Advice please!
Stressedmummy
Posts: 26 Forumite
Good evening everyone!
So, due to various reasons I have found myself drowning in debt again
I have finally gotten myself out of the “debt spiral” and am no longer using credit cards. My various minimum payments however are just crippling me. I set out at the beginning of the month with the best intentions, I had set myself the “snowball” challenge and have cleared the smallest debts. But I can’t even meet all my minimum payments anymore and it’s the classic case of robbing Peter to pay Paul.
I have switched utility providers and set myself a budget, I am not overspending anywhere, I just simply don’t earn enough to cover the debt payments.
So what’s the best solution? I don’t really want to go down the DRO route if I can help it.... is there another way of just bringing down my minimum payments to a manageable amount? Or reducing the interest? I am not eligible for any balance transfers.
I get paid tomorrow, and one credit card minimum payment is £137 and another is due the same week for £90 and that’s just this week! The following week I have another for £157.... I can’t carry on like this, and at the moment I’m just thinking of giving up this juggling act and just defaulting on everything.
Does anyone have any advice please?
Thanks in advance, a very stressed mummy
So, due to various reasons I have found myself drowning in debt again
I have finally gotten myself out of the “debt spiral” and am no longer using credit cards. My various minimum payments however are just crippling me. I set out at the beginning of the month with the best intentions, I had set myself the “snowball” challenge and have cleared the smallest debts. But I can’t even meet all my minimum payments anymore and it’s the classic case of robbing Peter to pay Paul.
I have switched utility providers and set myself a budget, I am not overspending anywhere, I just simply don’t earn enough to cover the debt payments.
So what’s the best solution? I don’t really want to go down the DRO route if I can help it.... is there another way of just bringing down my minimum payments to a manageable amount? Or reducing the interest? I am not eligible for any balance transfers.
I get paid tomorrow, and one credit card minimum payment is £137 and another is due the same week for £90
and that’s just this week! The following week I have another for £157.... I can’t carry on like this, and at the moment I’m just thinking of giving up this juggling act and just defaulting on everything.Does anyone have any advice please?
Thanks in advance, a very stressed mummy
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Comments
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Post SOA to triple check you are not able to make your budget stretch.
If you are genuinely at bare minimums - contact Stepchange or another charity to discuss options.0 -
How did you clear the smallest debts? what has changed since you had the money to clear those and meet the minimum payments?
There is always a solution, you just need to find the right solution for you.
I agree with the previous poster - post up a SOA and/or contact Stepchange or National debtline or one of the other debt charities.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
I'm probably going to extol the virtues of a dro.
But before that, here is the link to the soa calculator:
http://www.stoozing.com/calculator/soa.php0 -
I am having issues copying and pasting the SOA as I completed it on my phone haha0
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Well the smallest ones were very small in comparison, and I basically left myself short to clear them 0
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Defaulting will have a negative effect on your credit file, but thats the least of your worries.
If you are struggling with multiple payments, and they are leaving you short of money, then dont pay them, write and tell your creditors you are in financial trouble and they will put everything on hold for at least 30 days to allow you to get advice.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thank you for the replies so far.
Sourcrates - I don’t suppose there is a template for a letter somewhere? I wouldn’t know where to start
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Also if I’m planning on avoiding credit for the near future, I guess a negative impact on my credit score can’t hurt?
It’s prettt poor at the moment to be fair 0 -
National Debtline is your go-to for this
https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx
The one you want is
https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx0 -
Thank you fatbelly0
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