It's time to sort it, but how?!

jack_1992

Hi everyone

I have known for a while that being so reliant on credit was wrong but I just ignored it and 'got by' I guess. Recently when I've taken a step back and realised what I am doing and how it is effecting me, I've had to accept there is an issue and look at sorting it out. Despite the feeling of embarrassment and that I've let my family down by being so stupid, I know I need to sort it out for them and us all.

I have just under 20k in debt over loans and CC's. I overpay 1 credit card by £30 a month to try and reduce that as it was the highest interest card. But then I am so reliant on credit I just spend on it again. I've tried emailing the CC company to ask for help and basically was told no its tough, we won't be freezing or reducing anything.
I have about £40 left to spend after all my payments are made which is nowhere near enough for a month so I am stuck.

I've looked this morning on StepChange and seen about a DMP but then I am due to remortgage next April and just know that I won't get anything if I go on one of these.

I really have no idea what to do for the best. Literally where do I go to even start? I'd like to avoid a DMP if I can but I just don't know how possible this is?
I'd love to get debt free and I know it's going to take some time, but I need to get it moving and going.

Thank you in advance for any help or advice.

BlueJ94

Post a SOA and people can advise on your situation as everyones is different, also I've learnt from this site BUDGET BUDGET BUDGET. Even if you spend 90p somewhere, add it to your spending. I was on a DMP for a month, didn't like it and now I self manage, I make sure I know where my money goes and how much I can really afford each month. TALK to your CC or Loan companies, they do offer help. 

Good Luck!

BlueJ94

Also, you said "I overpay 1 credit card by £30 a month to try and reduce that as it was the highest interest card." is this still the highest? What about your loan APRs?

GTBT123

Definitely post an SOA. The people on these forums are so helpful!

Are you able to get any 0% balance transfer deals? At least then you won't be paying interest on top of your borrowed amount. Even if you can only transfer some of the balance, it's still going to save you interest. 

jack_1992

Thanks for all your replies. I'll look at doing the SOA if that will help.

In regards to 0% offers, I won't get anything like that and I've checked and tried. 

The account I pay the extra £30 is still the highest APR. My Loan APRs are 22.8% and 24.9%. I got one loan as debt consolidation but that has just spiralled out of control too and not helped in the slightest, it's just made things harder.

BlueJ94

jack_1992 said:

Thanks for all your replies. I'll look at doing the SOA if that will help.

In regards to 0% offers, I won't get anything like that and I've checked and tried. 

The account I pay the extra £30 is still the highest APR. My Loan APRs are 22.8% and 24.9%. I got one loan as debt consolidation but that has just spiralled out of control too and not helped in the slightest, it's just made things harder.

Yes post an SOA as we can advise better, I'm currently in a similar situation of owing just under 6K now between CC and Loans, you will get there soon enough! Sometimes its depressing but if you have a budget/plan you can stick to and works for you then you'll be motivated to not give up! Maybe try a snowball method and work from there?

sammyjammy

I am making the assumption that your mortgage is with a high street lender in which case nothing to worry about there, you should be able to move to a new product as part of their retention deals when the time comes, I did my last one online, no fees, no contact or anything.  As long as you are not borrowing more money, in arrears or changing the term its very simple.
Without visibility of your SOA it sounds like you are really struggling, no need to continue that way

jack_1992

sammyjammy said:

I am making the assumption that your mortgage is with a high street lender in which case nothing to worry about there, you should be able to move to a new product as part of their retention deals when the time comes, I did my last one online, no fees, no contact or anything.  As long as you are not borrowing more money, in arrears or changing the term its very simple.
Without visibility of your SOA it sounds like you are really struggling, no need to continue that way

That's right - our mortgage is with NatWest. I have been looking today and their SVR is now already lower than our rate from when we were FTB so there will be around £100 per month difference just going onto the SVR. Even better that we can switch products, that gives me a bit of relief. Hopefully then when it's up again we can remortgage if we wish and all this mess will be over.

Working on my SOA later after work but yeah, I'm struggling. I've been mulling it over today and I already feel better knowing I am dealing with it not just thinking it'll sort itself out when it clearly won't. 

enthusiasticsaver

So long as  you stick with your current lender there is no reason to think you cannot get a new remortgage deal with them as they will not search on your records.

Your loans are at a very high rate and if you have used them for debt consolidation that would indicate you are at the end of the road with debt and a DMP is usually the next step or bankruptcy which you will want to avoid if you have a property.  If you are having to use credit to live then I would say unless there is a lot of fat in your budget you can trim then a DMP will freeze the interest and stop the debt going up further and repayments should be set at an affordable amount.  Your credit record will be shot though and you cannot take on any new debt for at least 6 years. An soa will help us advise  further. 

Coffeekup

Congratulations on your light bulb moment... I can understand the embarrassment, I had my lbm 15 or so years ago and felt the same. That will soon pass as you get your teeth into this and knuckle down In paying it off.

As others have said the advice on here is golden, if you want the best advice post your SOA. When your do this check through the last 4-6 months of bank statements for you and your partner...  Also be honest with it, as guessing numbers won't help with adventure people can give.

I wish you well with your journey.

jack_1992

So this is my SOA.

Income - £1688 per month

Outgoings

Mortgage - £486
Council Tax - £130
Water - £50
Gas/Electric - £80
Sky - £76
Car/Home Insurance - £45
Marbles CC - £150pm (Slightly higher than minimum)
Ocean CC - £70 pm
Tesco CC - £80pm
Amazon CC - £50pm
Loan - £162 pm
Barclaycard - £52 pm (Paydown plan)
Loan - £106 pm

Mobile - £70
Tablets - £39

This is without anything else so as you can see, it isn't good reading. And I have no idea where to start. Sky could be one thing but even that wouldn't make a big enough difference in my opinion to bring this down and under control.