They warned me about credit cards!

Matthew1279

Short of it is, 5 credit cards, all now with interest, owning £18000. I can pay the cards, unfortunately every month I have to then spend what I pay on the cards! I simply do not earn enough. I am in a right mess.

We're not talking fancy holidays or nights out here either. 

So, all was..ok..Tesco loans every now and again..never had creditcards...and then one time they rejected me..got a credit card...from there snowballed, and naturally Tesco and other companies refuse on the grounds of affordability.  Which i totally understand, myself to blame as I say, no finger pointing please!  A shame, as a half decent loan would sort this situation out but obviously loan companies do not believe you / or careless what you do with the loan money. I get it.

I was looking at Stepchange  /  get another creditcard and transfer ( did that..hence ended up with the 5 cards! ) / or a loan from ..bank etc ( computer says No! ) 

Woe is me.  

Any thoughts. Yes..take a 2nd job...yes..that could be a solution.

Other thoughts welcome. Anything out there aware of. I see/not always listen to Mr Lewis..he tells you want you know..never really any answers - for me at least..but aware it is down to me end of the day I spend more than I earn and now in a situation where i am paying interest - alright Mr Lewis saying pay off the big card first...sadly real World not that simple.

Welcome any ideas.

cheers

grumbler

>>  Debt-free wannabe   board

penners324

Get on the debt free board.....

Spend a lot less and earn more (maybe sell some items).

Cut out all but absolute essential spending 

MrFrugalFever

Hi,

Sorry to hear of your situation! Well done for facing up to it and by joining this forum and acknowledging the issue you’ve already taken a good leap forward in the right direction.

Head on over to Debt Free Wannabe section of this forum and you’ll get all kinds of support and ideas. I can totally relate to you and have found myself drowning in unaffordable debt in the past which led to me seeking professional help. Thankfully I’m out the other side now but whatever the situation there’s ALWAYS a way out.

JES_F1

As others have said, head over to the Debt-Free Wannabe board.  It's a great place for support and advice.

You mentioned Step Change - I did my debt management plan with them and can't recommend them enough!

sourcrates

Have asked the forum team, to move this.

EssexHebridean

First step is often the easiest - you need to complete a Statement of Affairs - you'll find a link in my signature to the calculator we suggest using. Fill it out accurately and honestly - and it needs to reflect your situation as it stands right now - not what you "think" you should be spending, or what you think we expect to see - then "format for MSE" and copy and paste in here. We'll be able to then see how your budget and spending stacks up against your income, and iodentify where they might be areas you can save that you've missed. 

Things not to do right now:
Rush into any solutions
Pay (unsecured) debts if this impacts on you paying things like rent, or council tax, compromise on keeping warm, or being able to feed yourself, Those things always come first.
Borrow more to try to clear the debts - you can't borrow your way out of your situation as I think you've found.

Things to do right now:
Get that SOA done
Start using the MSE money mantra - "Do I need it?, Can I afford it?, Have II checked prices elsewhere?" before you spend anything at all that isn't strictly in your budget. 
Get a proper budget in place that will inform where you go from here.

Oh - and one last thig - pat yourself on the back for realising you need help, and asking for it. In many ways that's often the hardest part. 

enthusiasticsaver

I think if you are going to use credit cards you have to be disciplined with money as it is a slippery slope once you start regularly spending on them. 

If you are unable to afford to live after making monthly repayments then a DMP may be the answer.  Do you have a house or a mortgage? Don't do consolidation loans or further credit cards.  You cannot borrow your way out of debt.  Do an soa, make a plan and see how much you can afford to repay each month then you will know if you can do this without a formal debt solution or if a DMP  or IVA/bankruptcy is better for you. Stepchange are very good. 

AttractingMoreMoney

As others have said, a debt management plan can make a world of difference. They'll negotiate with creditors on your behalf and make sure you're paying back on a monthly basis what you can afford.

It's often the case that interest charges are frozen/removed as well.

It can be a slow way of paying back debt, but it is a more manageable one. The only pitfall really is making sure you're not tempted to take out any more credit or fall back into debt once it's all been paid off.

kimwp

AttractingMoreMoney said:

As others have said, a debt management plan can make a world of difference. They'll negotiate with creditors on your behalf and make sure you're paying back on a monthly basis what you can afford.

It's often the case that interest charges are frozen/removed as well.

It can be a slow way of paying back debt, but it is a more manageable one. The only pitfall really is making sure you're not tempted to take out any more credit or fall back into debt once it's all been paid off.

Just to clarify, the debt management plan DMP) won't do any negotiating. A dmp is an arrangement with your creditors - it can be arranged by you, by a debt charity (or by a fee-charging company - not recommended)