap one.

Forget about consolidation loan, you wont get one and it wont help you.

Thrugelmir

Pay a visit to the Debt Free Wannabe forum. Plenty of advice and support over there. You need to tackle the root causes not the consolidate debt and allow matters to drift into neverland. 

[Deleted User]

Staying out of debt is hard work and this is why some folks look at other, easier, ways out.

 @stressednurse88 when you're in the right frame of mind set aside a few hours and think everything through, on paper write the whole sorry mess and study it hard and see the whole situation and problem - until you can do this consolidating and loans will seem the only way forward - but just digs you deeper into the debt abyss.

Then, do as the others have already suggested and do a Statement of Affairs, see what's what and set a plan - and stick to it.

Christmas is looming infront of us and if you don't make plans now you'll be another few hundred in debt by January and then the abyss is a huge cavernous one 🤨

Kidder81

Agree with the above, your situation is screaming out for you to take control of your finances, cut out all unnecessary spending and get your debts paid off the old fashioned way, without trashing your credit file.

Then your hard earned money can go towards saving for your own property.

Thenonameleague

Its doable but you need some strength/will power to get through it. Theres 2 options, you either up your income or you cut your spending, you could do both.
You need to cut back on where your money is going.
You really do need to get out of your overdraft.