credit card debt management

Gandalf644

priceey said:

ManyWays said:

how much are you charged for the overdraft a month? 

i think by the end of the month its about £1 a day.

I don't like the sound of defaulting :-( 

Don’t worry about defaulting. Many people in debt do it every day. Nothing nasty will happen. You will probably receive a few letters, e-mails or phone calls which you can safely ignore (unless the very unlikely ‘letter before action’ arrives by snail mail but even that is solvable).

Infact defaulting is helpful as:

Interest will be frozen from date of default.

You will not have access to further credit so cannot get any deeper in debt (defaults are noted on credit files but do drop off after 6 years from date of default).

Yes, you will have a bit of leg work to do, such as opening a new current account with a bank totally unconnected with any of your debts and manually setting up essential direct debits/standing orders etc (Do not use the Current Account Switching Service) and informing your employer/government departments of the new account to pay salary or benefits etc into.

As others have requested above, post up a full SOA so the experts here can get a full picture and advise you whether such as a Debt Management Plan (DMP) or other solution is optimal for you.

ManyWays

priceey said:

ManyWays said:

how much are you charged for the overdraft a month? 

i think by the end of the month its about £1 a day.

How much does that add up to over the month? you may be paying less than you the high interest rate suggests as you are only used for the amounts used each day, so it may not be much early in the month. As a result, a credit card balance may be costsing you MORE than an end overdraft balance, even though the card rate is a lot lower.

I don't like the sound of defaulting :-(
And you may not need to as you are clearing off a significant chunk. If you can keep up the current minimums, not let them drop, things may turn round quite quickly.

Why not review your situation in 3 months? If the cards have been going up, you need a DMP. If you can get a 0% transfer you don't, in the middle... well how much have the balances dropped?