We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Trapped in Credit Card Debt
MoneyFreedom24
Posts: 8 Forumite
I have a debt of £12,250 across 3 credit cards. The interest and payments on them are killing me and then I have to use them again to cover costs I can’t pay so I’m in a vortex that never lessens. I checked my credit score here which is very poor and I have 0% chance of switching cards. I’m desperate. What can I do? I really don’t want to go into a DMP or IVA but if my credit is already so bad then would it make a difference? I am self employed but have had very little work this year so should I hold my nerve? Please advise. Thank you.
0
Comments
-
https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps/p1
lbm 11/06/12 dept total 11499.471 -
You should talk to the lenders and agree a financial hardship case to freeze interest and charges to allow breathing room. You could try for one of the sub-prime balance transfer cards like Capital One or Zopa (keep in mind that you cannot BT off that one at the end), worth a shot even if only a lesser amount for 9 months,
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
1 -
An IVA is a form of insolvency. A DMP isn't, it just freezes interest on cards and allows you to pay off at a lower rate. I suggest you consider a DMP and talk to StepChange.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.8K Work, Benefits & Business
- 619.5K Mortgages, Homes & Bills
- 176.4K Life & Family
- 255.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards