Personal Debt Advice - Credit cards with some complications...

kimwp

BrewDog1 said:

RAS said:

An SOA would be a really good idea because you need to understand how much you need to live on, before you can decide on a debt option.

Do you have any HMRC debts? 

Being a director complicates things. Are there any other directors? 

Also have you been propping up your own finances whilst not taking income or have you been buying stuff for the business, to prop that up?

Thanks for taking the time to reply. I don't know what an SOA is but i'll look it up thank you.

No I don't have any HMRC debts. I haven't made anything to pay tax on for a couple of years but always kept my tax affairs up to date. My accountant has been kind enough to work for free the last couple of years and has kept all that in order.

No other directors but my Mum is company secretary.

I've borrowed money on credit cards to keep me and the business afloat. I keep the business account just out of the red and nothing more. No money left to take a wage. Basic living and business expenses has been funded from credit cards.

I'm now a couple of months behind on my credit card payments. How long before they get heavy with me and I get more than just text message reminders?

This is quite scary so I'm very grateful to you all - I'm just working like crazy to try and win some business to fix all this.

SOA stands for statement of affairs. (There's a link in my signature). It should be an accurate account of your income and outgoings, to give you (and us if you post it) an understanding of your finances. For it to be accurate, 3-6 months of bank accounts, and add any unusual spends from the other months eg annual payment of car insurance, Christmas or holiday spend etc.

RAS

If you check out the stickies on this page, the bottom one has a link to the stoozing SOA. Format for MSE and copy and paste.

BrewDog1

Could I ask one final piece of advice please?

I am now 3 months behind on credit card payments but have secured a large business deal that means I should be able to catch up on credit card payments within the next 3-4 weeks.

Should I just continue to ignore the calls from the card providers and pay it off in the near future or is there a benefit to speaking with them?

Grumpelstiltskin

Have any or your debts defaulted yet?

Under no circumstances should you speak to your creditors.

We have asked you for a SOA which you haven't done, giving the best advice without seeing your SOA is difficult.