Help Needed To Become Debt Free

yozza1981

Hi,

I am hoping that you can help, I want to be debt free!!!

I am 24 and currently owe £19,000 to various credit card companies. I have never missed a payment and my credit score is good, however I am only making minimum payments each month and have very little money left each month to live off and the debt does not seem to be reducing at all (due to very high interest rates on 2 of the cards).

Both my partner and I pay the debt off each month between us, however it is all in my name as my partner had bad credit in his youth and could not get credit. I have applied for loans to help pay off some of the credit cards but get refused because of the amount of credit I have in my name.

Can anyone help me as I am seriously thinking of consolidating but not sure that that is the correct way to go as it will damage my credit rating.

Thanks to all those that reply

GirlRacer_2

Hi there. Is there any chance you could perhaps apply for 0% balance tranfer cards and transfer the majority of the cards onto this/these. At least what your paying off will come off the balance.

yozza1981

Hi,

I have tried that as well and I have only been accepted by 1 credit card company capital One and the credit limit was only £500.00 so it would not really help. I seem to be stuck in a catch 22 at the mo.

Thanks for your input btw

tealady

Hi If you put up your SOA then we can see if there are ways you can cut back to clear these debts more quickly.

GirlRacer_2

Have you tried calling the credit card companies bluff and threatening to pay up and close the account. Sometimes that works and they offer you a better interest rate.

yozza1981

tealady wrote: »

Hi If you put up your SOA then we can see if there are ways you can cut back to clear these debts more quickly.

Hi,

What is an SOA? is there a template I can use?

Thanks

yozza1981

GirlRacer wrote: »

Have you tried calling the credit card companies bluff and threatening to pay up and close the account. Sometimes that works and they offer you a better interest rate.

3 of the 4 card accounts are actually closed. However they keep putting up interest rates regularly as well.

Thanks

GirlRacer_2

Have you thought of a debt management plan? There are non-profit making companies out there that can help you. They work out what you can realstically afford topay each creditor. It'll rip your credit report to shreds but if your struggling to pay it may be an option for you. If you look at the National Debtline homepage and fill in the statement of affairs for it'll work out how much money you have spare to pay everyone, it'll also work out what you can afford to pay every month. Make sure that you allow yourself money for all eventualities and give it a go. If you feel that this the way for you to go then conpact CCCS or PayPlan as these companies will help you out tremendously.

tealady

Hi sorry about the jargon. SOA is statement of affairs and is basically a list of your income and outgoings (see sticky for newbies at the top)

GirlRacer_2

Are you paying payment protection on the cards? If you are, cancel it. That'll save you a bit.