debts debts debts!!

Coo-Heid

hi,

I have just moved in to my new place and I've started to realise that paying the bills are difficult, especially when i have loads of debt as well as my girlfriend having loads of debt too. I'm only 22 and i have realised that I have overspent in my earlier years!
I was thinking of taking out a loan to cover the lot, but i'm not sure what the best action is to take.
can anyone please offer advice?

myself:

loan: £225pm or about £3800 remaining over 2 years(insurance included)
credit card: £2500
other credit card: £400
store card: £500
overdraft: £500

girlfriend:

loan: £165pm
credit card: £600
overdraft: £700

I appreciate if anyone could help out with some advice.

I earn £25,000 and my girlfriend earns £13,000

BobbyG_2

Hi! You have come to the right place. :-) Have you read Martin's basic guide to handling debt problems on this site (click on Guides at th right)? It is a good summary of the options available. Consolidation loans can sometimes be the best way, but all too often can and up being more rope to hang yourself with. Plus, some of them have nasty hidden charges and clauses. Been there, done that, got the T-Shirt... Be careful. First you need to work out what you can afford to repay each month. There is a budget planner link in the above article. If you have good credit ratings, there may be much cheaper ways than using a loan (low or zero percent balance transfers to new cards you should cut up to stop you from using for anythig else). If you can get hold of "The Money Diet" book (I got it for £4.99 in Sussex Stationers, and some libraries have it) it is a superb list of things you can do and the good and bad points of each.

Do post back here with what you're thinking of doing, there are lots of people here who will have tried just about all the various options and can post their experiences with them.

Bob.

Robert_Sterling_3

Pay off highest interest rate debts first ( if you have a choice) ... Could be your store card.
Leave lowest rate debts until last apart from making the minimum payment each month.
Get 0% credit card(s) if you can.
Have a general read of the financial pages on this site as that may help a lot.

deemy2004

hi,
I was thinking of taking out a loan to cover the lot, but i'm not sure what the best action is to take.
can anyone please offer advice?

myself:

loan: £225pm or about £3800 remaining over 2 years(insurance included)
credit card: £2500
other credit card: £400
store card: £500
overdraft: £500

girlfriend:

loan: £165pm
credit card: £600
overdraft: £700

I appreciate if anyone could help out with some advice.

I earn £25,000 and my girlfriend earns £13,000

Hi

A large chunk of your debt maybe more than 5k could be easily rolled over onto 0% credit cards. Since your salaries would support limits in the region of 5k. That will give you enough time to pay off the debts with the option of further roll overs to other 0% deals.

Cheers ;D