Credit card/bad credit score

luckybert

So I have two credit cards - both maxed out. Anything I pay off on them covers the interest charges ie I pay off £200 but the interest charges are £180. On these two cards are debts of £16000 approx
As a result of this I can't get a loan or another credit card.
Just wondering what my options are to get out of this mess? 

[Deleted User]

Cut your costs and throw as much as you can at the debt.  

Focus on the highest rate debt, paying just slightly above the minimum on the other.

floppydisk1

2 cards - both maxed out without any idea how to pay it off apart from another 0 % BT card...  You have no problem with credit card or credit file or rating - you have a ( at 16000 I might go as far as say - serious ) debt problem. Other loan / card is the last thing you want or need. No one will lend you at 0 % and anywhere near enough to cover 16k so another loan would only accelerate what is already in motion. Cut down  EVERYTHING you can and make some serious effort to bring the balance down as ZX81 suggested. If all you can pay on 16k balance is  £200 you mentioned - I'd suggest get in touch with a debt charity to see what your options are. If you can pay more  I'd strongly suggest to do just that, stop living beyond your means and get the balance down to something manageable.

luckybert

Another option I have seen is to put my credit card debt onto my mortgage.

Ebe_Scrooge

luckybert said:

Another option I have seen is to put my credit card debt onto my mortgage.

NO !!!!!

Debt consolidation is rarely a good idea at the best of times.  Switching an unsecured debt to one secured on your home is sheer madness.  If the loan is secured on your house, what happens when you can't pay the increased monthly payments?  Please don't even consider this.  As per the above replies, either cut your costs, increase your income or speak to a debt charity.

luckybert

Speaking to a debt charity will mean I am declaring myself bankrupt and will affect my credit score yes?

luckybert

It's only my credit card that is a pain because I pay the minimum and that is wiped out by their interest - I'm treading water!

[Deleted User]

luckybert said:

Speaking to a debt charity will mean I am declaring myself bankrupt and will affect my credit score yes?

No.  Why would you declare yourself bankrupt over a credit card debt?

And you have no credit score.  Just files of your credit history and conduct.

If the card is a pain because you're paying the minimum, pay more than the minimum.

MovingForwards

If you have a house you will not be looking at bankruptcy, more like a debt management plan (informal agreement with creditors).

Your credit score and rating are not seen by banks etc, it's the credit history.

Ask @sourcrates to move this thread to the debt free wannabe board and the members will offer guidance.

Ebe_Scrooge

luckybert said:

Speaking to a debt charity will mean I am declaring myself bankrupt and will affect my credit score yes?

No.  The charity will help you come up with a repayment plan - this may be finding a way to meet your obligations and pay the debt off in a reasonable time-frame, or it may be to negotiate with the lender on your behalf to agree to a debt-management plan.  In the latter case, your score will be affected, thankfully this in itself is completely meaningless.  A DMP will, however, show up on your credit files and make it harder to obtain further credit for the next few years.  But in your situation, this won't be an issue - please tell me you're not even considering taking out more credit ??????  Bankruptcy is not realistically on the cards, and at least you'll still have a roof over your head.

Honestly, if you're unable to substantially increase the payments towards the debt, speak to Stepchange, CAB, or one of the other well-known charities - they really are very helpful, and will have a whole load of good advice to offer.

luckybert

In the next six months I will be renting my house out so I will have income and in the long term (3/4 years) will be selling my home - maybe I can just manage somehow until then as I don't want to be considered a risk and not get any credit etc going forward.