Best option

guinea_pig_lover

Hello! I’m looking for some advice please. Just to prewarn this could be long. 

I’ve got to the stage where I’m in financial difficulty. I’ve always been so good with my money. I’ve had a credit card for years now and always kept on top of it by paying in full every month until this last year. We’ve had some unexpected things come up. We’ve moved house twice in a year and to a bigger one which meant rent has doubled (was £450 a month and now £1000) we had to buy lots of furniture we never needed before A lot of this furniture went on credit like Very, Argos, creation etc. they are all obviously BNPL by 12 months and have all come due around the same time. We got to a point where we couldn’t see us being able to stick to the deadline so took out some 0% balance transfer cards which were maxed and put the rest on credit cards. Now those dates are fast approaching and again we won’t be able to pay in all in full. My credit card is now maxed due to unexpected school trips (expensive residentials) and I’ve had to change my payment method from pay in full to minimum payment. My credit card alone is a minimum payment of £170 a month and a few days later interest charges go on of around £70-80 so it’s not clearing. I’m a part time worker and self employed also so when my part time wage goes in 1/3 of it is on minimum payments which is not leaving enough for shopping which were really budgeting on. Last week we could only afford a £40 shop which is really really difficult being a family of 5. 

I’ve looked into options of clearing debt and a DMP sounds ideal. But what other options are out there. I don’t want to jump into the first option I see. I’ve contacted national debtline and have a telephone appt booked for 11/7. At the moment I’ve been advised to cancel direct debits due out this month so that we can concentrate on bills and food shopping. I’ve done this. 

Any advice is appreciated. 

Thank you. 

13thlegion

You are not alone here, definitely come to the right place. I'd suggest doing a statement of affairs (SOA) this one can be formatted to this forum if you would like to share it. https://www.lemonfool.co.uk/financecalculators/soa.php

You will get some great individualised advice if you do.

The main purpose of it is to give yourself clarity on what your position is now. From there you can make the best informed decision.

Just a word of caution, typically we all have filled in a SOA incorrectly the first time we tried and forgot to include things. Give it as accurate figures as possible based on previous months spending. For things like gifts see what you spent on Xmas last year plus birthdays for the whole year and divide by 12. Anything that is quarterly divide by 3 to get a monthly figure etc.

stu12345_2

please read this stickie

and yes buy food cancel consumer debt, eg loans, credit  cards direct debits and also open new basic no overdraft bank account if you have debts with current bank ( to avoid the right to set off)and get your wages paid into new account and reorganise direct debits manually with the companies telling them of the new bank account to use.

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps/p1

Brie

Doing the SOA will certainly help you with your appt with NationalDebtline as they are going to ask you for those exact details.  They will then talk about solutions and how to get through the next couple of years.  

Solutions you might want to read about are:

• Debt Relief Order (DRO)
• DMP
• IVA
• Bankruptcy

Which you take will depend on your circumstances.  FYI:  I doubt anyone here will easily suggest you get an IVA.

Grumpelstiltskin

After your appointment with National Debtline don't be tempted to rush into any solution, you need to consider carefully whatever they suggest and come back on here for our opinion.