Reached end of the road - 54k debt

ManyWays

I live a comfortable If a DMP isn't wise on my current circumstances, then I don't see how a formal insolvency would be much better?

It eliminates the chance of anyone going for a CCJ. If Stepchange says the CU or Nationwide would veto it, you know where you stand.

I agree with @fatbelly when he said "But you now have a long history with this and it does not seem to be getting better."

abaka

At this point I don't think there's benefits in exploring an IVA or a DMP. I'm still getting good 0% offers on existing cards and decent offers on potential new cards (36 months with both Santander & Natwest). And I won't need to move anything for at least another 6-8 months. Of course if I don't show eligible for those cards or my existing balance transfers dry up my circumstances will change. But in 6-8 months, I will have shaved almost 5k of the existing debts so if it becomes a problem then, at least it's 5k less of a problem.

I think I was just spiralling yesterday. Unfortunately I am currently undiagnosed but 99% certain to have Bipolar and I think my head races to panic mode sometimes when there's no need to do so.

in_need_of_direction

if it were me, I’d set a cap for my savings and once this is achieved, I’d put the monthly savings amount to the smaller credit union loan until it’s gone. I’d then work out how much was needed when the first 0% card moves to interest and save towards that in an interest bearing account.
once I’d reduced the number of debts, I’d start to focus on the large credit union loan.

MasterG83

I was in a similar situation, you need a plan, once you've got it then run with it. Tackle the debt, moving debt around isn't working, take the smallest balance and get that paid off, close that account, then onto the next.

abaka

That is kinda what I’m considering I’m doing. Although I’m going to ignore the two CU loans at this point. Once I hit my savings goal (5k and currently sitting with £3500 although I do have car repairs to sort out this week) I’m going to stop focusing on paying the amount I'm paying into my savings. I'm going to then switch this amount into paying off each credit card based on the monetary value.

Unfortunately this means I'll have to "move" things around some more. But there's a logic to it and I am actually formulating change. This week, I've cancelled some of my other credit cards because a) I'm not using them and b) I may want some new offers from them in the coming months. I've realised I've now went 3 months without putting anything on credit cards, I don't think I've ever had 3 consecutive months without spending something.

I have this week switched my M&S card to Halifax for 18 months - This means I'll pay £25 a month instead of £70 which was the minimum payment. Allowing me to pump more money into my smallest debt.

I should likely be able to clear the Halifax/Virgin card before the 0% ends (and comfortably so). I'll likely have to move the other Virgin card in July as I won't have cleared that but hopefully it should be a lot less than what it is now and I would like to think I'll get a decent offer on some long term 0% cards come next July.

I believe I can clear my existing credit card debt in about 2.5 years which means I only have to move the Virgin card next year and maybe might have to look at the Barclaycard in March 29 but I think it will either be cleared or be a miniscule amount.

At which point I can then focus on pumping serious money into both the CU loans (one will be practically be gone) and then the Nationwide loan

I'm forcused and determined to finally follow through on this - I am also going to hold myself accountable by starting to post again on the debt free diaries.

13thlegion

Sounds like a sensible plan. And very well done on 3 months no cc spend. It's changes like that which make the biggest lasting difference.