Credit card debts, crippling me, min payment all I can do

Grumpelstiltskin

Stevie Debt Advice Line are a commercial company looking to make money out of you. DONT TOUCH ANYTHING TO DO WITH THEM WITH A BARGE POLE.

Naomim

Stevie76 said:

ok let me look into this.  I phoned Debt Advice Line yesterday who suggested i speak to Alchemy money, any intel on either of these?

Avoid avoid avoid!  If you need to, make sure you contact a free service. National Debtline or CAB.

Alchemy Money look like they offer secured loans. The worst you could do would be to secure a loan against your home. 

I know consolidation looks attractive but take some time to read some of the diaries on here and see how many of us, myself included have been caught in that trap.

Grumpelstiltskin

Stevie Have you read this sticky from the top of this board?

Updated Debt-Free Wannabe Sticky - links to important topics, help and template letters, are here. — MoneySavingExpert Forum

Stevie76

thanks guys i appreciate your comments.  im at work right now but will look at all this tonight.  thanks so much, i feel better already.  

Pixie5740

Stevie76 said:

ok let me look into this.  I phoned Debt Advice Line yesterday who suggested i speak to Alchemy money, any intel on either of these?

As others have said, avoid using companies like Debt Advice Line.  They do not exist to help you but to exploit you because you are desperate.

You cannot borrow your way out of debt.  Consolidation will not make things better and it likely to make things worse in the long run.  Unless you tackle the root cause of your debt you will never break the cycle.

When you have time get your bank statements and credit card statements so that you can put together an honest statement of affairs.

https://www.lemonfool.co.uk/financecalculators/soa.php

enthusiasticsaver

As others have said you need to be very careful either when approaching any non free for profit debt companies who will push expensive IVAs on to you or when trying to consolidate.  Consolidation is not a debt tool and invariably means more expensive debt in the long run.  If you are in a debt hole you have to first stop with the borrowing.  No doubt you have only been making monthly payments and are not behind because you are still using credit to live off and you need to stop  that too. 

If you are saddled with high interest rates and only just meeting the interest  then the best thing to do is to default and look into a DMP either through stepchange or self managed. That way the interest will be frozen and all monthly repayments will go towards the principal balances.  It will of course mean a damaged credit file for 6 years but in all honesty anyone who has £27k on credit cards plus further borrowing is probably not going to be in a position to take on more borrowing liabilities any time soon.  A soa is a good idea so we can advise further. 

MalMonroe

Hi, I would also recommend contacting StepChange. The phone call is free, their services are free, they are very helpful and they are non-judgemental. They really saved me when I was in a terrible financial mess.

Also as others have said, National Debtline and Citizens advice can help. But I do recommend StepChange as they helped me turn my life right around.

Link :  https://www.stepchange.org/

Please do not contact Alchemy! When I tried to click on their site just now there was an exclamation mark and a 'not secure' notification. But also, you don't want to pay for anyone's help when fantastic help is available for nothing.

All you need to do is prepare a list of your incomings and outgoings - not necessarily to publish on here as you seem reluctant to do that (understandable) - but so you can discuss them with your advisor, in complete confidence.

Honestly, you will be able to sleep much better after you've spoken to someone who can really help.

Sncjw

Consolidation will be doubling your debt. You may not think of it like that but the lender will be assessing the afforabikith on your current debts plus the proposed loan. Also there's not garuntee you will use that money to pay it off plus the rate could be higher an result in you paying out more money than you do now.