Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • mulv2222
    • By mulv2222 6th Mar 18, 10:34 AM
    • 5Posts
    • 0Thanks
    mulv2222
    Help and advice needed re credit card debt
    • #1
    • 6th Mar 18, 10:34 AM
    Help and advice needed re credit card debt 6th Mar 18 at 10:34 AM
    Hi everyone

    I'm looking for some help and advice on how to sort our credit card debt. We run our own business and needed to make some very quick repairs and building work. Unfortunately, at the time we didn't arrange a loan as we didn't have the time and so put everything on credit cards..

    We owe 85K on credit cards and are paying over 2000 a month just on the minimum repayments - obviously making no headway into the debt itself. We don't use the credit cars for usual spending so the debt is not increasing.

    We can afford to repay the debt, as we are already paying 2000 a month, it's just the APR that is crippling us.

    We need to get a loan that will be a better APR but with who? I spoke to our bank who doesn't do loans for consolidation, and even if they did, the rate was 18% which isn't much better than the credit cards..

    Any advice or guidance would be much appreciated!
    Last edited by mulv2222; 07-03-2018 at 2:19 PM.
Page 1
  • National Debtline
    • #2
    • 6th Mar 18, 10:42 AM
    • #2
    • 6th Mar 18, 10:42 AM
    Hi mulv2222


    Realistically you won't find any cheaper consolidation loans unless they are secured against an asset - the most obvious example being your home (if indeed you are homeowners). It is essential that you seek professional, independent financial advice before making any such decisions.


    I don't know your precise trading status, but there would be no harm in also speaking to my colleagues at www.businessdebtline.org


    All the best


    Dennis
    @natdebtline
    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
    • mulv2222
    • By mulv2222 6th Mar 18, 12:24 PM
    • 5 Posts
    • 0 Thanks
    mulv2222
    • #3
    • 6th Mar 18, 12:24 PM
    • #3
    • 6th Mar 18, 12:24 PM
    Thank you for your reply.

    We would secure against our home if needs b as we can pay the loan and have equity in the house (450k). Just wondered if there was another way that i hadn't thought of...?
    • venison
    • By venison 6th Mar 18, 4:28 PM
    • 2,047 Posts
    • 2,192 Thanks
    venison
    • #4
    • 6th Mar 18, 4:28 PM
    • #4
    • 6th Mar 18, 4:28 PM
    Could you afford to throw a lot more at the repayments?
    Ex Board Guide
    • fatbelly
    • By fatbelly 6th Mar 18, 6:45 PM
    • 12,242 Posts
    • 9,278 Thanks
    fatbelly
    • #5
    • 6th Mar 18, 6:45 PM
    • #5
    • 6th Mar 18, 6:45 PM
    I know 35k sounds a lot but spread across 2 people (credit cards only being sole name) it's not huge - can you try for 0% balance transfer cards using a pre-eligibility checker?
    • mulv2222
    • By mulv2222 7th Mar 18, 11:44 AM
    • 5 Posts
    • 0 Thanks
    mulv2222
    • #6
    • 7th Mar 18, 11:44 AM
    • #6
    • 7th Mar 18, 11:44 AM
    Unfortunately the situation is much worse than i thought.

    My husband has CC debts and a loan totalling 57,000 - making our total CC debt around 85K...how did i not know this
    • fatbelly
    • By fatbelly 7th Mar 18, 6:19 PM
    • 12,242 Posts
    • 9,278 Thanks
    fatbelly
    • #7
    • 7th Mar 18, 6:19 PM
    • #7
    • 7th Mar 18, 6:19 PM
    In a debt management plan 2k per month will clear your debt in 3.5 years. I think that may be your best option - try talking to Stepchange or Payplan
    • January2015
    • By January2015 7th Mar 18, 9:07 PM
    • 2,069 Posts
    • 5,147 Thanks
    January2015
    • #8
    • 7th Mar 18, 9:07 PM
    • #8
    • 7th Mar 18, 9:07 PM
    Unfortunately the situation is much worse than i thought.

    My husband has CC debts and a loan totalling 57,000 - making our total CC debt around 85K...how did i not know this
    Originally posted by mulv2222
    You are not alone - when I finally faced our debt problem we were 95k in debt I knew it was a lot but until I sat down and faced it and added it all up I was kidding myself it was a lot less than it actually was
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    [COLOR=Blue][SIZE=2]
    • enthusiasticsaver
    • By enthusiasticsaver 7th Mar 18, 9:48 PM
    • 6,392 Posts
    • 13,118 Thanks
    enthusiasticsaver
    • #9
    • 7th Mar 18, 9:48 PM
    • #9
    • 7th Mar 18, 9:48 PM
    You will not be able to get any further borrowing with that amount of debt. I think you will need to consider some sort of debt solution, either a DMP or bankruptcy. You could post an soa up here to get more accurate advice as without figures it is difficult to see what the way forward is.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • sourcrates
    • By sourcrates 7th Mar 18, 10:49 PM
    • 14,023 Posts
    • 13,280 Thanks
    sourcrates
    I am on the same page as Fatbelly here.

    As, I assume your a homeowner you do not want to be thinking of bankruptcy, as stated, a Debt management plan would see you debt free in a little over 3 years @2k a month.

    Most creditors will stop interest, and those that do not usually will do if you badger them for long enough.

    That looks like the best option for you.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
  • National Debtline
    As, I assume your a homeowner you do not want to be thinking of bankruptcy,
    Originally posted by sourcrates
    The OP has referred to having equity of 450K, so bankruptcy is indeed an absolute no-no.

    mulv2222 - please do get in touch with Business Debtline as per my earlier post. They would be helpful in working out an accurate budget to determine exactly how much you can afford to throw at these debts each month and then look at your best options based on that.

    Dennis
    @natdebtline
    Last edited by National Debtline; 14-03-2018 at 3:17 PM. Reason: belatedly-noticed typo
    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
    • mulv2222
    • By mulv2222 8th Mar 18, 2:19 PM
    • 5 Posts
    • 0 Thanks
    mulv2222
    Thank you everyone.

    I have tried phoning business debt line but can't get through - i've tried 4 times in the last 2 days and have given up when being on hold for 20mins... I'll keep trying.

    I've looked into a dmp but we are hoping to move in the next year or so and from what i understand, we would struggle to get a mortgage even if we at the point, with our equity, repay in full?

    Some of my husbands cards are at 25% APR - can he phone and ask them to reduce the APR at all?
    • anna_1977
    • By anna_1977 8th Mar 18, 2:49 PM
    • 684 Posts
    • 937 Thanks
    anna_1977
    I think you'll struggle to get a mortgage with that amount of debt anyway?
    • mulv2222
    • By mulv2222 9th Mar 18, 1:28 PM
    • 5 Posts
    • 0 Thanks
    mulv2222
    If we sold our house we'd pay of the debts in full - would that then mean our credit file for borrowing i.e. a mortgage would be then good?? We'd still have a deposit of approx 400K...
    • fatbelly
    • By fatbelly 9th Mar 18, 3:42 PM
    • 12,242 Posts
    • 9,278 Thanks
    fatbelly
    Downsizing is an option for you if you are happy to do it. There would be all sorts of costs with the sale and purchase and it could be disruptive. But the dmp option would trash your credit history so if you were considering moving in the next 6 years, maybe build that in to your strategy.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,700Posts Today

7,662Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin