Help, where to start?

ditty1234 · 18 February 2019 at 1:38PM

So I have 3 high credit cards, all are now maxed out and at 18% I have decided that I will suffer through it and bing down the total. This is a challenge as I am paying £700 in minimum payments on a part time income. The question is I have some money left over from a car write off and purchase; while I will use this to pay some commitments for my children, I will have some left over and I want to set aside a small emergency fund.
Also I want to pay off about 500 on one card to reduce interest.
Question am I best to bring down credit limit as I pay off, or should I just leave it there and hope to get 0% offers, also I know I need to get it down to about 25% free before my credit score will start improving. (have never missed payments, and have only rarely gone over on my bank overdraft.
This is an extremely precarious situation but after extensive reflection, I would rather suffer payments for 2-3 years than loose all in a DMP or bankruptcy. Any advice?
My total credit card debt is £25.000.
Don't ask, single parent, health issues, job issues, renter, and family abroad.

Pixie5740 · 18 February 2019 at 3:24PM

ditty1234 wrote: »

So I have 3 high credit cards, all are now maxed out and at 18% I have decided that I will suffer through it and bing down the total. This is a challenge as I am paying £700 in minimum payments on a part time income. The question is I have some money left over from a car write off and purchase; while I will use this to pay some commitments for my children, I will have some left over and I want to set aside a small emergency fund.
Also I want to pay off about 500 on one card to reduce interest.
Question am I best to bring down credit limit as I pay off, or should I just leave it there and hope to get 0% offers, also I know I need to get it down to about 25% free before my credit score will start improving. (have never missed payments, and have only rarely gone over on my bank overdraft.
This is an extremely precarious situation but after extensive reflection, I would rather suffer payments for 2-3 years than loose all in a DMP or bankruptcy. Any advice?
My total credit card debt is £25.000.
Don't ask, single parent, health issues, job issues, renter, and family abroad.

What do you think you would lose by having a DMP or going bankrupt? If £700 a month on minimum repayments is not possible on a part time income then you might have no choice but to consider a debt solution. Without seeing a statement of affairs no one can really advise.

ditty1234 · 18 February 2019 at 3:26PM

I guess mainly my pride, and I have made all payments so far, and have more structure to my worklife now, and I can make the payments most months. So now i just desperately want to lower the interest, to make it all worth while, but so far the bank has been unwilling to help.

Pixie5740 · 19 February 2019 at 4:26PM

ditty1234 wrote: »

I guess mainly my pride, and I have made all payments so far, and have more structure to my worklife now, and I can make the payments most months. So now i just desperately want to lower the interest, to make it all worth while, but so far the bank has been unwilling to help.

Most months but not every month suggests your debts are not affordable. You could enter into a DMP and ask your creditors to freeze the interest and/or accept a lower monthly payment. It might dent your pride for a while but it could give you the breathing space you need.

Help, where to start?

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