Credit & Store Cards. Best method to consolidate?

marcopolo1975

Hey,

Glad to be a part of this amazing community. Please be gentle with me

Ok. So I have around 4 Credit Cards and Store Credit that I'm just really struggling with paying a separate amount to each month (and now they're coming with the 'You missed a payment so the Debt Collectors are coming' messages).

Was just wondering what is the best way to possibly combine these and pay smaller amounts (even though I have entered into a collections agreement with some already) or maybe even write them off? I'm new to this so any help would be of benefit from you much smarter folks than me.

Many thanks,

Marc

EssexHebridean

Welcome to the forum!

First step - a Statement of Affairs (SOA) - use the link to the calculator we recommend that you can find in my signature, and complete it openly and honestly. It might help to have several months worth of bank and card statements ready to consult to get things accurate, and it needs to show what your situation is right now, not what you think you "should be" spending - that doesn't help you to get a clear picture, or us to make suggestions. "Format for MSE" and then copy and paste into this thread and we can see what we can suggest. 

Also - now you've acknowledged there is an issue, it's really important that you try as hard as you can not to use credit - so if paying the minimums to these cards would put you in a position where you then cannot buy food, or pay your energy bills for example, then you should stop paying the minimums to the cards. 

RAS

You won't be able to consolidate them.

Without seeing your Statement of Affairs it's impossible to advise on the best way to deal with this.

Are the debts credit cards on 0%? Are you paying 49% on the store cards? Do you rent or have a mortgage?

Are you trying to support a more expensive lifestyle than you can afford, or already up against it and needing to stop interest being added?

Stop worrying bout the letters; they are just automated. Do put together your SOS and speak to Stepchange, CAB or National debt line.

Avoid anyone who offers to write off 79/81/86/91% of your debt. They are just going to charge hundreds to refer you to an IVA provider whose fees are £9kish.

marcopolo1975

Thanks for the advice folks. So first step do the SOA Calculator, and then speak to Stepchange? Is that the best route?

Many thanks

EssexHebridean

marcopolo1975 said:

Thanks for the advice folks. So first step do the SOA Calculator, and then speak to Stepchange? Is that the best route?

Many thanks

SOA then post that in here might be a good step - we can take a look. Stepchange are excellent, but do have a habit (understandable) of encouraging folk to start DMP's "right now" which is not always completely in that person's best interest...

If you're not comfortable posting it here then at least bear in mind that if you are going forwards to a DMP it probably makes sense to get all the debts defaulted first - as this will be less damaging to your credit file overall. 

marcopolo1975

What's a DMP?

Brie

DMP=debt management plan.

The reason you are unlikely to be able to consolidate them is that you have proven that you are struggling with the current debt.  Consolidation would involve asking for more credit (aka another loan or card or overdraft) which any bank would be foolish to give you.  Even if you know you'll take that £1k debt from each card and clear it with an £4k loan the banks don't know for sure you will - you might fly off to Thailand or fritter is away at Ascot. 

StepChange is good and can talk you through the budgeting process and help you.  So can National Debtline.  Citizen's Advice might help - it depends on where you are what your local one is like.  There's also Community Money Advisers often available at food banks and similar organisations. 

Start with the SOA.  Post here if you are comfortable (lots of friendly advice will be given).  Otherwise talk to one of the organisations already cited.  

BUT MOST IMPORTANT OF ALL...talk to the card companies and tell them you are aware of the problem and are working to resolve it.  Try to make the minimum payment each month if you possibly can.  If this is impossible let them know before the payment is due.  You might agree with them to make smaller payments by standing order so you know precisely what is being paid each month.  And stop using your cards.  That, I know very well, can be exceedingly hard.   

kimwp

Brie said:

DMP=debt management plan.


BUT MOST IMPORTANT OF ALL...talk to the card companies and tell them you are aware of the problem and are working to resolve it.  Try to make the minimum payment each month if you possibly can.  If this is impossible let them know before the payment is due.  You might agree with them to make smaller payments by standing order so you know precisely what is being paid each month.  And stop using your cards.  That, I know very well, can be exceedingly hard.   

If a dmp is the way to go, then it probably isn't a good idea to do this as it will just delay getting the accounts defaulted (so take longer for them to drop off the OPs credit file)

marcopolo1975

Hey,

Thanks so much for your really helpful advice so far. I cannot say how much I appreciate it.

How do I post my SOA calculations here?

Many thanks

marcopolo1975

Also you ask for my Partner's income which I have added. But I was unsure then if I put a figure in for Water, Council Tax that she pays? Or is that section just if I pay those?

thanks

marcopolo1975

Oh. And another thing. I'm Self-Employed and a lot of these so-called services don't seem to want to know if you happen to be Self-Employed