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    • Abbie18
    • By Abbie18 2nd Mar 18, 12:02 PM
    • 2Posts
    • 0Thanks
    Getting out of Debt bad credit
    • #1
    • 2nd Mar 18, 12:02 PM
    Getting out of Debt bad credit 2nd Mar 18 at 12:02 PM
    Hi all,
    I've read through the forum off and on but finally going to post for guidance from fellow debt free wanna bs.

    I have 3 credit cards- one with barclay(5000), aqua(3000) and a bank(2000).

    These have crept up over time as a student and living on my own(no family here to stay with) a span of 5 years while i studied(i used these to pay for my courses- young and stupid and all that). Over the past 2 ive been trying to make a dent on these- they've not been increasing(no spending on them) i'm trying to get rid of them but its frustratingly slow due to the interest rates.

    I have no savings, In total i pay 120, 140, 60 for the 3 cards. This mainly hits interest which means the total is only creeping down slowly. I dont have good credit so my plan is get my credit rating back to an acceptable level and look at a 0% transfer or a consolidation loan from a credit union/bank. My credit rating is 642 and been also creeping up slowly.

    I dont take holidays, dont have luxuries i.e gym, meals out, haircuts. Im a low hourly wage but i live within my means. So i've no new debt and it is decreasing but its disheartening how little its decreasing compared to how much im paying only to see the balance jump down maybe 40/50 after interest i just want to know it will end at some point- ive isloated myself from people as obviously right now i cant just have a last minute meal with friends ive got a strict budget but people have stopped asking me out to do things.

    It's taking a toll on me mentally as i think about it all the time what happens if i lost my job and it was part of the reasons why i ended the last relationship(he got frustrated that we weren't booking holidays and being like everyone else- he had a grad wage i dont)

    I just wanted to check im doing the right thing.

    But also i was thinking of emailing the highest(barclay) interest rate and balance amount and asking them to consider reducing the interest so i can make a dent on the balance- but i wanted to know if anyones done this before and been sucessful so i know how i should be suggesting this to them?

    embarrassed to have to share this but any help would be welcomed
    Last edited by Abbie18; 02-03-2018 at 12:33 PM.
Page 1
  • National Debtline
    • #2
    • 2nd Mar 18, 12:07 PM
    • #2
    • 2nd Mar 18, 12:07 PM
    Hi Abbie

    Thanks for sharing your situation.

    I don't doubt that you're striving to budget carefully, but if you're able to share a Statement of Affairs here (see link below which is in a format that you can paste into this thread), that is usually a god springboard for suggestions/advice from others.

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Abbie18
    • By Abbie18 2nd Mar 18, 2:49 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 2nd Mar 18, 2:49 PM
    • #3
    • 2nd Mar 18, 2:49 PM

    i use the money saving expert budget spreadsheet. I suppose my question is more what steps can i take to reduce interest/size of the loan in other ways to help my payments make a difference?
    • katie4
    • By katie4 5th Mar 18, 11:46 AM
    • 136 Posts
    • 38 Thanks
    • #4
    • 5th Mar 18, 11:46 AM
    • #4
    • 5th Mar 18, 11:46 AM
    Have you tried contacting your local credit union?
    I couldn't get a loan/credit card anywhere but my local credit union accepted my loan application and with affordable rates around 4k over 3 years 140 a month i saved a fortune in interest, but you must make sure you cancel the cards once theyre paid off

    • anna_1977
    • By anna_1977 5th Mar 18, 1:21 PM
    • 684 Posts
    • 937 Thanks
    • #5
    • 5th Mar 18, 1:21 PM
    • #5
    • 5th Mar 18, 1:21 PM
    please don't take out any more debt. Post the SOA - people will help you have off where possible - it all adds up

    Good luck
    Last edited by anna_1977; 05-03-2018 at 3:34 PM.
    • ReadingTim
    • By ReadingTim 5th Mar 18, 2:49 PM
    • 2,670 Posts
    • 3,826 Thanks
    • #6
    • 5th Mar 18, 2:49 PM
    • #6
    • 5th Mar 18, 2:49 PM
    Even if you can get one, consolidation loans rarely work. More often that not, people simply double their debt.

    The only way out of debt is the mathematical way - to spend less than you earn, then work out ways to spend less and earn more. You can't borrow your way out of debt. An budget/SOA to work out where it should go, and a spending diary to see where it actually goes, is what you really need - not another loan. Sorry if this isn't the answer you wanted to hear.
    • DCFC79
    • By DCFC79 5th Mar 18, 5:44 PM
    • 31,662 Posts
    • 19,973 Thanks
    • #7
    • 5th Mar 18, 5:44 PM
    • #7
    • 5th Mar 18, 5:44 PM
    Do remember that your credit rating isn't seen by lenders, your history is whats important.

    IF you do get another loan make sure you use it as you intend.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
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