£55k in debt and admitting it!

Cazzerinthedoodoo

Hi Everyone

This website is a great source of knowledge and I can only hope to try my hardest to resolve my debt issues.

Up until march I have been ignoring the substantial amount of debt I am in

I have about £55k worth of debt

egg loan £14k about 7.9% interest.......about £385 a month
eggcard £10k about 22% interest rate.......about £255 a month
Virgin card £14 about 34% interest rate.......about £375 a month
rbs card £3.5 about 22% interest rate.......about £85 a month
Halifax £3.5 about 22% interest rate.......about £89 a month
Natwest £2.2k about 22% interest rate.......about £85 a month
citi £2.5 about 26% interest rate.......about £95 a month
capital £700 about 22% interest rate.......about £35 a month

I was self employed earning around £3k a month the bubble has burst due to credit crunch and my earnings are down to about £700 a month.

I am currently looking for full time employment.

I am really lucky that my partner has a house and is now paying all the bills etc...

The debt is my problem and not his so I want to sort it out myself.

I am assuming my best resolve would be to contact all my creditors via the phone and letter to ask for a temporary hold on interest and offer a token payment.....advice welcome?

Thankyou for reading my post.

bank_of_slate

Hi Cazzer!
Those are very high interest rates!
Have you used cards to withdraw cash?

You can workout how long it's going to take to pay off all the above by using the snowball calculator on https://www.whatsthecost.com

If you are paying minimum payments than they will take so many years to clear that it would certainly be worth talking to the lovely people at CCCS for some professional advice!

Keep posting on this board for lots of friendly support and advice!
...Linda xx

Bismarck

well done for posting...good luck and stay with us.

poppyg_2

Definitely write to them and ask them to freeze interest.

Do you have any outgoings apart from these debts or is your partner now paying for absolutely everything? Might be worth posting an SOA if you do have some outgoings, people on here offer some fab advice

Well done for posting x

tesuhoha

Just a thought. If your earnings were £3k a month self employed up until recently then your credit rating should be quite good. I think you should apply for some low rate life of balance cards while you can and when the online form asks for your salary, put the pre-crunch amount in. At least then, the interest that must be piling up on these cards won't be as bad. You will have to pay a BT fee but that will outweigh the interest payments over time.

tesuhoha

But obviously freezing interest is much better if you can do it.

Cazzerinthedoodoo

Thankyou everyone for your support...!!!

Does anyone know if any of the following credit card company's will give me a hard time freezing my interest for six months?

Virgin
Halifax
RBS
CITI
Capital
Natwest ...etc....?

or if there are certain credit card company's that won't accomodate me!

I have always paid on time and a little bit extra but now I am struggling and
will have problems after this month.

I also don't think my job will cover all the costs so I don't know if I should consider a consolidated loan....I know most of them have just as high interest rates and I may not be eligible as I don't have a permanent job at the minute?...any advice welcome..!!!

Deep_In_Debt

Consolidated loans are generally not a good idea as it doesn't really clear your debt.

As BOS recommended, contact CCCS, Payplan, CAB or National Debtline and they will recommend the best course of action for you. CCCS have an on-line debt remedy which maybe worth checking out if you get a chance and it will give you an idea of the way forward before you call them.

Good luck, you've come to the right place for all the help and support you need.

Angel_Cake_3

Cazzerinthedoodoo wrote: »

Hi Everyone

This website is a great source of knowledge and I can only hope to try my hardest to resolve my debt issues.

Up until march I have been ignoring the substantial amount of debt I am in

I have about £55k worth of debt

egg loan £14k about 7.9% interest.......about £385 a month
eggcard £10k about 22% interest rate.......about £255 a month
Virgin card £14 about 34% interest rate.......about £375 a month
rbs card £3.5 about 22% interest rate.......about £85 a month
Halifax £3.5 about 22% interest rate.......about £89 a month
Natwest £2.2k about 22% interest rate.......about £85 a month
citi £2.5 about 26% interest rate.......about £95 a month
capital £700 about 22% interest rate.......about £35 a month

I was self employed earning around £3k a month the bubble has burst due to credit crunch and my earnings are down to about £700 a month.

I am currently looking for full time employment.

I am really lucky that my partner has a house and is now paying all the bills etc...

The debt is my problem and not his so I want to sort it out myself.

I am assuming my best resolve would be to contact all my creditors via the phone and letter to ask for a temporary hold on interest and offer a token payment.....advice welcome?

Thankyou for reading my post.

Hi there, I have just joined this forum (last night) and already have had loads of help and advice, suddenly feel i am not alone!
Like you, have a pile of CC and loans and was robbing peter to pay paul each month. I work full time (not bad pay) hubby is on a good salary and I also have a small business that can bring in between £400 - £800 per month. Sounds OK? but most of it is going of debt repayments! It started a few years ago, hubby started work for a Co. that mucked him around, did not pay him so we used CC to live. We have never got out of it since, only got in deeper.
We both work really hard long hours and with this and the pressure of owing money, had taken its toll.
I was worried that Payplan may look at earning etc and not be able to help. I called them last Wednesday and has a phone interview Friday just gone. They have suggested a DMP and are sending me through all the paperwork and will contact all my creditors to explain the situation and work out payments and hopefully get interest forzen so money paid back, pays the debt and not the interest. I feel a huge weight has been lifted, coupled with discovering this site.
I know things may be tough for a couple of months and my credit rating will be trashed, but I never want credit again anyway!
I thought as you did to contact my creditors and did so back in Feb. Only 1 bothered to reply and wanted to know so much information before they would even consider freezing interest, I did not bother.
If you are prepared to let you credit rating suffer, I would contact Payplan ( I can not comment on others). DO NOT think about contacing any of these Companies you see on the TV, they charge and I have not heard good things about them. Payplan is free and they are lovely people and do not judge you!
I know the idea of interest free cards and low % loans are tempting, but from experience, I have done this transferred balances and within a few months have spent once again on the 'Cleared' card. I would not go down that road again.
My advice would be to bite the bullet and call them.......
Hope that is helpful, sorry it is so long.....
Keep me updated on what you do
Angel Cake xx

Cazzerinthedoodoo

Angel Cake and everyone thankyou for your support.

I also phoned the cc compies and most horrible experience they don't care and won't freeze any of my cc interest.
I am not late and have ever been late with payments so I thought they might have been more understanding.

An update I do have 25k in savings which was supposed to be going to my boyfriend as we were buying property together....
that will now go straight to my credit card debt now a.s.a.p.
I was in denial and should have used this money for my debt...!!!
I had mentioned that I have not told my boyfriend of six years how much debt I am in.
I can only hope he won't throw me out when I tell him tomorrow night. He is on a business trip...He has never had debt
in his life he has a very high paying job and title and has saved really hard and made money through property.

Another incident that happened was he applied for a mortgage and it was declined because of me as he put us both on the
application and my fear is that it will affect his credit rating.
He is going to wonder why I have kept this quiet and I will lose his trust. I feel so foolish and annoyed with myself.
On the plus side I have an interview tomorrow and if I can stop crying long enough to keep it together.

Caroline

Bismarck

Hi...don't rush to spend your savings....take some time to plan what you're doing and discuss it all with your boyfriend....it may be that you need some of the 25K towards a deposit or something....played right you could use some of the funds to pay off some of the balances and end up with the rest at cheaper interest rates and have some options.

I understand the temptation to say to your partner....i've done this this and this but then I "fixed" it by doing this....however what you do now may not be for the best if you rush into it without him knowing.

Hold your hands up, say where you are up to, what you owe and what your options are.

Once you've taken charge, your interview should be better...

He shouldn't throw you out but it won't be pleasant when you tell him.....

good luck in all sorts of ways...remember...don't rush anything now, looking for a quick fix...