Does default change how I should tackle large debt?

JJBrighton27

Rob5342 said:

RAS said:

You need to check all three credit records to see if you have Arrangement to Pay (AP) markers against those cards that you have marked as 0%. Those can potentially damage your credit record for longer than a default.

That's a good point. It's completely counter intuitive but talking to the creditor and arranging a payment plan can be a lot worse for you in the long run than getting a default can be.

Lots of those credit cars have 0% interest listed, when do those 0% deals end. 

Okay. I will reach out today and figure this out. If these cards do have AP's on them should I simply ask to default? How does that process work from there? Still not clear what I should be looking to try and organise. 

RAS

According to your SOA, you've got enough income to cover your existing debts, even will some pretty big allowances for discretionary spends like entertainment and holiday.  You could reduce those and that would give you ample to start making inroads. So you are solvent month to month.

You certainly don't qualify for any insolvency option. You are simply going to need to keep making the payments and slowly reduce your debt.

You really do need to find out 

a) the APRs on those debts, and when the payday loans end.
b) indicate against each of them whether there are AP markers against them.
c) for the credit cards only, indicate what their current limit is, as it may be possible to shuffle debt to lower APRs.

It's concerning that you have absolutely no emergency fund to cover you if anything happens. Not even enough to put down the deposit on a new rental if you had to move. 

So this month's task is to open a new ISA or other savings account (instant access at present) and put your £250 into that to start building a buffer.