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  • FIRST POST
    • MarkMr
    • By MarkMr 6th Aug 18, 4:24 PM
    • 10Posts
    • 8Thanks
    MarkMr
    20k in debt is it easier to just go bankrupt?
    • #1
    • 6th Aug 18, 4:24 PM
    20k in debt is it easier to just go bankrupt? 6th Aug 18 at 4:24 PM
    Hi Have about 20k in credit card debt. It's managable at the moment, as I have just gotten a new job. This pays around 23k a year.



    Is it easier to just go bankrupt and write off the 20k debt? I don't own a company, my credit rating is already poor due to the debt (around 378).



    What are the bennefits of actually paying the debt back?
Page 2
    • Oakdene
    • By Oakdene 7th Aug 18, 1:22 PM
    • 2,443 Posts
    • 8,831 Thanks
    Oakdene
    What do you eat ?
    Seriously you have to live, and 30 is very low, twice that amount would still be low.
    Originally posted by sourcrates

    I cook everything from scratch & leftovers is usually my lunch the following day. My daughter takes lunch to school. I use different things, such as lentils & beans, to bulk out meals/
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydion ddolen,
    Dau enaid ond un taith.


    • fatbelly
    • By fatbelly 7th Aug 18, 2:13 PM
    • 12,818 Posts
    • 9,893 Thanks
    fatbelly
    I agree with W2L - ignore your credit score as it's just a made-up number.

    Try a soft search and see what comes up. There are a few things you can do to keep a good credit record (get on electoral roll, set up direct debit for minimum payment).

    If none of this works you will probably need a debt management plan, and that will affect your credit history. But on your present figures it would see you debt-free after 4 years, which is considered a 'reasonable' period
    • MarkMr
    • By MarkMr 7th Aug 18, 2:32 PM
    • 10 Posts
    • 8 Thanks
    MarkMr
    Water for one person seems high - is that on a meter?
    Originally posted by D_M_E
    I'll call about this.
    Is the council tax over 10 months? If so, ask council if you can pay over 12 months.
    Originally posted by D_M_E
    I don't know. I'll check.


    Nothing for entertainment - what about day out when the child comes to visit?
    Originally posted by D_M_E
    She's only 2. We go out for walks. She has toys she plays with too.

    EDIT - there's not many SOA's on the forum with a low mobile bill such as yours - but is it contract or is this the total on a PAYG SIM?
    Originally posted by D_M_E
    Out of contract. Called them and reduced the monthly bill to that 4GB unlimited calls/texts etc.
    • MarkMr
    • By MarkMr 7th Aug 18, 2:34 PM
    • 10 Posts
    • 8 Thanks
    MarkMr
    I agree with W2L - ignore your credit score as it's just a made-up number.

    Try a soft search and see what comes up. There are a few things you can do to keep a good credit record (get on electoral roll, set up direct debit for minimum payment).

    If none of this works you will probably need a debt management plan, and that will affect your credit history. But on your present figures it would see you debt-free after 4 years, which is considered a 'reasonable' period
    Originally posted by fatbelly

    Already on electoral role, and paying DD minimum monthly.



    If I could be debt free in 4 years that'd be amazing. I just don't see how that is possible with my current situation.
    • Willing2Learn
    • By Willing2Learn 7th Aug 18, 2:40 PM
    • 1,617 Posts
    • 1,225 Thanks
    Willing2Learn
    ...If I could be debt free in 4 years that'd be amazing. I just don't see how that is possible with my current situation.
    Originally posted by MarkMr
    If you can squeeze a 0% balance transfer on a reasonable limit, then that would be three years of paying down your credit card debt using the snowball method.


    Here, enter your CC debt in this snowball calculator.

    http://www.stoozing.com/calculator/snowball-calculator.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • martinlewisjunior
    • By martinlewisjunior 7th Aug 18, 4:59 PM
    • 88 Posts
    • 13 Thanks
    martinlewisjunior
    Is it possible to sell your car, remove the insurance and get a bus pass? This would free up 1000, remove the insurance and also the petrol costs. As the bus will be a fixed monthly fee.
    • Rosemary7391
    • By Rosemary7391 7th Aug 18, 6:32 PM
    • 2,380 Posts
    • 4,013 Thanks
    Rosemary7391
    What do you eat ?
    Seriously you have to live, and 30 is very low, twice that amount would still be low.
    Originally posted by sourcrates

    The oldstyle board is full of nutritious cheap ideas for food, and using up storecupboard ingredients.
    Slinkies 2018 Challenge - 0/80lb lost
    • MovingForwards
    • By MovingForwards 7th Aug 18, 6:59 PM
    • 409 Posts
    • 486 Thanks
    MovingForwards
    You have a car but have not including repair costs/MOT etc in your budget. You may buy parts and do repairs yourself but it still counts, as does the annual MOT fee.
    • Lydia42
    • By Lydia42 7th Aug 18, 8:13 PM
    • 95 Posts
    • 298 Thanks
    Lydia42
    Are the CC balances and rates accurate? Each one has the same balance and interest rate, etc. Not judging just seems too tidy. If you've just picked rough figures to make the SOA easier to fill out i understand but ultimately you need accurate figures to move forward.

    Car insurance is high. Have you shopped around?
    Ask to pay council tax over 12 months instead of 10.
    Have you reviewed your gas and electricity recently? 60 a month is quite high.
    Others have commented to suggest food bill could be cut - this is something i know we can do, but i'm finding it harder than i thought myself.
    Check everything else is accounted for - no spending at all on haircuts and birthdays/Xmas is surprising, especially if you have a child.
    Hope this helps.
    Total Debt August 2018: 19, 271
    • MarkMr
    • By MarkMr 8th Aug 18, 9:37 AM
    • 10 Posts
    • 8 Thanks
    MarkMr
    If you can squeeze a 0% balance transfer on a reasonable limit, then that would be three years of paying down your credit card debt using the snowball method.


    Here, enter your CC debt in this snowball calculator.
    Originally posted by Willing2Learn

    Apparently I can apply for an MNBA credit card at 0% for 36 months (according to this site).


    If I did that, what would the next steps be?



    Would I try and put 2 cards in there (16k) or would that be instantly rejected?



    Should I put a smaller amount, say 1000 on there, and pay it off in the 12 months?



    Or go with a full 8k and close down one of the other credit cards allowing me to open it again when the 12 month period ended?



    Thanks for your help everyone!


    To answer a few questions: I live in a rural area and have to commute for work. No busses, need a car. The car I do all the work on myself. It's a Toyota, so touch wood rarely needs more than an oil top up.


    I cut my own hair.



    Birthdays and toys are from charity shops, or experiences/time swaps, rather than a large present that costs a lot of money.
    Last edited by MarkMr; 08-08-2018 at 4:07 PM. Reason: Formatting
    • Willing2Learn
    • By Willing2Learn 8th Aug 18, 5:04 PM
    • 1,617 Posts
    • 1,225 Thanks
    Willing2Learn
    Apparently I can apply for an MNBA credit card at 0% for 36 months (according to this site).


    If I did that, what would the next steps be?

    Would I try and put 2 cards in there (16k) or would that be instantly rejected?

    Should I put a smaller amount, say 1000 on there, and pay it off in the 12 months?

    Or go with a full 8k and close down one of the other credit cards allowing me to open it again when the 12 month period ended?
    Originally posted by MarkMr
    Just do the formal application and see what they offer you. Once that is done, then you can worry about transferring over as much of your existing balances as possible. Keep you longest running credit card account open and close the others once the balance(s) is down to zero.

    If you have history of struggling to budget and manage your money, then I would respectfully suggest you do the following as it is the simplest method of repayment:

    Divide the total amount borrowed by the months of the promotion.
    For example: 16,000 / 36 months = 445 per month repayment.

    And then stick to it. You will and can come out the other side

    Edit: The reason why you keep your longest running CC account open is that it looks good on your file. Stability. Good credit account management. Lenders like to see that sort of thing...
    Last edited by Willing2Learn; 08-08-2018 at 5:08 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • fatbelly
    • By fatbelly 8th Aug 18, 7:38 PM
    • 12,818 Posts
    • 9,893 Thanks
    fatbelly
    I don't think 0% juggling is possible with my current low credit rating.
    Originally posted by MarkMr
    I agree with W2L - ignore your credit score as it's just a made-up number.

    Try a soft search and see what comes up.
    Originally posted by fatbelly
    Apparently I can apply for an MNBA credit card at 0% for 36 months (according to this site).
    Originally posted by MarkMr
    Now there's a lesson!

    If I did that, what would the next steps be?


    Would I try and put 2 cards in there (16k) or would that be instantly rejected?


    Should I put a smaller amount, say 1000 on there, and pay it off in the 12 months?


    Or go with a full 8k and close down one of the other credit cards allowing me to open it again when the 12 month period ended?


    .
    Originally posted by MarkMr
    Try for 16k - transfer as much as you can to 0%
    • patchwork cat
    • By patchwork cat 12th Aug 18, 10:11 AM
    • 5,663 Posts
    • 8,760 Thanks
    patchwork cat
    Remember that the MBNA is for 36 month, not 12 as you are referencing in your solutions.

    • Willing2Learn
    • By Willing2Learn 12th Aug 18, 2:51 PM
    • 1,617 Posts
    • 1,225 Thanks
    Willing2Learn
    If you have history of struggling to budget and manage your money, then I would respectfully suggest you do the following as it is the simplest method of repayment:

    Divide the total amount borrowed by the months of the promotion.
    For example: 16,000 / 36 months = 445 per month repayment.

    And then stick to it. You will and can come out the other side
    Originally posted by Willing2Learn
    I hope the above didn't scare you off. You know, it can be tweaked to make the repayments less. For instance 36 months x 345 = 12,420 - leaving a balance of 3,600. That balance can be paid off on the next balance transfer promotion!!

    Simples (or so the meerkat says).
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • MarkMr
    • By MarkMr 13th Aug 18, 3:10 PM
    • 10 Posts
    • 8 Thanks
    MarkMr
    Thanks! That's great info! Sorry for the late reply. I was busy over the weekend.



    Will apply tonight and see what credit card options I get.


    Can I place 2 smaller card balances on to the new MNBA card?
    • MallyGirl
    • By MallyGirl 13th Aug 18, 4:07 PM
    • 3,005 Posts
    • 8,009 Thanks
    MallyGirl
    you can transfer as many cards as you have credit space for. You are usually limited to 90% or 95% of the limit to leave headroom for fees on top
    • MarkMr
    • By MarkMr 14th Aug 18, 9:40 AM
    • 10 Posts
    • 8 Thanks
    MarkMr
    Thanks everyone. I applied and was only able to get 2200. But I've taken that off the most expensive monthly card and will be paying that back over the 36months, as well as the other regular payments. When I can afford to, I will over pay and hopefully close that debt quicker.


    Do I then just close that credit card, or add more to it from the other none 0% cards?
    • Willing2Learn
    • By Willing2Learn 14th Aug 18, 11:04 AM
    • 1,617 Posts
    • 1,225 Thanks
    Willing2Learn
    I applied and was only able to get 2200. But I've taken that off the most expensive monthly card and will be paying that back over the 36months, as well as the other regular payments.
    Originally posted by MarkMr
    What credit card company gave you the 2200 limit? I thought all your current cards had the same interest rate @ 17.5%?

    When I can afford to, I will over pay and hopefully close that debt quicker.
    Originally posted by MarkMr
    You mean the card with highest rate yeah? Just snowball those cards. You may become eligible for a 0% balance transfer card with a higher limit in six to 9 months, as long as you have successfully been reducing the overall debt. You can keep on juggling lol...

    Do I then just close that credit card, or add more to it from the other none 0% cards?
    Originally posted by MarkMr
    Just ask them for another balance transfer promotion!!!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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